FEDERAL FINANCE

Hokitika Guardian, 7 April 1932, Page 5

FEDERAL FINANCE

POSITION OF N.S.W

WHAT ENFORCEMENT ACT MEANS (Australian Press Association.) , SYDNEY, April G. The Financial Agreement Enforcement Act (commonly called “The Garj nishee Act”), the validity of which the High Court has upheld, provided, | briefly, that the payment of the revei line due to the State must he made by • ■'■■l the taxpayers to tliC' Commonwealth j Government instead of to the State Government. Payment- of the revenue to tlie Federal authority discharges from any liability, whereas payment to a state official does not stop the pen- I alties imposed for the payment by a taxpayer to any other than the Commonwealth.

Any State Alinister officer or employee is also subject to penalties for attempting to secure payment to the State.

The Commonwealth is also empowered to retain any loan moneys borrowed! for the State by a decision of the Loan Council. The banks can bo required to hand over moneys held, or received, on behalf of the State. Offences against the Act are punishable in (summary proceedings by fines up to one hundred pounds or by six months’ gaol; and avo punishable on indictment by a fine up to five hundred pounds, or two years' gaol, or both.

Speaking in the House on the second reading of the Bill, the Prime Minister, Afr Lyons, said that the gross amount of interest in default by iNew South AYales, plus the exchange, was nearly six millions. After allowing

certain set-offs- this amount was reduced to £4,559,000. Since then, another milion has been added to tne amount that had been defaulted when the Federal Government arranged lor the payment of one million due on

April Ist. by New South AVales for overseas interest.

SEIZURE OF REVENUE

PROCLAMATION NOT LIKELY

SYDNEY, April 6

It was stated at Canberra to day that the gazetting of a Federal proclamation attaching the New South AVales revenue is not likely to-dav.

The Prime Alinister, Air Lyons, is to-day visiting Bathurst. He arrives at Alelbourne to-morrow, where special Federal Cabinet meetings will be held.

Mr S. Bruce, Assistant Alinister stated, in Alelbourne to-day, that the Federal Ministers were trying to get in touch with the Governor-General, ■Sir Isaac Isaacs, who is now at Taree, in New South Wales. However, it was possible for the Lieutenant Governor of Victoria, n.s his Deputy, to sign the Proclamation under the Federal Debt Enforcement Act.

TO COUNTER FEDERAL ACTION

PREMIER’S PLANS GUESSED AT

fiYDNEY, April 6

If the Premier of New South Wales, Mr J. Lang, has any immediate plans for combating the “Garnishee” Act of the Federal Government, he is keeping them a close secret. On his arrival at his office " to-day, the Premier refused to be interviewed. The “Sun’' says:—“Whatever the steps Mr Lang may take to thwart the Commonwealth, it is not expected that any forcible obstruction will be offered to its officers. It- is certain, however, that they wifi receive no co-operation. The Public Service of - cw South Wales is extremely excited over the Federal High Court’s verdict. Mr Lang had many conferences with high Government officials last week, when it is believed, a certain course of action was evolved, Mr 'Lang showed no sign of dismay to day. Indeed his friends say that he had anticipated that the decision of the Court would go against him.

A CONFLICT FORECAST. SYDNEY, April 6. Addressing the unemployed at Portland, Mr Hamilton Knight, a Labour member of the N.S.W. State Legislative assembly, warned his hearers of what was coming. The conflict, lie said, would call for great poilitical courage. It would give those who were glibly talking light the chance of testing their mettle.

INCOME TAN TO BE TAKEN FIRST SYDNEY, April 6.

lion. J. Lyons, the Prime Minister, interviewed at Bathurst, said that he •did not anticipate that Mr Lar.g would attempt to flout the Financial Agreement Enforcement Act, which had now been held to be valid. Mr Lyons added that the Federal Government were determined to take everv step lo carry out the law, irrespective of the ‘ coiic-equoTiees. Asked what New Sonlli Wales revenue would first- lie attacked, Mr Lyons replied that: possibly it, would be the income tax. BIG DEVELOPMENT EXPECTED. SYDNEY, Api il 6. The “Sun” referring to tin* High Court’s verljet against Mr Lang’s appeal as to (In* Federal Deld Agreement Enforcemlit Act, says: Dramatie developments are expected during the next fort.v-ciglit hours. Ihe whole State of New South Wales is agilnl-