FEDERAL AFFAIRS

Hokitika Guardian, 15 April 1932, Page 6

FEDERAL AFFAIRS

AIR LYONS' STATEMENT

N-ECESSA RY REQU IR'KAIE XTS

(Australian Press Association.)

MELBOURNE, April 15

Mr Lyons made it plain that the ten millions pounds loan will be i-übjei't to all States giving a dell-ite guarantee that the terms of the Premier's plan and Expert Committees proposals will be carried out.

Mr Lyons said the Government approved of the recommendation of the Committee that the -State Governments -should compel a reduction in rates o! interest paid by private individuals, a, s contemplated in the Premier’s plan. Cabinet approved of a -proposal to set up an honorary loderal employment council and six similar councils :n the c States. The Federal Government agreed \vi|h the recommendation that exchange should be increased to bridge part ol the gap between -costs and prices. It was also agreed that the exchange rate be controlled by the Commonweal:h Bank free from political control. The Premiers plan had stipulated that the Government deficits for 1931-23 would be thirteen million pounds. They actually would amount- to eighteen million pounds. Mr Lang listened attentively to the 'Prime Minister’s speech. He asked no question and took no part in the debate-

■Later. Mr Lang stated lie would op pose the proposal to reduce wages.