BRIBERY ALLEGATIONS

Otago Daily Times, Issue 26635, 4 December 1947, Page 5

BRIBERY ALLEGATIONS

TASMANIAN PREMIER INVOLVED HOBART, Dec. 2. An inquiry into allegations that the Premier of Tasmania, Mr James Cosgrove," took £5400 in bribes from road transport operators was opened by the Royal Commissioner, Mr Justice Read, to-day.. It was stated that Mr Cosgrove would deny on oath that he had received money from any road transport operator or that he had given any assurance against road transport nationalisation.

The commission was appointed following charges made in Parliament by the Opposition leader, Mr N. Campbell. Mr E. G. Burbury, counsel assisting the commissioner, said that J. T. Sullivan, proprietor of a road transport service between Launceston and the north-east coast, alleged that money was paid by him personally to the Premier between December, 1944, and June, 1947, in half-yearly payments of £9OO each, and that the payments were made for the benefit of party funds in return for an assurance that he and other operators would not be pul off the road by Government-operated services. The hearing is proceeding. The' verdict will have an important bearing on the struggle against the Federal nationalisation of banking, as the Labour Government under Mr Cosgrove has a majority of one in the Lower House and is in the minority in the Legislative Council. An adverse decision would almost certainly bring a general election, with the probability of Tasmania joining Victoria, West Australia and South Australia in opposition to the banking legislation.