VALIDITY UPHELD

Rotorua Morning Post, Volume 1, Issue 192, 7 April 1932, Page 5

VALIDITY UPHELD

(Press. Assn.'

AUSTRALIAN HIGH COURT REACHES MAJORITY DECISION TWO dUDGES DISSENT

— By Telfegraph — Copyrlght).

SYDNEYj Wednesday. The Federal High Court by a ihajority of four to two, decided that the Financial Agreemeht Act passied by the Federal Parliament to compet the State of New South Wales to hoiiour its obfigations Is valid. The Act provides that State revenues must be paid into the Federal accounts to recoup to the Commonwealth sums paid by the Federal Government to the creditors of the State of New South Wales, and impose drastic penalties on State officials. and others who may to connive at thwarting the working of the Act. The New South Wales Government impeached the validity of the Commonwealth Act aiid appealed to the High Court, which has now by a majority decision declafed the Act valid. ! • The diSseritfers of thfe High Court judgment were the Chief Justice (Sir Frank Gavan Duffy) and Mr.' Justice H. V. Evatt (forinerly Independent Labour member iri the New Sohth' Wales State Parliament.) Mr. Justice E. A. McTienari, one of those favouririg the Fedei;al Miriistry's case, fornierly was AttorneyGeneral in Mr. Lang's first Cabinet. The Chief Justice made ihe following statement when the High Court met: "His Honaur Mr. Justice Evatt and I are of opinio'n that Part It. (enforcement against State revenue of the Financial Agreement Enforcemenf Act, 1932) is invalid." Their Honours Justices Rich. Starke, t)ixon, and McTierrian are of opinidri thht Part II is the v&lid law of the Commonwealth, and that no declaration of invalidity should be made as claimed by writ. "Members of the Court will give their indivadual reasons later."