AUSTRALIAN PREMIERS' CONFERENCE

Taranaki Daily News, Volume L, Issue 59, 1 June 1907, Page 5

AUSTRALIAN PREMIERS' CONFERENCE

THE STATES DEBTS. Brisbane, May 31. The Conference further considered the taking over of the State debts. Mr. Carruthers (N.S.W.) held that the time was not ripe. He declined to regard Sir J. Forrest's speech as a threat, the Commonwealth had not the power to take over the debts without the consent of the States. The latter had as much power in regard to the debts of the Federal Treasurer; in fact, a great {leal more potter, because they were in possession. Sir John Forrest was relying on the London market, but the States were not-going to Londou. He believed the period was past when Australia would have to look to London for loans. The onlv justification for handing over the debts wuld be to place on the Commonwealth the obligation of finding the interest. The way the. Commonwealth was trying to overshadow the State? could not "lead to good results to either party. He did not intend to put the Commonwealth in the position that it should have greater power, for that ~ a power might be used to make the States beg as favors what they were entitled to as rights. The President (Mr. Kidston) agreed with Mr. Carruthers that he would not consent to give the Commonwealth more powers without a permanent Braddon clause. Mr. Moore (West Australia), although he voted against the motion in his Parliament to take a referendum on the question of secession, said he was satisfied if it were brought up again it would be carried by a 90 per cent, majority unless special consideration were extended to Westralia. The Conference agreed to postpone the debts question till after the distribution oi the surplus had been determined.

FEDERAL GOVERNMENT'S POWER.

SIR J. FORREST ASSERTS HIMSELF

Brisbane, May 31. Received June 1, 12.34 a.m. Sir J. Forrest, Commonwealth Treasurer, addressed the Conference. He said he had read the Hansard report of the proceedings, and thought those who read the report carefully might fairly come to the conclusion that the attitude assumed by some members seemed to show that the Conference was the arbiter of the Commonwealth, and that the Comv monwealth was ashing something that would be injurious to their interests. As a matter of fact, under the Constitution the Commonwealth had all the power it wanted. It had powers which it did not desire to exercise. The Federal Parliament had power to take over all debts at the time of its establishment if it chose. It came as a clap of thunder to him that the States did not want their debts interfered with. It seemed to him that a taste of prosperity had turned their heads, otherwise he would never expect in their deliberative assemblies representative men stating the credit of a State was better than the credit of Australia. He was of opinion that the Federal Parliament would not do any thing piecemeal to deal with one-half of the financial problem. In no cause was his observation intended as a threat, but he had fully expected the Conference to settle the whole question with regard to the surplus and State debts, and was disappointed personally and Ministerially with the attitude taken up. He regretted he could hold out no hope that the Commonwealth would deal with return surplus, and not with State debts, and urged the Conference to make an effort to reach finality.