FEDERAL FINANCES

Taranaki Daily News, Volume LIII, Issue 83, 16 July 1910, Page 5

FEDERAL FINANCES

MR. FISHER'S PROPOSALS. PAYMENT OF THE STATES. By Cable.—Press Association.—Copyright Melbourne, July 15. Mr. Fisher, in moving the second reading of the Surplus Revenue Bill providing for the payment of 25s per head to the States for ten years from the beginning of the present month, pointed out that a special concession of £250,000 would be made to Westralia and deductions made during the current financial year of £450,000 from the States to meet the Commonwealth deficit. He explained that as it would not be legal to bring payment into operation on Ist July, he was going to pay the States the full three-quarters of the Customs revenue up to the end of December, but square up accounts so as to bring the total payment for the year up to 25s per head. The contribution of New South Wales towards the payment of the Commonwealth deficit "would be £178,973, oi Victoria £143,092, of Queensland £03.788, of South Australia £30,529, of Westralia £20,113, of Tasmania £13,500. Mr. Deakin and some other Opposition members criticised the proposals in a friendly spirit. Others opposed them on the ground that Mr. Fisher's methods of dealing with the finances were unconstitutional.

Mr. Deakin declared that the Opposition general!} 7 recognised this as a settlement of the financial relations with the States for the next ten years.

In regard to the note issue, Mr. Fisher said he would not repudiate any State Act giving some banks the right to issue notes for years to run.