FEDERALIZING STATE DEBTS.

Auckland Star, Volume XXXVII, Issue 87, 11 April 1906, Page 5

FEDERALIZING STATE DEBTS.

SYDNEY, April 10* The Premiers' Conference reaffirmed the resolutions carried at last years' conference providing for the continuance of the Braddon clause until an acceptable alternative is evolved. In reaffirming these resolutions, they desired it to be ' clearly understood that they are largely based on the proposals then made by Sir George Turner, which included the taking over of State debts as a corollary of the extension clause. Mr Deakin, who was present at the afternoon session, expressed his gratitude at the form in which the States had now submitted their ease with reference to the Braddon clause. The Pederal Government had now a- concise statement from the standpoint of the States on a very complex question, and there should be no difficulty in correctly assessing the financial views and requirements of the States. It was resolved that the conference is generally favourable to the proposals for the promotion • of immigration, -but that further details should be obtained from Mr Deakin. It was also resolved that weather and shipping reports, for information to the public, be furnished free of charge in the various States, and that the Commonwealth assume control of the quarantine service.

(Received 9-30 &.m.)

SYDNEY, this day. Whilst the Premiers' Conference reaffirmed the Braddon clause resolutions, it also recommended the introduction of the clauses of the draft Bill of 1897, which limits the Commonwealth's expenditure out of Customs and excise revenue to one-fourth of the net total, and a clause providing that the State debts should be transferred to the Commonwealth, and that interest should be paid out of surplus revenue. Mr Deakin expressed regret that no definite sum had been agreed upon with regard to the Braddon clause. He had hoped the conference would agree either to a definite sum for all time, or to an amount subject to reassessment from time to time. He, however, accepted the proposals as representing the mature views of the States, and would make no attempt to convince them that any other course should have been followed. Mr Deakin subsequently returned to Melbournei The Premiers were last night guests at a Lord Mayors dinner. The speakers emphasised that- an understanding had been come to for the States' working well i together. } Mr Bent ( Victoria) suggested that the : Federal Parliament should be located for ten years each in Melbourne and Sydney. 'At the end of that time they might be in a position to spend money for a Federal capital.

(Received 10.48 a.m.)

SYDNEY, this day. Amongst the suggestions made by the Premiers to Mr Deakin was one that he should, at the nest -election, refer the question of making the Braddon clause perpetual to the people. The "Sydney Morning Herald" says that the decision of the Conference does not advance matters much, beyond demonstrating that they have reached the point whereat the 'Federal and State authorities agree to differ. A conflict of interests so direct could not have been, expected to lead to much else. The States j had put their foot down, insisting on the Hobart resolution, which favoured indefinite extension beyond the ten years* period of the clause's operation.