The Auckland Star: WITH WICH ARE INCORPORATED The Evening News, Morning Nwes and The Echo. MONDAY, FEBRUARY 13, 1911. LABOUR IN THE COMMONWEALTH.

Auckland Star, Volume XLII, Issue 37, 13 February 1911, Page 4

The Auckland Star: WITH WICH ARE INCORPORATED The Evening News, Morning Nwes and The Echo.

MONDAY, FEBRUARY 13, 1911. LABOUR IN THE COMMONWEALTH.

far the cctwe Mat took* mttUUmce, for the wreng (Mt Heed* ttsUtmnoe, for the future to the tUtmncc, And the got* tb+t ««—»<*•.

A remarka-hie struggle has just been brought to a close at the State Labour Conference in Sydney. The question at issue was the demand made by the Federal Labour Ministry for a solid Labour vote in favour oi its referendum proposals, under which amendments to the Commonwealth constitution are to be effected, increasing the powers of the Central Government at the expense of 'the States. In attempting to enlarge its own powers and curtail those of the provincial legislatures, the Commonwealth Parliament is following a course which critics of the Federal Constitution predicted from the outset. Centralising tendencies are common to all federal systems, and the extent to which they may be carried depends mainly upon the power of resistance possessed by the subordinate legislatures.; At the time when federation Was effect-; ed in Australia, the State forces were so dominant that the powers of the Inderal Parliament were greatly restricted, and those of the States rigidly safeguarded. The weak spot in -the State defence -was the control of Finance. By surrendering theiT right to levy Customs taxation and granting the Federal- Parliament practically unrestricted powers of taxation in other forms, the States,delivered "themselves into the hands of the central authority. For ten years the Braddon clause assured to tfoe States a fixed proportion of the Commonwealth revenue, but this dtunsy expedient, the. outcome of compromise, was bound to give place to some more workable system, and it was only after a struggle that the States succeeded in wringing from the Commonwealth Treasurer a fixed allowance of 25/- per head.

That there are substantial reasons for extending the sphere of Federal legislation in certain directions must be admitted. It is difficult to develop progressive Liberal reforms, especially as applied to industrial conditions, under statutes .that are limited in their operation to certain States; and in Australia, as in the United States, differential' i railway rates also involve some very 'objectionable features, which cannot be remedied unless by Federal law. NeverI theless, any centralising measure is very properly regarded by the States with a good deal of suspicion, and in New South Wales a strong feeling has arisen at the present juncture with regard to the" Federal Government's referendum, which is to be submitted to popular vote on the 26th of April.

Naturally, these differences of opinion which pervaded the. community were i shared by members of the Labour party in New South Wales. A very large section, headed by Mr. lie"man, AttorneyGeneral, Was opposed to the referendum as representing a dangerous menace to the independence and integrity of the States. But the Australian Workers' Union, represented by Mr. J. C, Watson, and Mr. MacDonell (its general secretary and a member of the N.S.W. State Ministry), insisted that there must be solidarity in Labour ranks on this question, and a, resolution demanding Mr. Holman's withdrawal from (the Labour party was signed by his own colleague. The question gave rise xg an acrimonious discussion in the Conference, and various conflicting divisions shewed the intensity of the feeling that prevailed among members. At one time a split in the party seemed inevitable, but this -was finally averted by Mr. Holman giving way, and the whole of the members of the State Ministry agreeing to support the referendum, on behalf of which a united Labour campaign is to be inaugurated. The decision is important, as shewing the growing power of the Caucus, which now controls the government of the Commonwealth, and crushes with an iron hand any attempt to exercise individual opinion or independence of action. The Morning Herald" regards the situation as serious. It says:— "The Co_ttitution is not only to .be amended out of ■ existence, and the States destroy-ed, hut the High Gourt is to go. AM the careful checks devised by the best men in Australia, -working on the experience of great natrons that had federated, are to 'be thrown down after a decade of trial, and we are to -have a gigantic tyranny elected in their place. This is described as "making -the Constitution more democratic." If it is the people's will that the Commonwealth is to be supreme, and is to develop upon the mere shreds of a Constitution, there can be nothing more to say. But it is perfectly dear to thoughtful minds that the end of it'all must Ire anarchy and civil war. These are dire words to write, but they are written in grim earnest, and we believe taey represent the truth." We think this is an extreme view, out it at least shews that, in the opinion of those who are well able to judge, the Commonwealth has some difficult pro-' blems to solve before its harmonious working is assured, and we cannot be too | thankful for the tfant that New Zealaml statesmen bad the iareaight to mainUm; this coantryV jnowei»~of. salt-