COMMONWEALTH AND STATES.

Press, Volume LXIV, Issue 13109, 7 May 1908, Page 7

COMMONWEALTH AND STATES.

FEDERAL GOVERNMENTS FINAN-

CIAL PROPOSALS

United Press Association—By Electric Telegraph—Copyright. MELBOURNE, May 6. Lato last rugfob Sir William Lyne tabled the Commonwealth's proposals relative to the taking over of the State dobts.

The proposals provide:—(l) All debts of the States to bo taken over. (2) A Council of Finance to be appointed to administer "the debts, raise new kans, and control the sinking fumd. (3) Each State to pay for a period of five years anntually to the Commonwealtih the difference between its share of six nrinion6j and interest, and expenses duo on its transferred debt at the end of five years, the period of 6uch actual payments to be contiivued, but to be reduced by a sliding scale operating anmiaily, for 30 years. At the end of that period, the States to be absolutely free from indebtedness as regards loans transferred. (4) The Commonwealth Parliament to make; an appropriation of an amount sufficient to pay the present annual interest and expenses of the debts taken over, say, 8$ millions, such amount to be payable to lie Council of Finance. (5) The loans to be taken over by the Commonwealth to be replaced at or near maturity by 3 per eenrt. Australian consols, redeemable at 20 years after the date of inscription, or at the option of tihe Commonwealth at any time thereafter on 12. months' notice' being given. (6) A Commonwealth sinking fund to be estaiblifiihed. (7) The States to transfer to the Commissioners tiheir present winiking funds. (8) After loans have matured, the difference between the present rate of interest and tihe rate payable on the new loan to be paid by the Commissioners into the emiring fund. (9) The sinking fund to be under the control of tihe Council of Finance, and to be used only for buying up State and Commonwealth stock and for redeeming loans at maturity. (10) Future loans required by the States to be made I through "the Council of Finance, and the States to pay annraally to the council interest on each loan so raised, and i, per cent, for tie siniking fund for the actual term of liability of the States in respect of such loan, tihds to cease at the end of such term, and the States to give an undertaking to pay the Council. (11) The Council of finance to decide on the order in which loans shall be made, loans for the redemption of State debts taken over to have precedence over ell cuher loams. (12) In the event of tie total loan requirement for any year exceeding a sum which, in the opinion of tie Council it ds wise to borrow, the Couracdl to be empowered to settle, in consultation with the State Treasurers, the proportion to be raised for each individual State. (13) In tihe event of the non-payment of the amountt due by a State to the Counimonwealtih. or Council of Finance, the Commonwealth to have the power, on receipt of a oertifioai© from, the Council, to impose a tax on that State, also tihe' Cxranoil to ibave the power to refuse to raise airy further loans for such State for a period not exceeding 10 years. (14) In oonsideration of the Startes being relieved from their indebtedness, transferred properties to be feamded by the States to the CammonweaMi free of charge.