NEW AUSTRALIAN STATES.

Press, Volume LX, Issue 18094, 9 June 1924, Page 9

NEW AUSTRALIAN STATES.

COMPLEX PROBLEM. (from oto own coersspondist.) •SYDNEY, May 29. Tho agitation for the creation of new States, which commenced in NewSouth Wales a few years ago, and which has infected some other parts of the Commonwealth, has so far progressed in the Mother' State that a lioyal Commission appointed by the State Government is now enquiring into the whole movement,- and investigating tho various proposals that have been formulated for different areas. At flrsfc glance it is evident that if tke various areas which are putting forward their claims succeed, the presentState of New South Wales will be reduced, to little mors than a big industrial area. Tho movement has received strong endorsement in both State and Federal spheres, and apparently all that i 8 necessary is for the absolute desire on the part of the people affected to be manifested, and piacticable schemes to be formulated. And there's the problem. Whose will is to be consulted in such an important matter—the people of a whole State or tho people of the area proposed to be created into a new State? If it is conceded that it be the . latter what number or what area must be the minimum! And even those are only preliminary problems. The major problems arise over the basis of divi-. sion. It has to be remembered that in the creation of new States there has to be a clean cut. No residue of functions—judicial, financial, transport, or of any other kind for the whole area can be retained by the mother Government as is done where the negotiating areas are to remain related on some federal basis. There has to be a clean out, which will impose disproportionate burdens upon neither party. And there is a problem indeed. How, for instance, is to be decided the allotment of the vast debt upon the railways, which involves something like" £5,000,000 per annum in interest charges alone. The advocates, of the northern State think that the proper arrangement would be to estimate the expenditure actually within the area'affected, and Make that the chargeable sum, but it is obvious that there is a large amount of central expenditure in a railway system" which must-be propor tionately borne by all parts of the State. In fact, the splitting up of 'the railways would be so complicated that it is hard to see how, in the event of the creation of new States, it . would, be possible" to do other than hand the whole, of the systems over to the Federal Government. But that does not suit the' New Staters. In. each of the different parts there are pet schemes for building a railway to this point or that, which, however, unpayable they may be, bring* the movement itself a lot of lo?al Bupport. Similar trouble arises regarding public ■works. The New Staters would have a valuation of those actually in their | areas Bet off against as estimates'of the revenue from the area proportionately worked out. But public buildi ings, harbour works, and so forth have been constructed for them, and have served them just As much as the people } who live within sight of them. And is each new State to sj>t up its own judicial system, its, own laws,; with all the costly paraphernalia that they entail? Perhaps the Federal functions will be increased and the State minimised. That, in fact, seems to be what things are tending towards in all directions—the virtual abolition of States as such, the creation of provinces ■with functions well defined and absolute in respect of purely local af' | fairs, and a great accession of respon j sibility upon the Federal Legislature, j However, at the present juncture that is speculation, and tho result of' tho New. South Wales Royal Commission, which is presided over by a Judge, nnd which is touching upon all phases of the matter, will be awaited with the keenest iuterost, as it will be the ilrpt practical contribution to a mat ter which is gradually stimulating a public interest which promises to outrival that evinced over the Federation issue in the latter years of last century.