TASMANIA'S DEBT.

Press, Volume LXII, Issue 18671, 21 April 1926, Page 9

TASMANIA'S DEBT.

COMMONWEALTH ASSISTANCE ADVISED. (BY CABLI—PEJSB3 ASSOCIATION—OOSTBIGHT.) (AUSTRALIAN AKD N.I. CABLE ASSOCIATION.) SYDNEY, April 20. He report of Sir Nicholas Lockyer, who was commissioned by the Federal Government to undertake an investigation into the financial position of Tasmania as affected by the federation, recommends that substantial assistance from the Commonwealth is necessary, in order that Tasmania may obtain relief from its present financial difficulties, and in order that definite measures may be made possible for the development of its natural resources.

To this end Sir Nicholas proposes that a loan, free if interest, be granted by the Commonwealth to Tasmania, in such amounts as may be required from time to time for a period of 10 yean, each instalment of the loan not to exceed £1,000,000, and to be for the development of agricultural and mineral resources, by means of scientific research.

The report also proposes a speoial grant of £300,000 a year, for 10 years, conditional on certain taxes being reduced, and £50,000 provided for afforestation in Tasmania under Commonwealth control. '

Sir Nicholas recommends that £500,000 be provided to relieve.Tasmania of part of the capital cost of her hydro-electric scheme, in consideration of the assistance afforded by the State in the establishment of the zinc industry, also that £20,000 per annum bo granted for 10 years for geological survey.

Sir Nicholas states that he concludes that the future prosperity of Tasmania depends laiigely upon thorough reform of the financial administration, and, in the absence of such reform, no s assistance from the Commonwealth Government is likely to aid materially in the progress of the State. "A VASSAL STATE." (AU BTB ALT AN AND X.Z. CABLE ASSOCIATION.) HOBART, April 20. Mr J. A. Lyons (Premier), commenting on Sir Nicholas Lockyer's report, said that the acceptance of assistance on the proposed lines would reduce Tasmania to the position of a vassal State to the Commonwealth, without giving adequate substantial relief to the Treasurer and taxpayers. PARLIAMENT SUMMONED. (austbaliax asd s.z cable association.) (Eeceived April 20th, 11.10 p.m.) HOBART, April 20. Both Houses of Parliament have been hurriedly summoned to meet and discuss Sir Nicholas Lockyer's report.