STATE LOANS IN AUSTRALIA

Press, Volume XCVII, Issue 28606, 7 June 1958, Page 11

STATE LOANS IN AUSTRALIA

Increases Granted (New Zealand Pres, Association; ' CANBERRA, June 5. The loan and uniform tax allocations to the Australian State Governments will be increased by £2sm. to a total of £4lsm. in 1958-59. The loan programme will total £2lom. and the uniform tax reimbursement £2osm. The division of this money among the State Governments is now being worked out by t the Loan Council and State premiers. Of the loan and revenue increase the Queensland Government should receive approximately £4.5m., bringing its total allocation for the next financial year to just over £s4m. , When the Loan Council met yesterday, the premiers asked the Commonwealth to underwrite a Idan works programme tor 195859 of £259m. At today’s session, however, the Federal Treasurer (Sir Arthur Fadden) rejected the request and offered on behalf of the Commonwealth to uhderwrite a loan programme of £2lom. Sir Arthur Fadden said the Federal Government’s revenue next financial year would be drastically cut by a £273m. war loan conversion, due late this year. Additionally, a fall in world prices and a substantial reduction in primary production because of drought conditions had cut Commonwealth revenue back to a figure not anticipated when the last budget was framed. Sir Arthur Fadden said the Government was also faced with the prospect of producing a budget due in August, in which it was hoped it would be possible to include a number of concessipns for industry and to the tax-paying public. Although the £2lom. for works programmes was well below the amount sought by the premiers, it is believed that it is nevertheless more than the premiers anticipated. It will mean a rearrangement of State Government works programmes during 1958-59. but it is believed that this can be effected without restricting development or causing unemployment.