AUSTRALIA'S DEBTS.

Dominion, Volume 1, Issue 197, 14 May 1908, Page 7

AUSTRALIA'S DEBTS.

[ THE CONFERENCE. . COMMONWEALTH V. STATE. MR. WADE ON THE PREMIERS' policy. : • BY TELEGHAPH —PRESS ASSOCIATION—COPYRIGHT. ■.Sydney, May 13. In connection with the Premiers' Conference, Mr. Wade, New South Wales Premier, says the States intend to stick solidly together for the protection of their rights as against, tho Commonwealth. W •<: . A DEADLOCK. Under dato 9, our Australian correspondent writes The. financial relations of tho Commonwealth and the States do not seem likely to bo adjusted, harmoniously at the Premiers' Conference, now' proceeding' in Melbourne. Tho'Federal .Government has propounded its scheme,bnt' : liow : has it "been' received? The debate, Kt the "conference, judging from the'reports to'hftnd, appears'to be ono of unanimous condemnation,-except for ■< tho speech of tho Tasinanian Premier, Qaptaia Evans. As ho considered .that; his .Staio will, fare the best of any under thej new proposals, it is easy to appreciate .liis attitude..when he urged the Premiers' not to summarily thrq'w; them aside as of no account, bnt to consider them, and endeavour .to mako themjmoro generally acceptable: The following statement ' summarises the scheme of the Federal Government All debts of tho States to be taken over; (2) a Council of Finance tp^be/appqinted,.to .administer' the debt, raise loans, control sinking fund, etc.; (3) each State to pay.for.a.period of five years annually to , the. Cpmmouiy'ealtli, the difference between its share of f tho .' COO,COO and the interest and'expenses due on'its transferred debt at the end of tho five-year period, such annual, payments to' be : continued,. mit' to bo reduced by a sliding scalo operating ■'annually for 30: years. At-tho 'end of..that'.period tho State is to be absolutely,.-.free'of ness as regards tho loans transferred. (4) The Commonwealth Parliament to make an appropriation of an amount sufficient, to pay the present annual interest and expenses on the debts taken over, say 8J millions, such amount to,,be. payable to tho. Council of' Finance. (s);Loans, taken over by tho Commonwealth to'bo replaced' at or near maturity Australian. Consols redeemable 20 years after" the' date of inscription, or at the'\'dptiori; of' tho Common-' wealth at any time thereafter, on 12 months' notice. (6) A .Commonwealth sinking; fund to' bo established. (7) Tho States to transfer to tho Commonwealth tho present sinking funds. (8) After a loan luts matured, the difference betwoori the present rato »£ interest, and' the rate payable on the new loanrto'be -paid,'by tlie commissioners into the sinking fund. (9) Tho sinking fund to be under tho control of the council, and to-be used only for buying up Stato and Commonwealth stock, and for redeeming loans at maturity...(lo) Future loans required by tho StatesUo. bo mado through the, council; tho States 46' pay' annually'"to the' council the interest on each loan raised, and one-half per cent, for sinking fund for an actuarial term. Tho liability of ; the' States in re-' spect to such loan to ceaso at the end of'.suqh terms, and tho States to give an undertaking to pay the council. (11). Tho Council of Finance to decide the order; in,;.which loans ;i shall-be made; loans for tho redomption of State debts taken over to have precedence over'.'all other loans. (12) In the event of tho' total loan' requirements for any year exceeding, the sum which, in the opinion of 'the.council, it.is wiseito borrow, the council to be'empowered to settle-in. iconsult'ation with the State Treasurers tho proportion to be. raised for each individual State. (13) In the ovont of non-payiiient of an amount duo by a State to tho Commonwealth council, tho Commonwealth to.have power on a certificate from the council to" impose a tax on that. Stato; also tho council to have power to refuse to raiso further, loans for.'such State for a-period; not exceeding 10 years. _ (11); In consideration of the States being relieved of their indebtedness,. tho. transferred properties, to be handed by the States to the Commonwealth free-of charge. ' ."' Mr. Wade, the Premier of New South Wales, :stated in his speech at the conference .that.'the - word "disappointment" woidd but mildly express their views, and'that, if |, he , .\vere not''re- . strained by the surroundings .of a deliberative conference, .he would probably express himself.' in.much stronger language.''V-;., Mr. Bent; of Victoria,, plaintively inquired what sin the States had committed. Some'of the Ministers stated their.opinion that-the new Scheme plainly mennt The ; debato,-' is not yet concluded, "but enough has.been said to show that 'one 'of;the most vexing probloms whioli have confronted the'public men. of Australia ever since the dawn of Federation— namely, that of finance—is still far from being settled. ' (The conference has. since concluded without roSching any settlemtnt'of the'problem.)