DEAKIN AND LABOUR.

Dominion, Volume 1, Issue 210, 29 May 1908, Page 7

DEAKIN AND LABOUR.

A NEW COMPACT. DEFENCE SCHEME AND PENSIONS. SURPLUS REVENUE BILL, I- HT rir.EOBiPH—PEISS ASSOCIATION— COTIMQVt. r Melbourne, May 28.. s The Federal Labour caucus decided to supi port the Government in passing 1 tho Surplus ! Revenue Bill, with an Old Ago Pensions - Bill attachment. The leader of tho party - (Mr. A. Fish6r) is annoyed. 3 Tho Labour party will offer no opposition i to the vote of a quarter of a million towards > tho Federal defenco scheme, which voto was 3 ' struck out of tho Estimates last week. Tho voto is to be brought up as a separato 1 measuro to mark the commencement of tho - policy of naval defence. ■ BUYING PENSIONS WITH BAYONETS, r The Braddon clause of the Australian Con- • stitution compels the Commonwealth to return . to tho States thrce-fourtlis of the net Customs. and excise revenue; and the Surplus Revenue ! Bill will not interfere with this process. Tho Bill affects the unexpended surplus of tho fourth retained by tile Commonwealth, which 1 surplus has hitherto, undor the Constitution, [ fen returned to the States. Under the Bill, i tnj'.Commonwealth will have, power to retain any amount (over and above the three-fourths) ■ if that amount is required and has been api propriated by the Commonwealth Parliament lor any special purpose. . In these circumstances, it is easy to seo the i nature of tho compact which is indicated as , having, been arrived at between tho Labour party and the Deakin -Ministry. Tho Commonwealth Government, is to have these increased financial powers if it provides a, Federal oldage pension; and the price paid by tho Labour party for the pension is^non : opposifion to tho ■ .defence scheme which Deakin possibly hopes to make. tho.coping-stone of his career. ' ' The clauses "of,, tho ■ Australian ' Constitution which are deprived of oporatioii by the Bill • nro tho tempoiluy, .bookkeeping clauses S9 to 93, which contain, a^special,-appropriation to tho States of all unexpended revenue; while they remain in force' the Commonwealth is bound to return every penny,liot actually expended. ■