THE COMMONWEALTH

Dominion, Volume 1, Issue 236, 29 June 1908, Page 7

THE COMMONWEALTH

' PENSIONS. FINANCIAL SIDE—STATES' VIEWS. POSSIBLE COMPROMISE. 5* TELEGRAPH —rnESS ASSOCIATION—COPTKIGHI Sydney, Juno 27. Tbcro is great dissatisfaction among tho Stato Premiers over tho powers claimed by tho Federal: Government under tho Surplus Revenue Act to retain unexpended balances in connection with tlio old ago pensions scheme. A wordy warfare occurred between Mr. Wado, Now South Wales Premier, and the Federal Ministers, and Mr. Wado has undertaken to do all he can to re-open tho question. He is agreeablo to accept Mr. Deakin's challenge to allow tlio Surplus Revenue Act to remain in abeyance so far as pensions aro concerned, providing tho Stato Governments allow tlio Commonwealth to retain sufficient revenue for tho payment of pensions. . . PENSIONS AND STATE RIGHTS. A Melbourne cablegram of May 28 intimated that a caucus of tho Labour party had agreed to pass the Surplus Revenuo. Bill (giving tho Federal Government power to appropriate and retain :certain unexpended balances, which now go automatically to the States) on condition that an Old Ago Pensions Bill was brought, in by tho Federal Government. It was also hinted that tho Labour party would not opposo Mr. Deakin's - naval defence vote. In effect, tlio idea was conveyed that tho Labour party would permit the passage of measures giving tho Deakin Government increased financial powers as regards the unexpended balances, and initiating tho naval'defenco schome, in return for —old age pensions. This compact' lias beon, given eft'ect to the extent of passing tho Surplus Revonue and Old Ago Pensions Act. whioh were rushed through bofore tho Federal Parliament adjourned. . In all this tho Stato Governments, it is said, see the beginnigof an anti-Stato campaign by tho Federal Government and its Labour allies. But as the Federal Govornment has sugar-coated the Surplus Revenue pill with old age pensions, tho States have to go warily. The "Sydney-Morning Herald" writes:—"What may be urged, with some show of , reason is that the present arrangement between Mr. Deakin arid Mr. Fisher (Labour leader) is preliminary to a great light, in which State rights will be tho main. issue. This being so, it ia well that the. decks should be cleared for action. The Surplus Revenue Bill does not travorse any principle which can affect tho life or just claims of tho States, and the provision for old age pensions must bo mado.soonor or later. It is clearing the deck« to' set these things ,out .of tho way." Mr.'Wade's present move would appear' to bo to chock the Surplus Revenue Act without obstructing the peiisions of the aged. . ; • ' • •