FEDERAL FINANCES

Dominion, Volume 3, Issue 591, 20 August 1909, Page 5

FEDERAL FINANCES

COMMONWEALTH AND THE STATES

■ (Uy Telegrapni-Pi-css ...'As«pclatlori.»iCopiprifcii't'.i: : :7 '.-/,■ ■.'..;, '' ;;"'7Melbourne,-Aiigust 19.■■. ..The Premiers.!,. Conference- has.>iipf yet solved;:the/financial /pr'pbiemi^'The 1 prbspec'ts. of; reaching!.'a between' "the States and th^.Cbnim6ii , n'ealth' ; .'are Considered lippe.fui;-,'? 'f 6 *^*^ , ."' , !,'-.!'?;":?,!';:'" ! '. u '•?■'■■' " : . ■' ■ ;: v :i'w : \ JtAe ■' :r~^' ■■■■■:. PER.CAPITA ;BASIS INSTEAD OF'FaED' ••;; ■■,;;.;. 7; :Proport|on. :1 ".; ■■■• v ■Some ''advife "telegraphed" on 'August .13/ from Mclbonrnev to- the "Sydncv Morning, Hmld" throw- lights on - yesterday's caOlegram. concerning -the: proposed, payment to the State on S' 30s. per liead per annum basis..-The., •■ ast..^Premiers'-i . Conference at ; Hobart; adopted a fixed proportion of Customs ..roveuue: for., the States (three-fifths •■ instead of th 3 present three-fourths), with ' ■■ a -minimum 0f'i!6,700,000 a.year. For.ithis'the Premiers have now substituted a fisedx payment, per. capita (instead of. the' fixed [ion of Customs).> How ; .the States ■ havo 'been bargaining as to the amount per capita is shown by the diSßatph/toihe "&rald," whioh reads! ■:■■•"■■'.■'- '• ::■. ]•■■■■'- ■■■)',..; .■-.-.-.

• ."JV : -rotoesti°h;.-pf. ; Mr.'.Kidstbn that -the btates'. should pay this year's old-age pensions hns been tavourably received by the, other Premiers.'; It .is , understood 'that they ; will agree to supply the .'necessary money on condi'ioii that the financial arrangements to suecoed the ißraddon blot are settled at onco, and incorporated in..the' Constitution'.'.. In HAbart they decided that/since the greatest sharo of development work in Australia must' be"-done for. many years by-the States,- it '.was-of the utmost importance .that thoy should be assured of.a sufficient share" of Customs revenue. ■ "They therefore decided unanimously : that 'there• should be annually returned to the. States not. less'than three-fifths of thelgross revenue,frotn Custohis and excise; and they stipulated that not less .than .'sis arid threertuai'ter millions should be ieturned annually ?' ~e 'States,';-while 'preferential treatment should, bo arranged'.for Western Australia. There , was . thought, to;be no doubt that 1 if Mr. .. .Deakinwill accept-the Hobart' resoluhon the question will be definitely settled, and:' the Premiers will agree'to pay the oldage : pensions for ■ this year. If lir. Deakin will not accept these terms, it is 6aid the Premiers will agiee- to some modification of- them, particularly i with regard to . the' maximum amount which is jo be annually returned. ! .. "There i 3 also an alternative 'proposal from Tasmania for a fixed •payment per capita to States instead of a fixed proportion of the Customs .revenue.. The Premiers are'divided M'.tO 4 the anlbunt' of this per, capita' payment.' Mr. Kidstoii is prepared' to accept 285., which W»uld mean, thht the annual payment on the present- population basis would' come to less than'six.: millions. Mr; \Vad6 declared himself, : unable to take less than ' 30s. ■6dr'; per '■ capita.- He ; . says . that. in. ac-. ceptmg a pel', capita distribution on the basis <Sf the presont Customs..'revenue New South Wales would . lose/about. ,£900,000 per annum. The Treasurer. of 'South} Australia would not accept less than 505., while Tasmania- is believed to want Sis." ; . The redent Federal Budget anticipates that the current year, ! being with th& Cost of old-age pensiohs, will end in a deficit of■ <£1,209,000; and it : proposes to meet that obligation .by issuing short-dated Treasury bonas-frWhioh would .niton the initiation of Hedieral borrowing or the .creation of a 'seventh : State borrower in Australia The States now propose, if tlieir offer is accepted, to help the' Federa- Government with its pensions this: year, and thus avert Federal borrowing. J