STATE CLAIMS. AGAINST THE COMMONWEALTH

Evening Post, Volume LXXXII, Issue 8, 10 July 1911, Page 7

STATE CLAIMS. AGAINST THE COM MON WEALTH

FOR TRANSFERRED PROPERTIES. THE FEDERAL OFFER REFUSED. By Telegraph.— P ten Association -"Cftpyrijfrt, (Received July 10, 9.30 a.m.) MELBOURNE, This Day. The Acting-Premier (Ml. W. A. 'Vtfatt) has written to the Federal Government rejecting the proposal to-pay as from, let July laet, three per- centum interest on properties transferred by the State- to thei Commonwealth, and- to set aside not 1e63 than, half per cent, a* a sinking fund for liquidation -of debt. Mr. Watt claims that current interest at tho rate of 3| per cent, ehouldf be, paid. He considers thai the Commonwealth proposal ie likely to seriously rupture the relations between, the Commonwealth Statce, The Victorian. Government k taking steps- to-c&ll an inter-State conference to doa-1 with the matter. The Federal Government, in foiwarding to the State Governments the bask on which it was prepared to settle the vexed question of payment for properties transferred by the States to the. Common-wealth upon Federation stated, according to tho Australian papers, tVt the basis bad been passed by the C<t..i.-n-et as one which the Government would be pleased to discuss, without prejudice or admitting its liabilities. The ba«Ls proposed Was that Mr. Miller's valuation should be accepted by the Commonwealth and State Governments, and that the Commonwealth should agree to pay interest to the States at the rate of 3 _'per cent., commencing with Ist July, 1910. Tho schome contained many details, but- these were its broad feature. The Millor valuation of the properties -was £9,500,000. New South Wales had already refused 1 to -agree to the basis proposed by the Federal Government^ on the grounds that a higher rate of interest should be paid. The Federal Ministers point out that the States received during tho. first three years of federation r £6,500,000 more thaft they were entitled -to under th& firaddon <?laase, New South Wales h&& also refused the offer. Tho Sta.te Government considered the rate to be paid should be equal to the average interest rate on -the public debt of New South Wales. With regard to the statement that "the States were paid altogether £6,000,000 in excess, of the three-fourths provided under the Braddon clause of the Constitution," the proportion of this amount received by New South Wales amounted to £3,009,966. Tho interest on thetransferred properties was asked for by New South Wales from Ist Jnly, 1910, without prejudice to any kgal claim of the Sta.te for interest prior to that date. The estimated value of tho properties was £3,787,648, and the interest, -at Si per cent., from Ist January, 1901, to 30th June, ,1911, was £1,292,535. West Australia, has intimated willingness to accept interest without prejudice at 3i per cent. At that rate the interest, mow due is about £25,000.