THE BAILIFFS IN

Evening Post, Volume CXIII, Issue 109, 10 May 1932, Page 7

THE BAILIFFS IN

STATE UNDER DISTRAINT

COMMONWEALTH'S TASK

(From "The Post's" Representative.)

SYDNEY, sth May. ■■'■ There are many people who are convinced that had the Federal Government realised the difficulties that could have been, "placed in-its way it would not have adopted the Financial-Agree-ment Enforcement Act which has meant practically that a receiver has been placed in New South Wales. Be that as it may, there has been no slackening on the part of the Federal Government in its determination to use every ounce of its power to force the payment of the defaulted interest which at the end of this week totalled £3,000,000. The latest default occurred on Tuesday, and was on. account of interest due on Treasury Bills issued in Australia! All demands for the payment of any part of the sum ha^e been ignored. Mr. Lang has nothing to say. "While the greatest crisis in the history of the State loomed the State House considered only trivial matters, its business one 'day this week comprising—(l) To exempt schools of art from seizure for debt. (2) To arrange the fees of the Nurses Registration Board. (3) To withdraw a subsidy of £6000. from certain municipal councils. (4) To amend the Pharmacy Act. No mention is ever made by Mr. Lang or any member of his Government to the seizure of the State's revenue, yet the Federal Government has found that every_ obstacle has been placed in its way in its endeavour. to collect sufficient Tevenue to meet the demand that has been made. True, certain taxation papers were handed over to the Federal Government this week, but they were practically useless and comprised the assessments that^had been served on a number of taxpayers who were'hopelessly k arrears with their payments to both the State and the Federal Governments.' rURTHBB POWERS. THa week the Federal Government realising that its powers were insuffi1? eient, introduced new legislation which gives it authority to take the whole or any portion of any revenue that raighVbe collected by the State, even including that which comes into the coffers of the State through the Kailway and Tramway Departments. The penalties for obstruction were increased and now run aa high as a fine of £2000, or imprisonment for three years,; or both. Federal authority, is absolutely supreme, and it would seem that sooner or later Mr. Lang must bow to the inevitable.; No one knows what he will do; for even his Ministers are not in his confidence. One Minister, however, declared that there would be no election until the term of office expired. It would seem that Mr. Lang is staking all on a favourable decision from the Privy Council enabling him to abolish the Legislative Council. In some quarters it was anticipated that the Governor would recall Mr. Lang's Commission, and so bring about a dissolution and an election. That little can be expected from thjs quarter was made clear by the Governor himself this week when he waa replying to a welcome accorded him at a country town. The Mayor had referred to the critical period through which New South Wales was passing, and had expressed the hope that His Excellency would find a solution of the present trouble. «I want to point out," said the Governor, "that it is not for the Governor of the State to find a way out. That is for the people to do. As the country has had self-government for seventy-five years, and the people accepted responsibility of self-gov-ernment, it is for the people to find a way out. Of course, I will help in any way that I can, and you all know that I will be only too pleased to do that."

Giving the reason for his more drastic measures, the Prime Minister (Mr. Lyons) said that the attitude of New South Wales was damaging the whole of the Commonwealth. If it continued without further cheek the damage might be irretrievable. It was therefore the duty of the Commonwealth Government to take all the power within its grasp so that the drift could be stopped as quickly as possible. As far as the rail and tram revenue was concerned, the Federal Government would :take only sufficient to pay the interest