RELIEF WORKS

Evening Post, Volume CXVII, Issue 111, 12 May 1934, Page 21

RELIEF WORKS

AUSTRALIAN CONFLICT

COMMONWEALTH AND STATES

(From "The Post's" Representative.

SYDNEY, April 26. Another conflict is brewing between the Commonwealth and State Governments. Iv its basic-wage judgment, delivered last week, tho Federal Arbitration Court said that although unemployment was decreasing, tho position was still causing anxiety. As a matter of fact, unemployment is one of the most serious problems which Australia has to face today. New South Wales is giving the matter serious attention, and its afforestation scheme, with encouragement in the use of local timbers, is an important step in the right direction. Most of the States, however, find themselves hindered by lack of finance, and thexe has been an inclination to lean still more heavily on the Federal Government. Last week Sir Henry Gullett, a former Federal Minister, said that the Federal Government should do more in the way of unemployment relief, and his utterance in this connection has been eagerly seized upon by the States.

The Federal Government is riot favourable to the suggestion that there should be greater Federal relief grants, and it will be called upon to define its attitude at the next conference with State representatives. The Commonwealth holds that its financial position will not allow any direct grant from revenue foi" unemployment relief. It is certain that any budgetary improvement at the end of the current financial year will be small, and tho Commonwealth has deficits of £17,000,000 to [ consider. It is claimed 'that any possible grant by the Commonwealth would bo so small "that it would not relieve the position very materially.

The Commonwealth has always contended that unemployment is a direct responsibility of, the States. It has kept out of the loan markot to facilitate borrowing by tho Loan Council on behalf of the States for relief work. Tho Commonwealth attitude will 'be strongly opposed .when the Premiers I meet-to discuss the loan works for tho next financial year. A conference for this purpose must be held either in May or early: in June. . The reliof works programmo agreed to by the seven Governments for 1933-34 was £17,346,000, of which, the Commonwealth share was only £326,000. , The States have always strongly opposed the Federal contention that unemployment was thoir responsibility, and have repeatedly complained because tho Tedoral Government has placed tho burdeu almost wholly on them. It is pointed out that this policy has enabled tho Commonwealth during the depression to keep its floating debt down at the expense of the States, because the money borrowed by the Loan Council for Government works has boon nearly all debited to the States. . If the Commonwealth took a fair share, the States would bo relieved of much of the strain of tho depression.