AUSTRALIAN PROBLEM

Evening Post, Volume CXXII, Issue 68, 17 September 1936, Page 11

AUSTRALIAN PROBLEM

CONFERENCE FAILS

INTER-STATE TRADE

REFERENDUM PROSPECTS

(Fronr "The Post's" Representative.) ' ' SYDNEY, September 10.

Representatives of South Australia, Western Australia, and Tasmania, the so-called "smaller" States, refused, at a conference in Adelaide of Federal and State Ministers, to co-operate with the other three States in the holding of a referendum to sanction an amendment of section 92 of the Federal Constitution to confer full trade and commerce power on the Commonwealth. The amendment is necessary as a result of the Privy Council decision in the now-famous James case, to- enable the continuation of marketing schemes for various Australian primary produce. Despite the failure of the Adelaide conference, the Federal Ministry will continue with its plans for holding a referendum. The referendum will cost at least £100,000, and many of the Ministers consider it is doomed to failure. It is generally regarded that the Ministry was forced to this decision by a bold declaration from Dr. Earle Page, Minister of Commerce and Leader of the Country Party, which has been incensed by the disastrous turn of events. The party foresees the ruination of its jig-saw and delicately-poised edifice of production and marketing unless the referendum, is taken and carried. Dr. Page forced the Ministry's hand by declaring, in a public speech, that a referendum had been decided on.' This is the kind of declaration which normally would come from the Prime Minister. Dr. Page, in his speech, said that the Privy Council decision put Australia in a position without parallel in the world.:- At a-time when all the other nations of the-world were organising their, industries, Australia was in the extraordinary position of not being able to do so.-"There is only one thing to1 do," said Dr. Page, "that is; ask the people of Austrajia to fill in this gap. This we propose to do by referendum, and. ask them to give us the same power, we thought we had. Primary producers have been deprived of .part of their liberties; . I will leave, ho stone unturned to bring back to the Commonwealth Parliament the fullest powers to deal with marketing. Some people have suggested that this should not be done because of the great difficulties to be overcome. Some people show the white flag before a shot has been fired in the battle, but I will carry the fight out to its uttermost. All the men who have fpught for great liberties did not have their victories handed out on a plate. I will not haul down my political flag while I have breath in my body. This is going to be a great fight, and a very heavy one, too." PARTY IRRITATIONS. The Prime Minister (Mr. Lyons) followed this declaration by informing members of the United Australia Party that he was of opinion that the holding of a referendum was the only satisfactory' solution of the problem. Members of the party generally, signified their agreement with this view, and although no formal decision has yet been made, the submission to the Parliament of proposals for Constitutional amendment, which, if approved by- Parliament, will later be submitted to'the'people at a referendum, is considered to be certain. The form of the proposed amendment has not yet been decided on. It is expected that arrangements will be made for the holding.of a referendum early in 1937. There is, however, considerable resentment in the United Australia Party that 'the other, wing of the composite Ministry forced the Government's hand, and the irritation between these political partners has increased. There is even a belief in Canberra that the ultimate result may be the breakingup of the 'composite Ministry. The Country Party is being pressed hard by primary producers' organisations clamouring for the referendum. The Government will aim at having the question put to .the. people in a nonparty atmosphere so that there snail be no party significance in the peolMe s decision. That'will not be easy. The Labour Party will probably oppose the referendum on the cry of "dearer food for Australian consumers. That will almost certainly spell the defeat of the referendum, and the United Australia Party is fearful of the result of such a defeat on its prospects at the General Elections due later next year.