MR. LANG’S RETALIATION

Greymouth Evening Star, 9 April 1932, Page 7

MR. LANG’S RETALIATION

TAX-OFFICES LOCKED ASSESSMENTS WITHHELD [BY CABLE—PRESS ASSN.- —COPYBIGHT.] SYDNEY, April 8. The first retaliatory move by Mr Lang against the Commonwealth was launched to-day. The officers of the Taxation Department, on their arrival at the offices, found that the doors were locked on the three floors where the assessfnents and records are kept; and the issue of all assessments, both Federal and State, has been discontinued. Overnight the locks had been changed, and the keys are reported to be held by Mr Lang. This move automatically causes a cessation of the issue of all assessments, and it prevents the Federal authorities from gaining access to the records of those assessments that have already been issued. Scores of officers were told that they must take leave. Mr McMahon, the Commissioner of declined to make any statement. The Federal Government has the power to order Mr Lang or Mr McMahon, under the pain of a severe penalty, to open the doors, and to instruct all of the employees to return to duty, while the people who have already received assessments are obliged to pay the taxation due to the Commonwealth promptly. An interesting feature was a I'ush of taxpayers to pay their taxes at the Commonwealth Bank in accordance with yesterday’s proclamation. Hundreds sought the distinction of being the first to take advantage of the new order of things, special arrangements having been made to cope with the situation.

It is reported that Mr Lang, during the week, withdrew a further quarter of a million pounds from the Bank of New South Wales, and transferred it to the State Treasury vaults-

MR LYONS RETICENT

MELBOURNE, April 8

After the Federal Cabinet had its meeting to-day, the Prime Minister, Mr Lyons, stated that he had no comment to offer in regard to Mr Lang’s action in closing the New South Wales Taxation offices and impounding the assessments. MR LANG’S PROTEST. (Received April 9, 10.30 a.m.) , SYDNEY, April 8. Mr Lang has written to Mr Lyons complaining of the Commonwealth having repudiated the agreement of 1923, whereunder New South Wales undertook to act as collecting authority for Federal and State land and income taxes. He has no alternative but to cancel the agreement forthwith.

Mr Lang announced to-night that he is attending the Premiers’ conference next week, to discuss unemployment.

LIABLE TO PROSECUTION.

SYDNEY, April 9.

The “Telegraph” says:—The action of Mr Lang in closing certain sections of the Income Tax Department did not draw the Federal Government into quick action. A high Cabinet Minister indicated fhat the Federal Government would act first and announce afterwards in any move against Mr Lang’s rebellious measures to prevent the collection of State and Federal taxation.

“The Enforcement Act provides a heavy penalty for breaches of its provisions, and Mr Lang could be prosecuted under these, if he hampered the operation of the Act. It is unlikely that such prosescution will be launched at present,” said Mr Lyons, adding that for the present the Federal authorities were awaiting official advice from Mr Lang about what steps he is taking. i Immediate action is being taken by the Commonwealth Government to obtain another certificate from the Auditor-General to cover the extra amount of £1,110,000, involved in the April default by Mr Lang. Mr Lyons denied the “Labour Daily” report that the Federal Government contemplated seizing the people’s savings in the Commonwealth Bank to liquidate the State default. He said: “There is not the slightest foundation for this malicious report.” DIVISION OF STATE. SYDNEY, April 9. The demand for a referendum for the immediate division of New South Wales into three districts, represented by Riverina, New England and the Western movements, was decided upon by the executive of the United Party, at a special meeting, to consider the position. A telegram to this effect was sent to the Prime Minister, signed by Doctor Page, E. Body and Senator Hardy, the respective leaders of the three movements. “We dissociate ourselves from the disloyal', destructive acts of the Lang Government, and ask for constitutional machinery that will prevent a continuance or recurrence of such acts,” the telegram stated.

WESTRALIAN CENSURE.

PERTH, April 9.

“It is most amazing,” said Premier Mitchell, when referring to Mr Lang’s action. “He cannot be allowed to defy the authority of the High Court any more than any other citizen. His attitude damns Australia-”