State Governments Opposed To Federal Policies

Greymouth Evening Star, 16 December 1947, Page 4

State Governments Opposed To Federal Policies

(brom C. R. Mentlplay, Special Press Association Correspondent.) SYDNEY, December' 15. Only a few months ago the Chifley Government could count on the unquestioning support of. the. Governments of five of Australia’s six States. Now every State in the Commonwealth is at variance with the Federal Government on at least one important issue. This is the problem which Mr Chifley has taken with him on his well-earned holiday in New Zealand, and for which he must find a solution before he returns. Already there are predictions of reductions in income and sales tax, and more liberal allowances to the States under the single tax system to offset the growing unpopularity of the Federal Labour Government. The zenith of Labour power was reached when at the last Federal elections the Chifley Government was returned with a majority only slightly reduced. The South Australian Government, under Mr T. Playford, was then the only non-Labour Legis-

lature in the Commonwealth. Since then Western Australia and Victoria have joined the Playford Government, while the situation in. Tasmania is such that, without adopting the drastic measures of refusing supply, the Opposition is almost assured of winning an election in February. The desperation in Tasmanian Labour circles is shown by the news that a section of the caucus has been prepared to support as Premier Dr R. J. W. Turnbull, who has declared himself violently opposed to the Federal Bank nationalisation legislation. The Tasmarpan Liberals are confident that the bank nationalisation issue, plus the public reaction to the , allegations of corruption against the Premier (Mr R. Cosgrove) will be sufficient to swing the election their way. This would mean that four States would be actively engaged in the fight against bank nationalisation. In the strongly Labour States of New South Wales and Queensland the spirit of independence is abroad, and Mr Chifley can no longer look to them for a “rubber stamp” endorsement of his decisions. The McGirr Government in New South Wales is developing its own Rural Bank to provide active competition for the Commonwealth Bank on the demise of the private financial institutions. While Queensland has not declared its attitude in this matter, it is displaying individuality in another way. The Premier (Mr E. M. Hanlon) has resisted Federal and trades union pressure to make the Commonwealth a party in the control of the State coal resources, which include the rich Blair Athol field. All the States consider that under the single tax system they are receiving an inadequate share of disbursements. It is rapidly becoming clear that the most bitter opponents of the Federal Government in itsil nationalisation plans are the State legislatures, irrespective of then* political colour, and that they regard the struggle as a fight for their own existence.