PREMIERS CLASH OVER PAYMENTS TO AUST. STATES

Gisborne Herald, Volume LXXVII, Issue 23352, 7 September 1950, Page 7

PREMIERS CLASH OVER PAYMENTS TO AUST. STATES

CANBERRA, Sept, 6. Mr. R. G. Menzies clashed sharply with the six State Premiers at the opening session of the Premiers’ conference today.

The Premiers pressed i strongly for bigger payments to the States as compensation for their vacating the income tax field under the uniform tax scheme,

The Labour Premier of New South Wales, Mr. L. J; McGirr, demanded that the Commonwealth should restore to the States their opportunity to levy income tax. He was supported by the Liberal Premier of South Australia, Mr. T. Playford, but not by the Labour, Premiers of Queensland and Tasmania. Mr McGirr charged that the Federal Government concealed its true Budget position by paying for capital works out of revenue and accumulating reserves in the social welfare fund. He moved unsuccessfully for the appointment of Royal commissions to, inquire into financial and other fun-tions of the Commonwealth and States. Mr. Menzies replied that last year the Commonwealth revenue from income tax on individuals totalled £93,800,000 and the total payment to States was £101,500,000. The States failed in their efforts to secure greater grants than last year. The Commonwealth will distribute £70.300,000 among them—only £7,800,000 more than last year. The demands by the Premiers were for more than £100,000,000.