DEALING WITH DEFAULT

Hawera Star, Volume LI, 20 February 1932, Page 5

DEALING WITH DEFAULT

SURPRISE CANBERRA BILL FIEST DIVISION OF HOUSE GOVERNMENT’S BIG MAJORITY DEBATE OF MEASURE ADJOURNED Dulled Press Assereiataon —By Elecirlo lelegrupD Copyright..'» CANBERRA, Feb. 19. Tho debate on the Bill introduced to compel Mr J. T. Lang, Brenner of NewSouth Wales, to comply with the provisions of the financial agreement and to honour his obligations to the Commonwealth was adjourned until Wednesday. The Bill came as a complete surprise to the House. The Beasley group attempted to stonewall the introduction of the Bill when Mr Evens moved the adjournment of the Address-in-Rteply debate. This Jed to the first division in the new Parliament, the Government winning by GO votes to 6, their opponents being the five Beasleyites and a follower.

In further remarks made in moving the second reading of the Bill, the Prime Minister, Mr J. A. Lyons, said the total amount defaulted by NewSouth Wales in respect to interest due between February 1 and Februaary 4 of this year was £1,169,735. This included exchange on the necessary remittances and covered' the whole of the oversea interest due by the State since February 1. Mr J. G. Latham (Attorney-General) reviewed the occasions on which Mr Lang had defaulted. This Bill was aimed at enforcing the obligations already existing. Mr Latham said that when the financial agreement between the State Premiers was drafted this sort of thing on the part of New South Wales was foreseen; accordingly very special power was conferred upon the Commonwealth. The Government of New' South Wales had adopted the deliberate policy or practice of making agreements where benefit could be obtained and breaking them whenever it suited. Mr Latham spoke of the seriousness of default but was subjected to interruption by the Beasley faction. BITTER. ATTACK.

Senator Rae (Labour) bitterly attacked the Commonwealth Government in the Senate. He said New South Wales would not submit much , longer to tyranny and would take positive steps to secede from the Commonwealth. He declared that instead of New South Wales living upon the smaller States, as was generally supposed. the smaller States were living upon New South Wales. A.s the Federal Labour Party as wel-1 as the Country Pariy gives the Bill fullest support an immediate passage of the measure is assured. Any attempt at obstruction will be supported probably only by the Beasley group of five.

The Government, however, realises this by no means spells a simple ending of the difficulties, legal and constitutional, which must be faced. For the first time since the federation the Bill claims the right to the exercise of powers by the Commonwealth that have never previously been regarded as coming within the ambit of Federal administration. Ministerialists _ welcome the measure chiefly as an indication that the Federal Government is determined to act firmlv to end the present situation in relation to the Commonwealth and New South Wales. SYDNEY COMMENT.

The Federal Government's action is the main topic of conversation in Sydney to-day. The ‘‘Sun” newspaper’s editorial concluded: ‘‘The community wonders whether it is now seeing, the real objective of the notorious Fang plan, which flowered in falsity and seems likely to bear its fruit in destruction and disaster.” Mr Lang has declined to comment on the Federal Government’s move, but it is understood he is taking legal advice.

The dramatic developments in the Federal Parliament had no apparent effect on the Sydney Stock Exchange to-day except to restrict the turnover, which was below normal for a Friday. Commonwealth bonds were firmer all round.

The Insurance Deposits Bill mentioned in the Governor-General’s Speech at the opening of Parliament was introduced in the Senate to-day and read a first time. It forestalls Mr Lang’s similar measure. It prohibits the State Governments from collecting deposits from insurance companies, which must in future pay them to the Federal Treasurer either in cash or approved monev securities.