THE COMMONWEALTH REFERENDUM

Hokitika Guardian, 23 November 1928, Page 2

THE COMMONWEALTH REFERENDUM

Tlic rcTercmlum was in respect to a scheme for consolidating loans wliicli it is expected will reduce the- enormous hill Australia has to meet lor interest on money borrowed. Australia , taking the Commonwealth and the States, has the huge debt oi £1.040,<>:):>.(«) to carry, and upon it the nation pays the tremendous sum of ,£55,000.000 each year in interest. The total taxation of • Australia is £87.000.000. that, when £55.000.(>OO is deducted, there is not much lelt for social reform or developmental works. If the Federal Government can mann're to cut 1 per cent ol inteiest on the dit. a. saving of £10,000.000 a year, equal to tin- whole federal income tax, will he ofl'e-tcd. That sum would then he available for social reforms, Government works, or tax remissions. The referendum aims to make something of that kind possible. , Last year the Federal Government was able to place before the State's a scheme which was acceptable to ah States. It was ratified by four Labour Governments and two non-Labour ones. It provided for sinking funds to wipe out the debt and tor . a loan council on a permanent basis to bid in ~*,O money markets for money to servo all Governments. That will eliminate the possibility of the scveti Governments competing with one anorlier and running up the interest rates. A “Yes” vote will confirm what the best financial and political brains of the Commonwealth have already agreed upon under that scheme.