N.S.W. AFFAIRS

Manawatu Standard, Volume LII, Issue 69, 20 February 1932, Page 7

N.S.W. AFFAIRS

FEDERAL GOVERNMENTS ACTION INTEREST AROUSED. MR LANG TAKING LEGAL ADVICE (United Press Association—By Electric Telegraph.—Copyright.) SYDNEY, Feb. 20. The Federal action against the New South Wales Government is the main topic of conversation in the city toIhe Sun newspaper, in an editorial, ooncludes: “The community wonders whether it is now seeing the real objective of the notorious Lang Plan, which flowered in falsity and seems likely to bear its fruit m destruction and disaster.” The State Premier, Mr Lang, has declined- to comment on the f ederal Government’s move, but it is understood that he is taking legal advice. BILL EXPLAINED. DEBATE ADJOURNED. CANBERRA, Feb. 19. As the Federal Labour Party, as well ns the Country Party, give the Financial Agreement Enforcement Bill their fullest support, the immediate passage of the measure is assured. Any attempt at obstruction probably will be supported by the Beasley (Lang) group of five. The Government, however,' realises that this by no means spells a simple ending of its difficulties, legal and constitutional, which must be faced. For the first time, since the Federation the. Bill claims the right to exercise powers that never previously have been regarded as coming within the ambit of Federal administration. Supporters of the Ministry welcome the measure chiefly as an indication that the Federal Government is determined to act firmly to. end the present situation in relation to the Commonwealth and New South Wales. Explaining the Bill, Mr J. G. Latham, Attorney-General, reviewed the occasions on which Mr Lang had defaulted. The Bill aimed at enforcing obligations already existing. He 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 a 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 and was subjected to interruptions by the Beasley faction. The debate was adjourned until Wednesday. Senator Rae, a Labour supporter, bitterly attacked the Commonwealth Government in the Senate. Ho said that New South AValos 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. N.S.W. STOCK. LONDON, Feb. 18. In the House of Commons to-night, members asked questions relating to New South Wales stock. Mr 0. Lewis (Conservative) asked if the Secretary of the Treasury were aware that the interest on certain of these securities was in arrears, and what steps were being taken to remove them, from the Treasury trustee list, or otherwise warn wouldbe investors of the risks attending the holding of such securities. Mr E. J. Itamsden (Conservative) asked whether in view of the defaults the Treasury, would lay the matter before the Ottawa Conference with a view to agreeing on amendments of the Colonial Stock Act to meet such cases. Mr A. W. Russell (Conservative) asked if . the Secretary of the Treasury, under the powers defined by the Colonial Stock Act, would obtain funds to pay interest where there had been defaults. Major W. E. Elliot, answering said: “I am glad to say that I understand the necessary funds are now being made available in London. In the circumstances the need for action on the part of the Treasury does not arise. The stocks will remain as before, as the interest is being paid.” INSURANCE DEPOSITS. MR LANG FORESTALLED. Received February 20, 8.5 a.m. CANBERRA, Feb. 20. Tho Insurance Deposits Bill mentioned in the Governor-General’s speech was introduced in the Senate Inst evening and read a first time. It forestalls Mr Lang’s similar measure. It prohibits State Governments collecting deposits from insurance companies, which must in future pay them to the Federal Treasurer either in cash or approved money securities.