COMMONWEALTH AND MR LANG.

Manawatu Standard, Volume LII, Issue 108, 7 April 1932, Page 6

COMMONWEALTH AND MR LANG.

Now that the High Court has upheld the validity of the Financial Agreements Enforcement Act, passed by the Commonwealth Government to bring' the Premier of New South Wales (Mr J. T. Lang) to book, the conflict between the two parties will speedily reach a climax. The Commonwealth has power under its legislative enactment, when a State defaults in payment of its debts, for which the former is in law liable, to impound certain revenues accruing to the State concerned. Mr Lang has defaulted in payment of interest abroad and the Commonwealth Government has stepped into the breach. Recently, in compliance with the now statute, the necessary resolutions to take action against the New South Wales Government were passed by both Houses on the presentation of the Auditor-General’s certificate showing the amount in default. The liability of the State to the Commonwealth, which, according to the certificate, it was ' proposed to garnishee, was £924,082, comprising £173,644 interest due in New York and various amounts due in Britain and in Australia, making £1,172,426 in all. Certain deductions, including- £243,118, a monthly Commonwealth contribution under the Financial Agreement Validation Act, reduced the total to the figure stated (£924,082). It is evident, in the light of cablegrams this week, that Mr Lang w-ill resist his State’s creditor to the fullest extent. It is even _ suggested that physical force w-ill be used to prevent the Commonwealth obtaining the revenues, and that officials of the State, if they disobey the leaders of the Party in power, will suffer by dismissal. That is plainly flouting the Commonwealth law, and Mr Lang, it has been stated, can only do so if he declares himself insurgent. It is a sorry business with the outcome still obscure. The Commonwealth obviously cannot retract, and Mr Lang must realise that his tenure of office w-ill be imperilled if he compromises, as he is being- spurred on by the Trades Hall. •