AUSTRALIAN FINANCE

New Zealand Herald, Volume LXXI, Issue 21938, 23 October 1934, Page 5

AUSTRALIAN FINANCE

LOAN WORKS PLAN PREMIERS' CONFERENCE [FROM OI7R OWN CORRESPONDENT] SYDNEY, Oct. 12 Now that the elections are over tho Federal Government is making arrangements for another Premiers' Conference, at which the financial position of all the Governments will Again bo reviewed. These reviews have taken place so often during the past few years that they fail to create much public interest, but they are necessary in order to see that the various Governments keep within the narrow confines of the Premiers' Plan. So far disciplinary action has been used only on one Government —the Lang Government of New South Wales. All thti others appear to have made honesi» efforts to keep their deficits within the fixed limits. The principal business of the next conference will be the consideration of finance for the loan works programme of £22,643,000 agreed upon for 1934-35 at the June meeting of tho Loan Council. At that time it wan stated that £11,000,000 whs in hand for loan works, representing fund:! available from the last internal loan,, and from, cash balances carried forward. This means that more tham £11,000,000 will have (o be raised by way of loans during the next nine monthg, and it is certain that the* public of Australia will be asked to subscribe the whole of the amount. As there arc ample idle funds iia the Codimonwealth it is not anticipated that there will be any difficulty in raising the loan. It is more likely Jhafc the loan will be oversubscribed, as was the last. An additional amount will havo to be provided from loans equivalent to the agreed States' deficits of £5,800,000 for the current financial year. The Treasury bills issued to meet these deficits will then be funded. The iloan works programme for the various States is as follows: —Victoria, £2,827,000; New South Wales, £10,000,000; Queensland £3,400,000; South Australia, £1,700,000; Western Australia, £3,070,000; Tasmania, £896.,000; Commonwealth, £750,000.