CONFERENCE OF PREMIERS

Otago Daily Times, Issue 13206, 13 February 1905, Page 5

CONFERENCE OF PREMIERS

THE STATE DEBTS. Press Association—By Telegraph—Copyright. lIOI3ART, February 11. (Received Feb, 11, at 9.37 a.m.) Tho State Ministers in caucus drew up their reasons for refusing Sir G. Turner's original proposals to federalise the Slate debts. Tho chief are that, while the States were greatly influenced by patriotism in entering tho Federation, their first condition must be their financial stability; that sufficient time had not yet expired to ascertain tho effects of federation; the hypothecation of the railway revenue would lead to the assumption and controt o£ the railway ; that the States could not band their control of borrowing over until the extent of the Commonwealth borrowing was absolutely defined.

Sir G. Turner's latest proposals will be considered by the State Ministers before the Joint Conference deals with them. At present the prospects are hotter for a settlement, though a difference of opinion still exists. Ono State Minister described the amended proposals as "sensational," and another as an "almost right-about-face." There is, however; a general disposition to regard them as a fair compromise.

As to the bookkeeping period, Sir G. Turner said that there would be a serious injustice both to New South Wales and Westralia in establishing at once a common purse. Botli States would have to pay several hundreds of thousands of pounds, which would be opened for general distribution. He therefore proposed that Westralia should contribute at the rate of 10 per cent, for 10 years, and New South Wales at the rate of 20 per cent, for five years. At the ond 1 of those periods they would fall into line with the oilier States. Willi some of the States, however, it is a question whether this differential treatment will not be challengeable on constitutional grounds. Sir 6. Turner is seeking a legal opinion. The matter of the appointment ot State Governors was dropped off the order paper, the Federalists pointing' out that it was exclusively an affair for the States. OLD-AGE PENSIONS. February 12. (Received Feb. 13, at 0.23 a.m.) The Conference decided that it was desirable the States should themselves abandon differential and preferential rates, and thus savo the expense of establishing an interState Commission. Mr Reid introduced' an old-age pension scheme. Sir George Turner explained that for a scheme estimated on' the New South Wales basis £1,600,000 would be required, while oil the Victorian basis £1,000,000 would be needed. The idea, ivns to adopt something between the two. He thought this couldl be "done without lowering life amount paid in New South Wales, where the administration was very expensive. It waa a question for the States which had no pensions whether they woUld recognise the inevitable and endeavour to effect an arrangement or whether they would wait until the Commonwealth legislated over their heads. There was a risk that it might be accompanied by a system of taxation that might be distasteful to some of the States. Most of the money required could be obtained from kerosene and tea diities. If the Federation took over the tobacco monopoly much of the money could be obtained from that source. The debate was adjourned,