CONFERENCE OF PREMIERS.

Otago Witness, Issue 3611, 29 May 1923, Page 21

CONFERENCE OF PREMIERS.

MELBOURNE, May 22. j The State Premiers’ Conference has opened. The question of income tax was ! discussed. Though a. final decision was not reached, it is understood that it was agreed, providing the Federal Govern rnent agrees to withdraw entirely from the sphere of income tax, that the States have practically decided to forgo the per capita payments by the Commonwealth to the States. May 23. J The Premiers’ Conference agreed to the j taxation proposed, which was in opposition to the proposal for Federal taxation on salaries of over £2OOO. The conference's motion included an offer by the States to pay the Commonwealth Government any surplus revenue received j under such an arrangement. The conference rejected the uniform gauge proposal, which involves the construction of a 4ft Bjin gauge from Port Augusta to Hay. At the Premiers’ Conference the Premiers submitted the States’ taxation proposals to Mr Bruce. It was proposed that the commonwealth retire from the field of income taxation, and contingent on this being done the States should relinquish their claims to any share of the Customs and excise revenue, and if necessary they would recoup the commonwealth. Under these proposals the amount payable in j each year by the several States will be determined in a conference with the Prime Minister. This arrangement will be embodied in a 10 years’ agreement between the commonwealth and the States. Mr Bruce rejected the proposal, stating that if the commonwealth withdraw from the sphere of income taxation and the per capita- payments were withheld, the commonwealth, in order to meet its obligations, would have to raise between £7,000.000 and £8,000,000. He added that for the past live years the Customs revenue had not covered t; tlie expenditure. There was no hope for years to come that the war expenditure would he less than £27,500,000, and Australia would be very lucky to collect, that revenue if the tariff | remained as it was at present. May 24. The Premiers' Conference adjourned till this afternoon to enable the State Treasurers to discuss means of overcoming the taxation impasse. The conference reaffirmed its previous decision to terminate the issue of tax-free loans after Decern her. May 25. The Premiers’ Conference agreed that the Federal Government should withdraw

a defined area from the field of taxation in lieu of per capita payments. Tha States Treasury officials are to determine the extent of the field to be evacuated. , It was also agreed to ask the British Government to co-operate with the Commonwealth's policy of immigration in the direction of giving substantial contributions towards the interest on loans for the States for tile settlement of immigrants. The conference agreed on one electoral authority, the Federal and the State statistical offices to propound the best scheme for adopting it. May 26. At the Premiers’ Conference Mr Bruce intimated that the Commonwealth Government was unable to undertake the unification of railways, but it was prepared to start on the interstate lines. The State Premiers opposed this, and the subject dropped. Air Bruce later will negotiate with the individual States. Air Bruce sa.id that the Commonwealth Government had decided to assume the full responsibility of lighting the harbours and the coast. He also intimated that the question of cadet training would be reconsidered in the next Estimates. The Premiers’ Conference decided that Anzac Day should be observed iu all the States on tire actual anniversary of the landing. May 27. The Premiers’ Conference adopted a resolution in favour of investigating tha electrical power sources of the various States with a view to their development on a standardised basis.