COMMONWEALTH FINANCE

Otago Witness, Issue 3768, 1 June 1926, Page 32

COMMONWEALTH FINANCE

FEDERAL MINISTRY’S PROPOSALS. MELBOURNE, May 26. Almost a deadlock was reached at the financial conference of all the States The representatives raised the strongest objections to the Commonwealth Government’s proposal for abandoning the per capita, payments and evacuating the field of income taxation. The case for the States was based chiefly upon the contention that they had a moral, if not a legal, right to participate in the Customs and Excise revenue. This claim the Federal Ministry vigorously contested. After all the Premiers and the Federal Treasurer had spoken, it seemed as if a breakdown was inevitable. Eventually, at the suggestion of Mr Bruce, the conference agreed to resume this morning, when the States will be asked to say definitely whether they base their claims for a continuation of the per capita payments upon moral right. PROPOSALS NOT ACCEPTABLE. MELBOURNE, May 26. The State delegates to the financial conference met and after discussion informed Mr Bruce that the delegates had unanimously decided that the Federal financial proposals were not acceptable to the States Mr Bruce then suggested that the conference might consider the practical Metails of finance and taxation on the assumption that the States were accepting and had not rejected the Federal proposals. The conference was then resumed. FAILURE OF CONFERENCE. MELBOURNE, May 26. The financial conference concluded after Mr uruce declared that the Federal Government was determined to go on with the scheme unless it was shown that the proposals were impracticable. Mr J. Allan (Victoria) suggested that another conference should be held next year and the proposals resubmitted, but Mr Bruce refused to accept the suggestions. The conference then ended.