WILL PAY STATE’S DEBT

Taranaki Daily News, 3 August 1931, Page 7

WILL PAY STATE’S DEBT

COMMONWEALTH DECISION

REFUND by n.s.w. required

LANG GOVERNMENT’S PLANS

BILL TO REVIVE STATE BANK

By Telegraph—Press Assn.—Copyright. Rec. 5.5 p.m. Sydney, Aug. -. The Federal Government has arranged to meet interest payments totalling £632.000 due in London and New York by the New South Wales Government at the end of July. The Prime Minister, Mr. J. H. Scullin, found the Commonwealth Bank unprepared to make the necessary advance to New South Wales, so he agreed to meet the liability, but the State is asked to refund the amount as soon as funds arc available. The Commonwealth .Government has received a written assurance from Mr. Lang that he would assume responsibility for two overseas interest payments due by his State during the next two weeks.

It is understood Mr. Lang is preparing a Bill providing for the reopening of the State Savings Bank under trustees, political control to be eliminated. Financial backing will be required, and this will probably be discussed at the Loan Council meeting in the coming week. Mr. Lang declared that the Government had determined that the Savings Bank should be reopened as soon as arrangements for reconstruction could be made.

After the second reading speech of the Vice-President, Mr. Concannon, in the Council, tho Salaries Reduction Bill was adjourned until Tuesday. Mr. Concannon stated that the lower-paid civil servants would, suffer a salary reduction if the Bill did not effect the anticipated saving in Government expenditure. . The State Government has decided that the subsidy to the Railway Commissioner for the haulage of coal at cheaper rates shall be continued until December 31. The reversed decision is due to strong representations from the Miners’ Federation and the coal owners. Tho Lang Government has restored Mr. A. D. Kay to the Metropolitan Meat Board. He was originally a member of this board, being a Lang appointee, but the Bavin .Government removed him, since when Mr. Kay has been a prominent Domain Labour orator. His appointment is likely to cause a lively controversy.