COUNTER MOVES BY MR LANG

Timaru Herald, Volume CXXXVI, Issue 19155, 11 April 1932, Page 7

COUNTER MOVES BY MR LANG

OMINOUS SILENCE IN STATE AWAITING MOVE BY FEDERAL CABINET United Press Association—By Electrlo Telegraph—Copyright (Received April 10, 5.5 p.m.) SYDNEY, April 10. The Federal Government has not vet taken any further definite step to counter Mr Lang’s obstructive actions Officials worked yesterday in the Taxation Office, the doors of whien wa-e locked up on Friday, hut the nature of their employment there is not stated. In the meantime, Mr Stevens, the new leader of the State United Party, and former Treasurer, visited Melbourne and conferred with the Federal Ministers. Thus a week of the most melodramatic happenings in the political history of the State closed with no suggestion of compromise. The citizens await the Commonwealth’s next move with keen interest. The Premiers meet next week in conference, at Melbourne, and Mr Lang proposes to attend. In the meantime income tax payments are being made freely to Federal officers at the Commonwealth bank. Federal Cabinet’s Caution. The “Telegraph” says that the action of Mr Lang in closing certain sections of the Income Tax Department did not draw the Federal Government into quick action. A high Cabinet Minister indicated that the Federal Government would act first and announce afterwards any move against Mr Lang’s rebellious measures to prevent the collection of State and Federal taxation. The Enforcement Act provides a heavy penalty ffcr breaches of its provisions, and Mr Lang could be prosecuted under these if he hampered the operation of the Act. It is unlikely that such a prosecution will be laupched at present, said Mr Lyons, adding that for the present the Federal Authorities were awaiting official advice from Mr Lang about what steps he was taking. Immediate action is being taken by the Commonwealth Government to obtain another certificate from the Auditor-General to cover the extra amount of £1,110,000 involved in the April default by Mr Lang. Official Denial. Mr Lyons denied the “Labour Daily" report that the Federal Government contemplated seizing the people’s savings in the Commonwealth Bank to liquidate the State default. He said: “There is not the slightest foundation for this malicious report.” DEFIANCE OF AUTHORITY. PROTEST FROM WESTERN AUSTRALIA. United Press Association—By Electric Telegraph—Copyright PERTH, April 9. “It is most amazing,” said the Premier, Sir James Mitchell, when referring to Mr Lang’s action. “He cannot be allowed to defy the authority of the High Court any more than any other citizen. His attitude damns Australia.” SCOPE OF NEW ACT. BASED ON CONSTITUTION OF FEDERATION. The Act was based-on Section 105 a of the Constitution, and provides for the Commonwealth to assume direct liability to the bondholders for the payment of principal and interest on debts taken over by the Commonwealth from the States. Accordingly, the Act, by Clause Four, proposes to accept a direct liability to the bondholder, and to give the bondholder a right to sue the Commonwealth in respect of both principal and interest. It also makes clear the right of the Commonwealth to sue the State for the excess payments due by the State over and above the per capita payments which, under the agreement, the Commonwealth is required to find. The methods laid down to ensure compliance by the States with the obligations imposed on them by the agreements provide a means of ensuring payments to the Commonwealth of certain selected revenues due to the States, and to make available to the Commonwealth other moneys raised for or belonging to the State. Under Clause Five, the Auditor-General has the function of supplying to the Federal Treasurer at the close of each financial year, and at any other time when requested by the Treasurer, a certificate setting forth the amount of money then due by any State to the Commonwealth under or by virtue of the financial agreements and details of the items comprised in that amount. Part Three provides means of enforcement against the specified revenue of the State, and applies after Parliament has carried a resolution, which must be moved by a Minister, that enforcement shall be carried out. Payment to the Commonwealth has the effect of a discharge to the taxpayer of his liability to the State, while payment to the State does not discharge that liability. Penalties are imposed for payment by a taxpayer otherwise than to the Commonwealth, and on a State Minister, officer, or employee, for attempting to secure payment to the State.

The members of the Federal High Court are: The Chief Justice( Sir Frank Gavan Duffy), and Judges the Hon. George Edward Rich, the Hon. Hayden Erskine Starke, the Hon. Owen Dixon, the Hon. Herbert Vere Evatt, and the Hon. Edward Aloysius McTiernan.