HEAVY DEFAULTS IN N.S.W.

Timaru Herald, Volume CXXXVI, Issue 19156, 12 April 1932, Page 7

HEAVY DEFAULTS IN N.S.W.

FEDERAL GOVERNMENT ACTS PROMPTLY DEMAND ON BANKS FOR FUNDS United Press Association—By Electrio Telegraph—Copyright (Received April 11, 7.45 p.m.) SYDNEY, April 11. About ten o’clock to-day, the Bank of New South Wales, the Commercial Banking Compahy of Sydney, and three other banks received instructions from the Commonwealth, requiring them to pay to the Commonwealth, all funds of the New South Wales Government, now in their possession, or which is received by them in the future. The instruction covers moneys received from motor licenses, entertainments taxes, state lottery (other than cash required for prizes). In the circumstances, it will be extremely difficult for Mr Lang to operate by cheque or receive payments by cheque. It is regarded as certain that he will direct all moneys due to the State to be paid into the State Treasury. If such is done, no money for cheque purposes would be available at any trading bank specified in the proclamation. Thus, for the moment, the the State has apparently no other resort than cash payments. NEW SOUTH WALES MUST PAY. PROMPT MOVE BY FEDERAL CABINET. United Press Association—By Electrio Telegraph— Copyright CANBERRA, April 11. All the Banks in Australia will be required forthwith to hand over to the Commonwealth any moneys held on behalf of the New South Wales Government. Notice to that effect has been sent out by the Commonwealth Government, under the provision of the Financial Enforcement Act. The notices cover also any moneys received by the Banks while the garnished proclamation is in force. It is expected that a proclamation will be issued to-day specifying that State revenue from racing clubs shall be paid to the Commonwealth instead of the State. It is stated in political circles that the Commonwealth Government may issue a further proclamation bringing into operation the penalty clauses of the Financial Enforcement Act. Millions in Default. The default to the Commonwealth by New South Wales totals £2,021,390. A certificate has been furnished by the Auditor-General to this effect. Drastic Measures. A meeting of the Executive Council will be held in Melbourne on Monday, at which regulations will be made calling on State officials to make available to the Commonwealth all documents relating to income taxation, both State and Federal. It is officially announced that the Commonwealth received £22,000 from State income taxation under the Enforcement Act. A special Gazette, issued at midnight, empowers the Commonwealth to attach £1,362,346 of additional State revenue. FURTHER LEVIES MADE. MANY CLASSES OF TAXES AND FEES CLAIMED. United Press Association—By Electrio Telegraph— Copyright (Received April 11, 11.30 p.m.) SYDNEY, April 11. A new proclamation issued to-night by the Commonwealth attaches rail and tram revenue, totalisator profits, bookmakers’ fees and entertainments. MR LANG HITS OUT. STRONGLY SUPPORTED BY STATE SERVANTS. United Press Association—By Electric Telegraph—Copyright (Received April 12, 12.45 a.m.) SYDNEY, April 11. The Premier (Mr Lang) broke his

silence to-night. Broadcasting from the Trades Hall 2KY Station, the Premier dealt with the circumstances of the “raid on this State by the Commonwealth Government.” He said it was not money the Commonwealth wanted. It was a barefaced attempt to harass the Government and remove it from office. He claimed his Government could win, if it kept on fighting. It was certainly not going to weaken. He accordingly urged the Labour supporters not to do so. The New South Wales Government had taken up the attitude that it was temporarily unable to meet its overseas debts, and required postponement. Mr A. C. Willis (AgentGeneral in London), had tried to arrange postponement, but had been unable to do so owing to the Commonwealth’s interference. The Commonwealth was now anxious to take it out of the people’s hide. Mr Lang contended that Great Britain, France, Belgium and Roumania were not meeting their interest. They won the war, but the countries that

lost the war had obtained postponement, Another Counterstroke. The Premier (Mr Lang), Instructed the railways’ and tramways’ officials to pay all the cash received direct to the State Treasury, and not bank it. The rail revenue* is approximately £260,000 a week and the tram revenue £70,000. The rail officers and salaried staff carried a resolution defying the Commonwealth. "We recognise the State Government as our only masters," they said.