MR LYONS’S ACTION.

Star (Christchurch), Volume XLIV, Issue 375, 17 March 1932, Page 1

MR LYONS’S ACTION.

Commonwealth to Attach State Revenue. PLAN TO MAKE N.S.W. PAY. United Press Assn.—By Electric Telegraph—Copyright. (Received March 17, 11.30 a.m.) CANBERRA, March 17. The clash between the Commonwealth and the Government of New South W’ales is rapidly nearing its climax. The Prime Minister, Mr J. A. Lyons, in the House of Representatives to-day, moved a resolution under the Financial Agreement Enforcement Act giving the Commonwealth power to attach £924,082 from the revenue of New South Wales. The sources from which this sum may be obtained comprise any of the following:—lncome tax, betting and totalisator taxes, motor taxation, entertainment taxation and lottery receipts after the deduction of prizes. Mr Lyons told the House that sufficent money to' cover the N.S.W. default in interest could be attached from the State income tax during the next eight weeks. He added that if the State Government maintained its present attitude it would default to the extent of £4,500,000 of overseas interest by June 30, while default in interest due internally would bring the total to £6,000,000. Mr Lyons was subjected to violent interjections from the Labour Opposition. The resolution was agreed to. The Senate is now debating the resolution. Validity Questioned. The Full Bench of the High Court of Australia will sit to-morrow in Melbourne to determine the validity of the Financial Agreement Enforcement Act. Application has been made by the Government of New South Wales for an injunction restraining the Commonwealth Government from enforcing the provisions of the Act, and asking for a declaration that the Act is ultra vires and invalid. The Financial Agreement Enforcement Bill was adopted in the Senate. It is understood that as the High Court to-day will hear argument in the matter, the Federal Ministry will not issue a proclamation to-day. The State of New South Wales coun-ter-claims for a total amount of £2,346,655 for money payable to the State under the Federal Roads Agreement and other accounts.