FINANCIAL SIDE.

Star (Christchurch), Volume XLIV, Issue 735, 12 April 1933, Page 5

FINANCIAL SIDE.

Problems for Secessionists to Consider. LOSS OF CONCESSIONS. Per Press Association. INVERCARGILL, April 11. Referring to the secession referendum in Western Australia, Sir Henry Braddon, during an address to Rotarians to-day, said: “ Although the vote has been taken, the question arises, How can Western Australia get out? What is going to happen to people who may say they don’t care, they are going to get out? Let us look at some of the issues that will be raised, even if they do succeed in separating. “ Take finance. Western Australia gets a grant of £500,000 from the Federal Government towards disabilities suffered, and with other concessions she benefits to the extent of approximately £700,000 from federation. If she secedes, what happens? Not only will this gain disappear, but she will have to carry £10,000,000 of short-term indebtedness. This is at present guaranteed by the Commonwealth Bank and the Federal Government. It is questionable if this guarantee would be continued after secession. There is also £6,000,000 to renewed within two years. Western Australia could not expect the same terms without the previous backing. Thus it can be seen that the people who so gaily used their vote are facing quite a serious situation, for, should they actually secede, the}’ will be greatly hampered financially.” Sir Henry said he did not think that the federation would be broken.