STATE APPEAL

Wairarapa Daily Times, 18 March 1932, Page 5

STATE APPEAL

AGAINST FEDERAL ACT HIGH COURT HEARING. Press Association E'ectric Telegraph—Copyright XIELBOUENE, Thursday. The High Court of Australia to-day began the hearing of the New South Wales Government's application for an injunction restraining the Commonwealth Government from enforcing the provisions of the Financial Agreements Enforcement Act. The State Governen also asks for a declaration that the Act is ultra vires and invalid. Xlr J. A. Browne, .K.C., appearing for the New South XYales Government, argued that enforcement of the Act might prevent the New South XX’alcs Government carrying on. Even the unemployed might not be provided for. The Chief Justice, Sir Gavan Duffy: • ‘lt is not a question of the consequences. It is a question of what we are authorised to do.” The hearing was adjourned till Tuesday, counsel for the Commonwealth Government, Xlr XV. Ham, K.C., refusing to give an undertaking in regard to the Commonwealth’s intentions. PROCLAMATION DELAYED. CANBERRA, Thursday. Resolutions giving effect _to the Financial Agreements Enforcement Act having been passed by the House of Repreesntatives and the Senate/ the Prime Xlinister, Xlr J. A. Lyons, stated that it was unlikely the issue of a proclamation for the attachment of £924,08° from the New South A ales re'onue would be delayed for any considerable period. The Government, however, was prepared to wait a few days for the decision of the High Court in regard to the validity of the Act. _ Provided the Act is valid, the Premier, Xlr J. T. Lang, or his Ministers, become liable to a fine of £soo' and imprisonment for two years if they permit the pavinent of any income tax to the State after the issue of the proclamation. It will also be illegal for any person to pay money to the New South Wales collecting authorities. The State of New South A r ales 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.