Ltd., of Balmain, and Metters Ltd., of Sydney, the respondents being the Amalgamated Engineering Union. On April 20, the Commonwealth High Court decided that the New South Wales Act could not be applied to persons employed in industries covered by Federal awards, and the appeals of the three firms were upheld. The Chief Justice, Sir Adrian Knox, in his judgment, stated that sections 12 and 13 of the Forty-four Hours Week Act, 1925, sought to alter, and, to an extent, destroy, awards lawfully made under powers granted by the Commonwealth Parliament, within the meaning of section 109 of the Constitution Act, and to the extent of that inconsistency were invalid. Mr. Lang's attack upon the State Governor, and the difficulties arising from the forty-four hour week led to trouble in the Labour Party, which culminated in the resignation of Mr. Loughlin, Minister of Lands, not only from the State Cabinet, but from the Labour Party. Mr. Loughlin attempted to secure the leadership of the Labour Party in New South Wales, but the party caucus on September 15 resulted in a tie-vote. For a time Mr. Loughlin resumed his office, but, in November, he resigned a second time. In December the State Budget was re-introduced, and a tax of åd. a copy was imposed upon all newspapers and publications with a circulation of over 10,000. The State Government in Victoria was controlled during 1926 by a coalition consisting of Nationalists and members of the Country Party. The Victorian Budget, introduced on October 14, included a tax of 11⁄2 per cent. on bookmakers' turnover, estimated to yield 525,000l. a year. This took the place of an existing tax by means of a stamp duty upon betting-tickets. In South Australia, after the resignation of Mr. Gunn, Mr. Hill became State Premier. The South Australian Budget, introduced on November 2, included a super-tax of 10 per cent. on the existing income-tax, and a 50 per cent. increase on the land-tax. A transport strike at South Australian ports held up wool shipment during the closing months of the year. In Queensland, the General Election, on May 8, resulted in a majority for the Labour Party, the position of the parties being virtually the same as in the last Parliament. State trading was an interesting feature of Labour policy, and the report of the Commissioner on State enterprises in Queensland, published on October 14, disclosed a loss of 152,000l. on the year. The various enterprises were indebted to the Treasury for the following amounts: butchery shops, 113,6687.; produce agency, 16,380l.; fish supply, 28,3067. ; hotel, 7461.; cannery, 70,990l.; stations, 1,367,106/.; the railways' refreshment-rooms were in credit 16,0921. The total indebtedness to the Treasury on account of State enterprises was, therefore, 1,581,1067. In Western Australia the problems interesting State politicians were largely financial, and the Federal Parliament granted a subsidy of 450,000l. As a further method of remedying the financial position in Western Australia, the Federal Government invited the State to surrender to the Commonwealth all its territory north of the twentysixth parallel of south latitude, that is, practically, half the area of the State. In exchange, the Commonwealth Government proposed to assume liability for a capital indebtedness of 2,750,000l. in respect of loan money expended upon the development of the region. On December 16 the two Houses of Parliament in Western Australia debated this proposal, the Assembly rejecting it, while the Council passed a motion urging that negotiations should proceed for the surrender of the territory in question. Tasmania, like Western Australia, suffered from financial stringency, necessitating Federal aid. On April 20 Sir Nicholas Lockyer, formerly Comptroller-General of Customs, submitted a long report upon the financial position of Tasmania under federation to Mr. Bruce. The report showed a deficit on revenue account to June, 1925, of 1,408,000l. The State debt had grown from 491. 4s. 6d. a head in 1901 to 1097. 13s. 9d. a head in 1925, railway expenditure showing, in Sir Nicholas Lockyer's words, "a remarkable record of persistent loss and increasing burden to the State." Sir Nicholas said that without substantial concessions from the Commonwealth it would be impossible to stem the exodus of population from Tasmania, which had already "reached alarming proportions, and, if permitted to continue, would surely lead to the bankruptcy of the State." The report recommended a loan not exceeding 1,000,000l. for the development of agriculture and horticulture, a grant of 300,000l. a year for ten years upon condition that the land-tax should be reduced, and a grant of 500,000l. towards the cost of hydroelectric schemes in Tasmania. Mr. Lyons, Premier of the State, expressed his disagreement with Sir Nicholas Lockyer's conclusions, and said that assistance on the lines suggested would reduce Tasmania to the position of a vassal State NEW ZEALAND. The General Election in November, 1925, gave Mr. J. G. Coates, the New Zealand Prime Minister, an assured majority. The Reform Party polled 47 per cent. of the votes, the Liberals 20 per cent., and Labour 27.6 per cent., Independents accounting for the remaining 5 per cent. of the electorate. In consequence of a victory, due to a split vote, in a bye-election in February, the Labour Party, with 13 members in a House of 80, became the official Opposition for the first time in the political history of the Dominion. The bye-election was consequent upon the appointment of Sir James Parr as High Commissioner in London, in place of Sir James Allen, who returned to New Zealand. Several Cabinet appointments were announced on January 18, and Mr. Coates finally reorganised his Cabinet on May 23, the distribution of portfolios being : Prime Minister, and Public Works, Railways, and Native Affairs Finance and Customs Lands, Industries, and Commerce Labour, Mines, Marine, and Pensions External Affairs, Post and Telegraphs, Immigra tion, and Tourists Internal Affairs Attorney-General and Minister for Justice and Defence Agriculture Education Leader of the Legislative Council Maori member of the Executive Council Without Portfolio Without Portfolio Rt. Hon. Joseph Gordon Coates. Mr. W. Nosworthy. Mr. Frank Rolleston. Sir Francis Bell left for Europe in March to represent New Zealand at the League of Nations Assembly, and on June 11 Mr. H. S. Williams was added to the Cabinet as Minister of Public Works. The new Ministers were selected from the Reform Party. The most noteworthy omission was Mr. D. Jones, chairman of the Meat Export Control Board, whose political reputation had been increasing steadily. On May 23 Mr. Coates also announced the creation of a special Prime Minister's Department, under the control of Mr. F. D. Thomson, who had acted as private secretary to New Zealand Prime Ministers for many years. The Department also included an officer, detailed to deal with matters arising from consultations between Great Britain and the Overseas Dominions. Mr. Coates justified the administrative change by recalling that all such matters should come under the Prime Minister's jurisdiction, especially in view of the fact that he is the official representative of the Dominion at all Imperial Conferences, and, in that capacity, is invested with authority to speak on behalf of the Government and the country in the councils of the Empire. The change brought New Zealand into line with other Dominions, Canada and Australia having already proved the desirability of an "external affairs staff," Australia having also appointed a liaison officer in London to keep the Commonwealth Government in touch with British affairs and opinion. The preliminary figures of the census taken in April showed a total population, inclusive of Maoris, but exclusive of Western Samoa and other Pacific islands, of 1,407,165. The white population of the Dominion was 1,344,384, being an increase of 129,707 "whites" since 1921. The census also disclosed a tendency of population to drift towards the towns and a disposition on the part of the people of South Island to move to North Island. In 1926, the population of North Island was 891,970, and that of South Island 515,195, compared with 390,579 in North Island and Y 382,140 in South Island in 1901. The milder climate in the north is the chief attraction. In New Zealand problems of immigration and land settlement are closely connected, and, on February 13, in reply to a deputation representing the Presbyterian Church, Mr. McLeod, Minister of Lands, explained the Government's policy in this regard. He said that the Government had been criticised for not making more use of the British grant of 500l. per migrant, but it should be remembered that it cost, at least, 1000l. to 1200l. to give a man a fair start in New Zealand on a comparatively small section. Moreover, the most successful form of settlement was by people working for wages at first, and then purchasing land with their savings. It was easy to get New Zealanders to take up suitable land, and the Government was unable to give overseas migrants preference over people born in New Zealand in assisted land settlement. On April 20, in consequence of an outcry against the influx of Asiatics, the Government decided that no permits would be granted to Chinese for a year to reside in New Zealand. On December 16, the Minister of Immigration announced that an agreement had been made between the New Zealand and British Governments whereby government-aided settlers received the benefit of largely-reduced fares from the mother-country, free passages being given to all nominated single women under forty, and the fares to single men being reduced to 117. In order to allow the Prime Minister to attend the Imperial Conference, Parliament met in June, and the session of fiftyseven days ended on September 11. In all, ninety-four Acts were passed, a fact which aroused adverse comment as indicating over-legislation. Among the Bills passed was one establishing an agricultural college, but the outstanding measure of the session was the Family Allowances Bill, providing weekly allowances of 2s. for each child under 15, in families with less than 41. a week. No contribution from either the industry or the wage-earner was required. The grants to cover these family allowances will come from the Consolidated Fund, and its liability in respect of the 60,000 children estimated to be affected will be 250,000l. a year. The 28. allowance was described by Mr. Coates as a modest beginning," and he added a hope that, when the financial outlook improved, an increase would be possible. 66 Mr. W. Downie Stewart delivered his Budget speech on July 8. He had taken over the portfolio from Mr. Nosworthy on May 23, so the financial proposals contained no startling novelties. With a revenue of 24,725,7621. and an expenditure of 23,570,0837., the surplus for 1925-26 was 1,155,6791. Of the revenue 8,383,8771. came from Customs. In recent years the return from Customs has been steadily increasing, but Mr. Downie Stewart was unable to anticipate a continuance of this, and, accordingly, could not promise any reduction of taxation. As Mr. Downie Stewart said : "For the current year it will be inadvisable to expect any increase in the gross revenue-in fact, the preparation of this statement is based on the expectation of a possible reduction. It is impossible to expand services in reliance on increased revenue mainly derived from Customs duties, a source inherently liable to fluctuations. Inflated revenue due to increased imposts cannot be regarded as stable, and surpluses from such a source should, when available, be applied as far as possible to debt-reducing purposes, and not be regarded as a basis for reducing taxation." The general financial position of New Zealand, however, in 1926 was markedly satisfactory, as shown by the flotation of a 6,000,0007. loan, bearing interest at 5 per cent., which was issued in London at 981. 10s. Mr. Stewart, speaking on April 20, said that the balance of trade for the year would be against New Zealand, and he urged that the Government, private enterprise, and individuals alike should exercise every care in expenditure. What anxiety there is regarding New Zealand finance arises from the recent growth of public debt, which amounts to 155l. 6s. 9d. per head of population, apart from the borrowings of local authorities. However, of the gross debt, amounting to 227,000,000l., only 101,000,0001. is unproductive, being due to expenditure upon the Maori and European wars. Later in the session Mr. Downie Stewart introduced the Bank of New Zealand Bill, giving the Bank authority to establish a special branch for making long-term advances to farmers; this was passed by the House of Representatives on September 7. Mr. Downie Stewart said that the new money which the Bill provided for would be lent at a rate of interest not exceeding 6 per cent., which was below the average mortgage rate at present obtaining, although it was slightly above the State Advances net rate of 53 per cent. The Right Hon. Sir Joseph Ward, an ex-Prime Minister, emphasised the connexion between the Rural Advances Bill and the Bank of New Zealand Bill. In connexion with the development of the Dominion, good work has been done in the construction and improvement of high roads by the Main Highways Board, one of Mr. Coates's administrative creations. The excellent condition of New Zealand roads led to a boom in motor cars, and there are now 120,000 motor vehicles in the islands-that is one for every ten of the population. The Government was less fortunate in its handling of another traffic problem, due to competition between the municipal tramway services, in which 6,000,000l. of public money was invested, and the motor omnibus. On May 7, without any public inquiry or legislation, and merely an abortive Conference of the interests affected, an Order in Council was gazetted practically making the profitable running of the motor omnibus impossible. The crucial clause read : The motor omnibus fare in respect of any passenger carried between any places served by a tramway or trackless trolley shall be at least twopence more than the corresponding tramway or trolley fare. |