24 Jun 1959
Page 1
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Newspaper
Canberra Times
Location
Canberra, Australian Capital Territory, Australia
Date
Jun 24, 1959
Page
1
Commonwealth proposes a new six year tax reimbursement formula starting July 1, with total 242.5 million pounds for 1959 60 and per capita allocations for Victoria Queensland South Australia Western Australia and Tasmania. Premiers adjourn to study the plan, Cahill calling it revolutionary while expecting broad acceptance.
The document outlines a plan to adjust the Allowance For Wage Variations by linking grants to state population and wage trends, with a 0 percent offset for wage changes. It proposes increased formula and supplementary grants, totaling about £220 million for 1959-60, and hints at accepting extra Commonwealth funding to ensure a six year program. It notes current distributions allocate South Australia and other states specific shares and that Victoria and New South Wales would retain larger shares under the new approach.
Mr McEwen defended a proposed 22.5 million pound addition to main cost, saying it would help distribute funds though not solve all issues. Victorian Acting Premier Rylah denied any conspiracy to favor Victoria. Premiers across NSW, Queensland, South Australia, Tasmania and Western Australia voiced a range of views, from suspicion to cautious acceptance, on the new reimbursement formula and state involvement.
Australia’s prime minister said Western ministers failed to gain acceptance due to harsh rejection by the other side but urged continued international conferences. He cited talks with Adenauer and de Gaulle, stressing that misapprehensions fade through dialogue and urging silence from opponents to bolster independence movements in Asia.
Sydney report notes debate on a 35 hour week as inevitable due to production trends and automation. Premier Cahill hinted hours might be reduced to 35 eventually. Maloney cites cases where automation increased output while work hours fell, with NSW experiencing displacement in some industries.
Reports from Cairo detail arrests and house arrest of Iraqi officials led by Colonel Taher El Sheikh Ahmed amid an anti-monarchy probe. General Kassem and the army face inquiries as Baghdad Radio cites plans to exit the sterling area under a Britain pact, while stressing continued friendship with Britain.
President Frondizi faced a crisis as the entire cabinet reportedly offered resignation amid a military ultimatum. He rejected the wartime ministers’ resignations while the military threatened a coup, drawing in central bank and banking officials and signaling deep political turmoil in Argentina.
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