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Thursday, 28 May 1942

Mr CHIFLEY (Macquarie) (Treasurer) . - If the Treasurer of a State considers that circumstances have arisen in which the State requires additional compensation from the Commonwealth, he may make application direct to the Commonwealth Grants Commission. The consideration of his request by the commission is not dependent upon a referonce to the commission by the Commonwealth Treasurer. The commission will recommend to the Government whether the request should be granted in whole or in part or should be refused.

Mr Menzies - There is no provision for reducing the amount. Sub-clause 1 of clause 6 provides that if the Treasurer of any State is of the opinion that the payments are insufficient the matter can be referred to the commission, but can it be referred back to the commission if the Government considers the amount to be too large?

Mr CHIFLEY - The amount of the grant would be decided by the Parliament.

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