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Wednesday, 28 April 1965

Senator McKENNA (TASMANIA) - I direct a question to the Minister representing the Minister lor Shipping and Transport. Having regard to the fact that the very welcome subsidy for the shipping service from King Island to Melbourne is based upon the consideration that that service constitutes an interstate activity, will the Minister ask the Minister whom he represents in this chamber to have regard to the fact that the subsidising of the other service from King Island to Tasmania will be within constitutional competence if it is channelled to the State of Tasmania as a conditional grant under section 96 of the Constitution? In that way, no constitutional difficulties would be met. Will he also ask the Minister to have regard to the anomalous and adverse position that has now been created in relation to shipping freight rates between King Island and Tasmania itself?

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