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Thursday, 14 November 1974
Page: 2369

Senator YOUNG (SOUTH AUSTRALIA) - My question, which is directed to the Leader of the Government in the Senate, follows his answer to me yesterday, when I asked him why the Federal Government did not give more financial assistance to the States. I now ask him: Did the Premier of South Australia not inform this Government that he was prepared to withdraw his proposed new taxeswhich, as I said yesterday, are highly inflationaryif the Federal Government granted extra financial assistance to South Australia and the other States? Was this proposal of the Premier of South Australia given consideration and why were the States overlooked?

Senator MURPHY -My understanding is that the aid given by this Government to the States is 30 per cent more than has been given previously. I will refer the rest of the question to the Treasurer. The matter which the honourable senator raises is an important one.

Senator Carrick - General grants are up 22 per cent.

Senator MURPHY - Senator Carricksuggests that the general grants are up 22 per cent. The information that has just been given to me by one of my colleagues is that, in general, the grants are up. That covers more than the general purpose grants. It covers specific grants as well. The grants are up by about 30 per cent. In any event there has been a very substantial improvement in the allocation by the Australian Government to the States through Parliament. I think it is proper that the specific question raised in relation to South Australia be answered by the Treasurer and I will refer it to him.

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