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Thursday, 3 March 1932

Mr SCULLIN (Yarra) .- The object of this clause is to give bondholders power to sue the Commonwealth in the High Court for the recovery of debts due to them in the event of a State making default in its payments. The honorable member for "West Sydney (Mr. Beasley) has referred to the power to make regulations which is given in the next clause of the bill. I remind him that regulations made pursuant to that power must he consistent with the provisions of the measure. I entirely disagree with the honorable gentleman when he suggests that the previous Government strained its power to make regulations to serve the political ends of its followers. The regulations referred to by the honorable member stood the test of examination in the High Court, and were held to be consistent with the act under which they were made. The Executive Council can only make regulations consistent with the provisions of the act under which such regulations are made. I draw the attention of the Prime Minister to the words in paragraph a of clause 5, which read " and any other powers which in the opinion of the Governor-General are necessary". These words are ambiguous, and should be eliminated.

Mr Lyons - I shall ask the committee to strike them out.

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