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Friday, 14 September 1906

Senator HIGGS (QUEENSLAND) asked the' Minister representing the Treasurer, nf on notice -

1.   Has the Federal Treasurer read the following extracts from the Budget speech of the Premier of Queensland : -

When we federated it was distinctly understood that the Braddon section would prevent the Federal Treasurer from using for Federal purposes more than one>fourth of our net Customs and Excise Revenue, and that at least threefourths of it would be returned to the State. Two years ago the Federal Treasurer retained £28,811 from our three-fourths, and this year he proposes to retain £83,877 of our three-fourths, which we understood section 87 guaranteed to us..... The financial .safeguard which induced Queensland to accept Federation turns out to have been so badly drafted that it is no security whatever. Under those circumstances it might have been expected that an attempt would be made at least to carry out the spirit of that understanding as far as possible; but, instead, we find the Federal Treasurer, knowing that lie will be unable to return Queensland the stipulated threefourths of the net Customs , and Excise Revenue, making fresh proposals which must further encroach upon the State revenue."

2.   What has the Federal Treasurer to say in reply to the foregoing observations?

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