The Secretary to the Victorian Railways, having been required by the Customs to furnish security under section 21 of the Customs Act 1901, has replied, by the direction of the Acting Commissioner, that:

It is not considered that section 21 of the Customs Act 1901, as regards security in connection with the carriage of goods, subject to Customs control, by rail, was intended to apply to this Department, as the fact of the railways being the property of the State should, in itself, be sufficient guarantee.

The papers are forwarded to me with the following minute by Sir George Turner (acting for the Minister for Trade and Customs):

As practically all the Australian railways belong to the States it seems to be clear that section 21 does apply-but it will be well to get an opinion from the Attorney-General and if it bears out this view a copy may be sent to the Railway Commissioner.

Section 20 of the Customs Act provides for the licensing of carriages boats and lighters for the carriage of goods subject to the control of the Customs. Section 21 is as follows:

The principal official of any railway in lieu of taking out a licence for each carriage to be used in the carriage of goods subject to the control of the Customs may give security for the due carriage and custody of all such goods on the railway, and thereupon all carriages of the railway shall be deemed to be licensed.

Section 24 provides that 'No person shall use any unlicensed carriage ... for the conveyance of goods subject to the control of the Customs'.

I agree with Sir George Turner that section 21 applies to State railways.

Though it cannot be supposed for a moment that the State railway authorities would sanction any breach of the Customs laws, yet it cannot be admitted that the fact of the railway being State property is a guarantee to the Customs that the goods while in transit will not be interfered with.

The object of requiring the security is simply that the railway department should be definitely responsible for goods under Customs control while in the custody of that department.

[Vol. 3, p. 284]