The Governor of the Commonwealth Bank has received from the Metropolitan Board of Water Supply and Sewerage, Sydney, an account for value of water supplied and sewerage services rendered to the Bank.

The statement attached to the account (which relates to the half year ending on 30 June next) shows that the amount of the account is arrived at by means of a fixed rate upon a certain assessment.

The Treasurer desires to be advised as to whether this and similar accounts for water and sewerage should be paid by the Bank.

In the exercise of its ordinary functions, the Bank, as an instrumentality of the Commonwealth, is entitled to the same protection from taxation by a State or an auth-ority created under a State without the consent of the Commonwealth Parliament, as if it were a Department of the Commonwealth. It is however bound to pay for services rendered.

As the account is not based on the actual amount of water supplied or services ren-dered it should not in my opinion be paid in its present form, unless an agreement to pay upon an assessment basis has been made.

[Matter omitted. ]

[Vol. 11, p. 213]

1. This Opinion is unsigned in the Opinion Book, but it is attributed to Mr Hughes.

* See also Opinion No. 508.