The Secretary to the Parliamentary Standing Committee on Public Works has forwarded the following memorandum for advice:

In considering the question of providing a water supply for the Flinders Naval Base, a suggestion has been made that it might be possible for the Commonwealth to enter into an arrangement by which the local shire councils might co-operate with the Commonwealth in the matter-bearing portion of the expense and receiving portion of the benefits.

Will you be so good as to favour me- with your advice and opinion as to whether there would be any constitutional objection to the Commonwealth entering into such an arrangement.

I do not see any constitutional objection to the Commonwealth entering into the arrangement.

Under its defence power the Commonwealth can supply water to the Naval Base, and the local shires, on obtaining the necessary authority, can supply water to their shires, and I see no constitutional objection to the two schemes being amalgamated.

[Vol.13, p.287]