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Inter-colonial conference was held in Sydney to discuss the particular issue of customs duties. Colonies such as New South Wales believed in free trade, whereas Victoria supported a 'protectionism policy' in which government taxes were imposed on goods imported from other colonies to encourage people to support local industry. Despite the conference being called to address this contentious issue, it went down in history as the first time the idea of a federal council was put forward.
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In November and December of 1883, an Australasian inter-colonial convention was held in Sydney where the six colonies, New Zealand and Fiji met.
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The British Parliament passed the Federal Council of Australasia Act 1885 (UK) on 14 August and after the colonies passed adopting acts, the Federal Council was formed. New South Wales, New Zealand and South Australia (except for 1888-1890), however, all refrained from joining the Council.
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It was said that the absence of New South Wales, that was the most powerful colony at the time, had a severe and fatal impact on the Council which later disintegrated in 1889. Despite also being flawed by having no executive powers and no revenue of its own, the Federal Council was the first kind of inter-colonial collaboration.
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