BUDGET AND DEBT

Auckland Star, Volume LIII, Issue 103, 3 May 1922, Page 5

BUDGET AND DEBT

CANCELLED REPAYMENTS. EFFECT ON FOREIGN EXCHANGE EONAR 14WS DEFENCE. ftty Cable — Press Association. --Co, ; :Ujr.< 'Kc.c-lved lu.-ju a.m.. 1-OXDOX. .May ■>. In the House of Commons to-day Sir Donald McLean (VecM.-si. resuming the Kiidgct. debate, attacked the Ministry's past haphazard Imposition of new t.rialion. Th<> Bu( ; ..;,-t would nave boon ruined n-itboui the receipt of ■'■iiitriViuticn for maintenance of tho army of occupation. Tic condemned tin- <iN-ion*ini-.aiifr of iho repaymen , of the debt as disastrous and likely to affect "V-T favourable foreign ovhange position. Mr. Kunar Law approvotl Ji the BudCM ns thr Ue.'t that could be cvpc-W'J. LiifiHcrU lie believed every available penny i ■iion'd go to the repayment of debts vli«n i trnue was Rood an.; revenues expanding. ', He believed l.ad trade .iubtiiieil an-I demanded reducing the stale i.f repayments, and that whatever any Government may !mvt> done ho holievcd'a trade iriuh had to i-onip, H;< w.is Kurpri=fd livat Ibe lioom had no! been *hortor-livod. If th« income tax reduction only gave :; jliwii; impulsp to trade revival il would help tin- i-ountrj- more thmi loniinuins iK-W reduction on n proiiigious ?i-a!,'. Hriiain nuisr licar ? liuae Hmirn-inl bunlen for at | least; two generations, mid the ovilv way I •f mooting the position "as redin-Mon cf ■•\penditiiro. As far ns liiiinan f - re>iglr r-'iiM (ell mother world war wns no; likely for a: leap! a f-eniury. 11' it c-.T.np before Brilain's real pi;cn>:th m;i>i consist in a Strong flnnncia! posit ion. Mr. J , . 11. 'nimuiis. M.P.. said Labour rmje.-ted to llie Oovprnment sjivinsr a boiiiiß to farmrrs :uni landlord', whii-li would have thp r\\'cc\ of jirevpnting laml hein<; eiiliivated and ; lien roni-oling th" masses with a miserable fourpeni'C oil" ten.—(A. and N.Z. Lal'b-.l FAVOURABLE RECSPTION. THE REDEMPTION SUSPENSION. LONOOX. May 2. The Budget ffai vnrion-ly received in the lobbies unci outMd? Parliament, and vii the «hole favourably. There i-* n iert«in criticism on the suspension of the Sinking I-'iind, on the ground that are not ready for this, 'but I there is c strong counter-opinion in fir.am-in! <ii\le- that liritaisi hitherto j !in< made undue sßfriflce> to the re-j demption of her ile'ht that il would be. j unfair ar.d l-atal to Uritish trade to continue repayment at >ui-!i -p?ed. j The retention of th» heavy war tax on beer is rriticifcd on the jrround that i re<hiv'tion would lead to greater consumption, and. therefore, would inereapp | the aggreg-atL- yifld of the tax. It is •on!ended, on the other lund. that additional consumption U not warned. The remains the pivot of a .-harp ■ontroversy. A most important elaini is that tiiA income tax ought to b. , jxrended to co-oparativ? sO{'ietiPS, whose turnover in 10-21 iv»< £420.000.000. The possibilities of extracting revenue from the pari mutuel i- eommen'ted on, md Australian and Xevv Zealand method!! of exploiting racing for the purpose* of revenue are mentioned with approval. The pari mutuol it gaining popularity in Kngland, and it i* pointed out that it could produce a progre»=ivfi relief of general taxation. The reduction of the income ta\. inland po?tn<re, and th<> duty on tea. and the concession* to agriculturists are. generally Hpproved: while '■stisfaetion is universal that Sir Robert Home ha? dr-ferred tho scheme for funding the pensions obligation?., though the opinion in 'Mini?te-Tial circles i* that this will possibly hp necessary in 1033.— (A. and X.Z. Cable.)