PREMIERS' PLAN.

Auckland Star, Volume LXII, Issue 143, 19 June 1931, Page 7

PREMIERS' PLAN.

FEDERAL FINANCE. Rehabilitation Proposals Under Discussion. MR. SOULLIN'S KEVIEW. (United P.A.—Electric Telegraph—Copyright) CANBERRA, June 18. In the Federal House of Representatives the Prime Minister moved the second reading of the bill to approve of the Premiers' financial agreement, which covers the debt conversion plan. He reviewed-the whole history of Australian indebtedness. Australia had had no credit in London since September last, and whatever new expenditure had arisen had been caused by world conditions. For example, the adverse exchange was costing £10,000,000 a year. The unemployed in Australia now numbered 300,000, the cost of whose sustenance and relief was £9,000,000 a year, while if no action was taken to cope with the drift this cost would be swollen to £13,000,000 a year. The Treasurer, Mr. E. G. Theodore, announced that legislation would be introduced immediately increasing the sales tax from 2 J to 5 per cent, and the primage duty from 4 to 10 per cent, and also increasing the income tax. It was thus hoped to reduce the deficit from £20,000,000 to £4,500,000. Cuts of 20 per cent would also be made without delay in the salaries of public servants and ex-soldiers' pensions, but due consideration would be given to indigent cases. Pensions would in future be denied to widows of soldiers' who had remarried, and also to the children of such remarriages. The debate has not concluded. Opponents of Premiers' Plan. A Sydney message states that it is not by any means certain that the plan evolved by the Premiers' Conference for the financial rehabilitation of Australia will be adopted. Recent events disclose growing opposition on the part of Labour organisations in the eastern States to the plan, in spite of an earnest appeal by the Prime Minister, Mr. J. H. Scullin, to let it go through, and in which he shows the danger of default and a complete stoppage of credit. It is asserted privately that a., majority of the delegates to a special meeting of the executive of the Federal Labour party, which is now sitting at Canberra, are distinctly hostile to any reductions in salaries or pensions, and that they intend to urge a double dissolution on the fiduciary currency issue. On the other hand, an unofficial statement was made in Canberra that the Federal Government will in no circumstances deviate from ite intention to give full effect to the plan of the Melbourne conference. A complete endorsement of the plan has already been given by. the Governments of New South Wales, Queensland, South Australia and Tasmania.