UNDER FIRE

Auckland Star, Volume LXXII, Issue 228, 26 September 1941, Page 7

UNDER FIRE

FADDEN'S ORDEAL Bases For Expected Labour Attack On Budget United Press Association.—Copyright. Rec. 1 p.m. CANBERRA, this day. Mr. Fadden was aimost continuously under fire from Labour members during his Budget speech. He had to appeal to the Chairman of Committees for a fair hearing. The former Prime Minister, Mr. Menzies, sat in his own room during most of the speech. Although the Labour leader, Mr. Curtin, declined to comment last night, observers say the Labour attack on the Budget is likely to be based on: (1) The proposed increase of 1/ a week in deferred pay for soldiers; (2) the proposed interest rate of 2 per cent on compulsory savings: (3) the taxation of income earned by personal exertion on the same scale as income earned from property; (4) the proposed compulsory loans by all persons without dependents earning more than £100 annually.

The Labour party, observers say, will contend that the deferred pay for soldiers amounts practically to a compulsory loan to the Government without interest. The interest rates on compulsory loans is likely to be a major issue. Labour men say that low wage earners, wiio will be compelled to lend at 2 per cent money they cannot afford, should receive at least as much, if not more, interest on their money man tne private banks. Labour has always held that income from personal exertion should not be taxed as heavily as income from property. The two Independents, Messrs. Wilson and Coles, either of whom could cause the defeat of the Government if they voted with Labour, declined to comment on the Budget! Explaining why he voted with, and saved the Government on the secret fund issue. Mr. Wilson said: "While I am satisfied that improper methods have been employed in the use of public funds, I did not cbnsider the issue one of sufficient magnitude on which to defeat the Government at this stage."