COMMONWEALTH FINANCE.

Press, Volume LXVII, Issue 20244, 23 May 1931, Page 15

COMMONWEALTH FINANCE.

A BIG DEFICIT. £50,000,000 IN SIGHT. EXPERTS RECOMMEND DRASTIC REDUCTIONS. (UNITED PP.E33 ASSOCIATION—ELECTRIC TELEGRAPH —COPYRIGHT.) (Received May 22nd, 7.30 p.m.) MELBOURNE, May 22. Tho Committee of Exports, appointed by tho Loan Council to enquire into Australian financial and economic problems, has made drastic recommendations including:— A 20 per cent, reduction in tho cost of Government generally. A 20 per cent, cut in the aggregate cost of public servants' salaries. A corresponding reduction in the expenditure on social services. A tax of 20 per cent, on fixed incomes, such as interest on bonds, mortgages, and other investments. The Committee points out that payments by tho Commonwealth towards war and other pensions, maternity allowances, and social services generally aro enormously greater than in the United Kingdom, Canada, and Now Zealand, therefore they should receive immediate attention. The fact is also emphasised that accumulated deficits will amount to £'.'<o.ooo.ooo at tho end of the financial year (June 30th), and that if no remedial action be taken by the Commonwealth and States, tho combined deficits will aggregate £50,000,000 by June. 1931.

SUGAR AGREEMENT.

COST OF PROTECTING INDUSTRY

(Received May 22nd, 8.30 p.m.) CANBERRA, May 22,

The sugar agreement, while under discussion in the House of Representatives, was tho subject of bitter criticism by Opposition members. Mr Archdale Parkhill (Nationalist) declared that Australia was paying £5,000,000 a year to sustain this industry. This was sufficient, ho said, to pay tho interest on tho overseas debt. Tho high price of sugar caused a reduction 'n consumption of 10,000,0001b of jam. Mr J. H. Prows© described the sugar industry as a "white elephant" battening on tho wheatgrowers, who were receiving no assistance.

INSURANCE DEPOSITS. ( . GUARANTEE BILL AMENDED. SYDNEY, May 22. The New South Wales Legislative Council, in committee, amended '.lie Insurance Companies Deposits Bill so us to permit tho companies to lodge upproved Government securities in lieu of cash deposits, as a guarantee of good faith. Members pointed out that if the Government insisted oil huge cash deposits several of, tho smaller companies would he oruslipd out of existence. Tho general opinion was that Mr J. T. Lang (Premier) required the cash to' iinancf) public services.

QUEENSLAND BASIC WAGE. BRISBANE. May 22. The basic wago has been lowered by the Industrial Court. The adult males' rate is reduced by three shillings »o £3 14s a week, and adult females by sixpence to £1 19s. UNEMPLOYMENT. RECORD IN NEW SOUTH WALES. EXPENDITURE ON. DOLES. (Received May 22nd, 7.00 p.m.) SYDNEY, May 22. Unemployment registrations iii Now South Wales have reached the record total of 115,000 The dole is now costing the Government £300,000 A month. The total expenditure for ton mouths, ended April 13th. was £1,343,000, but the present rate of expenditure is £3,500,000 per year.