Reactions To Australian Budget

Press, Volume LXXXVII, Issue 26538, 28 September 1951, Page 7

Reactions To Australian Budget

(N.Z. Press Association—Copyright) (Rec. 9 p.m.) SYDNEY, September 27. The first reaction to the Budget in the main cities to-day was a rush by the public to buy goods before the sales tax increases can be passed on by price-fixing authorities.

Business leaders predict that the Budget will mean dearer living for everybody, with many small manufacturers of luxury goods being forced out of business. The jewellery and fur trades expect to be among the worst hit.

The Australian Labour Party has decided to move a vote of censure against the Government for the Budget.

The first trade union react the Australian Railways Union, ' resignation of the Government.

tion to the Budget came from which called for the immediate

Share prices generally held flrm on the Sydney Stock Exchange under the impact of the new compahy and sales taxes imposed by the Budget. Brokers say the Budget terms had been largely anticipated, as shown by the steep fall of the market over the last few months. , , .. Tension was evident to-day in the unusual quietness as brokers assembled for the morning call, but operators relaxed when, after a hesitant opening, leaders held firm. The director of the Federated Taxpayers’ Bureau (Mr J. M. White) said that Commonwealth taxation at this year’s level represented an average burden of about £8 15s a week on an ordinary family of a man, his wife, and two children, and that tax collections of all kinds represented a burden of £ll3 18s 6d a head of the population for a year. , He added: “In framing the tax policy the Treasurer seems to think that the dis-incentive effect of high taxation is only an academic argument, I think it will be found that the new rates will lead men to set more store on leisure, as the tax increases will fall most heavily on any extra income earned by harder work. Labour Party Reaction A meeting of the Federal Labour Party decided this afternoon that the firoposed social services increases were nadequate, that the direct and indirect taxation imposed undue burdens upon the people, and that full employment was threatened. Its censure of the Government will take the classic Parliamentary form of a motion to reduce the first item in the Government Estimates by £l. The amendment will be submitted to the House ot Representatives next week. The Leader of the Opposition (Dr. H. V. Evatt) commented in Canberra: “My impression of this Budget is that it is a blueprint for a depression. The concessions in the way of social service benefit are hopelessly inadequate, and they do not make up to the pensioners the leeway in basic costs for food, rent, clothing, and fares. The Budget will create uncertainty, frustration, and losses in business and industry. Combined with the present disastrous policy of credit restriction, it will create unemployment. The impact of the Budget will hit every housewife and every home. The pay envelope will be reduced and the cost of living directly increased. It seems to me that Mr Menzies’ prediction of a horror Budget and Sir Arthur Fadden’s threat of nasty medicine have been more than fulfilled.”

The Australian Railways Union, which is representative of 30.000 railwaymen, recommended a trade union levy of not less than 2s a man to build up a fighting fund for the removal ol the Menzies Government. It protested against the “depression” Budget and the dismissal of Government employees. In Melbourne Mr A. E. Monk, president of the Australian Council of Trade Unions, said: "The Government’s one apparent solution for inflation is to take everything out of the hide of the ordinary taxpayer by direct tax and sales tax.” Higher Prices

In New South Wales, which recently froze all prices, orders must be Issued by the Prices Minister (Mr F. J. Finnan) before the new prices for beer, spirits, manufactured tobacco and cigarettes, and other items are passed on. To-day men clamoured for razor blades (a packet of five, formerly Is Bd, now to be 2s 4d) and shaving cream (which will rise to 3s a jar) and women for face powders (un by 2s 6d to 13s), lipsticks (up by Is 6d to Ils), and foundation creams (up by 2s 6d to 12s). A diamond engagement ring which could be purchased for £3O will cost £5O. Sports goods have also felt the full weight of the increases, with tennis balls up by lOd to 4s lOd, rackets up by £1 4s to £7 19s, cricket bats up by £1 to £6, and top-grade golf clubs up by 19s to £6 4s each. A car costing £978 will now cost £1057, and a toy previously retailed at £1 will be £1 10s. Mantel model radios have advanced by £2 or £3 in price.