COMMENT ON BUDGET

Press, Volume XCI, Issue 27639, 21 April 1955, Page 13

COMMENT ON BUDGET

“Stimulus To The Nation”

(N.Z. Press Association—Copyright) (Rec. 11.30 p.m.) LONDON, April 20.

Financial quarters consider that Mr Butler’s 1955 Budget is the work of a brilliant politician.

Giving awav less than half his surplus to the electors, the Chancellor of the Exchequer removes 2,400,000 persons completely from income tax and lightens the load on all other taxpayers. He keeps more than half the surplus to maintain the world’s confidence in sterling. The Chancellor twice stated the economic key to this ingenious result. It is that he does not need to do by the Budget work that is already being done by the bank rate.

In a significant phrase he said that the timeliness of the higher bank rate and other actions taken in’ February had been demonstrated by the movement of the dollar reserves since then. The Budget was well received by the British press, which generally regarded it as a stimulus to the nation. The “Manchester Guardian” described it as “simple, pleasing, and a tonic that is easily understood and appreciated by the mass of the people.” .But the “Manchester Guardian” criticised as “curiously mean” the Budget’s reduction of the purchase tax on textiles by a half. The purchase tax on quality textiles was - “a thoroughly bad tax” which discouraged the trade from making many of the high-grade quality cloths on which Lancashire’s overseas markets must increasingly depend. “Considering the crucial stage the cotton trade has reached in a long decline, it would not have been too much to wipe out the demoralising tax altogether,” the “Manchester Guardian” said. The ‘“Yorkshire Post” said Mr Butler was relying “not on the mechanism of restraints, but on energy, working ability, and a sense of realities which precedent entitles a Chancellor to look for in the people of this country. Mr Butler’s policy is the adaptation of Churchillian principles to the special sphere of economic life. The “Glasgow Herald” welcomed the tax relief for Britain, which, it said, was “still the most highly taxed country in the world.” The Communist newspaper, the “Daily Worker,” criticised the Budget. “Were this Budget to succeed in its aim, the Conservatives, on behalf of big business, would find their rule consolidated and would be much more ruthless with the'common people than they are at the moment.” Wool Values In Australia (Rec. 8 p.m.) MELBOURNE, April 20. Values for Merinos, comebacks and fine crossbreds at the Melbourne wool sales today were generally unchanged on yesterday, but medium and coarse crossbreds sold in sellers’ favour. Competition was particularly keen, with inquiry more widely spread. West Europe, Japan, Australian mills and Britain were the principal operators. There was an almost total clearance of the offering of 12,900 bales. Crosbred prices were: super 60/64’s lOOd; super 56’s 89d; super 50’s 80d. Olympic Games Tickets.— Ticket sales and bookings for the Olympic Games will open next month—a mdnth behind schedule. The Games administrative officer (Mr P. W. Nette) said a breakdown at the Government Printing Office had caused a delay on ticket sales.—Melbourne, April 19.