Expansion Moves Likely In Australia

Press, Volume CI, Issue 29728, 23 January 1962, Page 13

Expansion Moves Likely In Australia

(IV.Z. Press Association—- Copyright)

CANBERRA, January 22

Federal Government members, who met in Canberra today for a review of policy, expect the Government to introduce, before the end of next month, an economic programme similar to a supplementary budget.

It will be designed to stimulate the immediate industrial expansion and reemployment foreshadowed, by the Prime Minister (Mr Menzies) last night. These measures are likely to be -followed by major policy changes in the 1962-63 Budget in August.

The immediate measures expected soon after the new Parliament meets on February 20 will probably include: Imports.—A system of protective import regulations, probably in the form of licensing on selected commodities. to guarantee Australian producers of consumer goods a bigger share of the domestic market if they restore production. Sales Tax.— A further reduction in sales tax on consumer goods to reduce retail prices and accelerate turnover.

Car Industry.— Special aid to the car industry, which may be interim until the Government considers the 1962-63 Budget. Taxation. — A possibility of other tax concessions to stimulate national spending. Works Grant.—A big increase in Commonwealth capital grants to all states for works and housing projects. to begin as soon as possible after next month's Premiers’ conference. Deficit.— The Treasurer (Mr Holt) to announce that if necessary, the Govern-

ment is prepared to carry a much bigger deficit this year than the £16.47 million set in the Budget. The keynote of today’s party meeting is concern at the high level of unemployment and the failure of the Budget measures to stimulate jobs. The Government admits that these countermeasures. although they have been of some benefit, have fallen far short of expectations.