Price Rise Issue For Aust. Budget

Press, Volume CIII, Issue 30499, 22 July 1964, Page 17

Price Rise Issue For Aust. Budget

(.V Z. Press Association—Copyright) CANBERRA, July 21. The Federal Cabinet today began a series of meetings to decide the final draft of the 1964-65 Budget. The Treasurer, Mr H. Holt, will submit the Budget to Parliament next month.

Cabinet's problem is to maintain stability in the face of rising costs. It is generally expected that the 5 per cent income tax concession, given in the 1960-61 Budget, will be abolished. Increased tax on motor vehicles and petrol is freely tipped. Mr Holt has said that drastic restrictions to the economy should not be necessary.

Mr McEwen, as Acting Prime Minister, has warned that expansion might have to be checked if too heavy a demand for goods and labour caused serious price rises.

Cabinet has before it submissions made to its economic committee by all business sections.

The motor industry opposed any rise in the 22J per cent sales tax on cars. Tax Rise Wanted

The Australian Industries Development Association claimed there was justification for increased taxation. The Australian Council of Trade Unions appealed to the Government to prevent price rises after the £1 Federal basic wage increase Business. industry and primary industry leaders also asked for action to curb rising costs.

Interests of the Associated Chambers of Commerce and the Associated Chambers of Manufacturers clashed. The A.C.C.A. urged a free flow of imports to help maintain stability of costs. The A.C.M.A. emphasise the view that imports were rising steeply and “might require attention in the future.”