AUSTRALIA’S DIFFICULTIES

Evening Star, Issue 20593, 19 September 1930, Page 9

AUSTRALIA’S DIFFICULTIES

THE FINANCIAL PROBLEM MR BAVIN'S POLICY SPEECH Press Associst tion—By Telegraph—Copyright. SYDNEY, September 18. The Premier (Mr T. R. Bavin) delivered his policy speech to a crowded audience at Killara suburb to-night. He stated that the Government sought approval of the financial agreement reached at the Premiers’ Conference, and he warned the electors that if this agreement was repudiated by any or all of the States there would be no escape from disaster. “We are therefore fighting in this State the battle of the whole of Australia. I have undertaken on behalf of Now South Wales to balance our Budget, and 1 now ask for a free hand to do so. Wo shall aim at equality of sacrifice, relief for unemployment, reduced cost of public services, maintenance of the highest standard of living that the economic conditions will permit, and insistence that reduced costs of production shall be accompanied by a corresponding reduction in the costs of commodities. Wo will do our utmost to ‘meet our obligations by economy rather than by taxation. We shall provide loans at low rates of interest for primary producers who are prepared to give employment, and we shall continue our efforts for the relief of unemployment. We will give relief to mortgagors of property who are unable to meet their obligations.”

Mr Bavin reviewed the finances of the State and tho Commonwealth, pointing out that the national income had diminished by £80,000,000, and he estimated that the total deficit of the Commonwealth and the States for the current year, unless expenditure was drastically cut down, would amount to £20,000,000. Ho emphasised that Australia’s difficulties were only postponed, not removed; but if it should be apparent that they were making a genuine effort to honour their obligations they would be able to convert loans as they fell duo at a lower rate of interest. He said that before next Juno they had to raise £49,000,000 from the Australian market for tho conversion of internal loans. CABINET'S PROBLEM MELBOURNE, September 18. (Received September 19, at 1 a.m.) The Federal Cabinet is continuously trying to evolve a policy of economic and financial reconstruction. Tho Acting Prime Minister (Mr Fenton), whose health is indifferent, said that the Cabinet was convinced that wages and other costs must como down. It was also highly likely that further taxation would bo imposed on land, private incomes, and amusements, as well as increased Customs and Excise duties.