AUSTRALIAN TAXATION

Evening Star, Issue 20635, 7 November 1930, Page 9

AUSTRALIAN TAXATION

FEDERAL GOVERNMENT'S ADDITIONS OPPOSITION CRITICISM Pr«M Association—By Telegraph—Copyright. CANBERRA, November 6. Mr J. G. Latham, the Leader of the Federal Opposition, expressed the opinion that the new duties and taxation will still further diminish the revenue and therefore defeat the Government’s object. The fact that the Government does not intend to balance the Budget this year gave rise to the idea that it may default in its payments, either in Australia or overseas, with disastrous consequences to the country. Dr Earl Page, Leader of the Country Party, said: “The old delusion that wo could tax ourselves back into prosperity is being perpetuated. This revised Budget will scarcely bring back confidence in our methods of extricating ourselves from our difficulties.”

MR BAVIN’S COMMENTS “POLITICAL COWARDICE.” SYDNEY. November 6. The former Premier, Mr T. R. Bavin, has issued a statement in which he severely criticises the Federal Ministry for failing to honour its promise, given at the Premiers’ Conference in August last, to balance the Budget, to effect substantial economies, and to refrain from further taxation. He described it as the worst example of political cowardice. It amounted to repudiation, and Australia would be further discredited in the eyes of the world. Ho added: “Had it been thought the Federal Ministry would not keep faith with its own solemn undertaking and that of the State Premiers there would not have been the slightest chance .J an agreement being arrived at last August.” THE TOBACCO DUTIES SYDNEY, November G. The new tobacco duties are causing much adverse comment. Sir Mark Sheldon says that they will diminish production and cause further unemployment, while some retailers predict that small men will have to go out of business, as tobacco prices must riso 2U per cent. SYDNEY STOCK EXCHANGE SYDNEY, November 6. A reaction occurred on the Stock Exchange consequent on tho revised Budget proposals. Banking securities, however, were firmer and more: confidence was displayed. Bank of New Zealand recorded a riso of 3s 9d. Bonds were easier, with three issues lower, but the weakness was not marked, Tho turnover was very restricted all round, FEDERAL LABOUR PARTY A SPLIT LIKELY.

SYDNEY, November 7. (Received November 7, at 10.10 a.m.) The ‘ Herald ’ says that a split is likely in the Federal Labour Party. The Treasurer (Mr Lyons), after being overruled in the caucus on a financial matter, said he would have to consider his position, and would probably resign. The caucus desired to compel the Commonwealth Bank to finance maturing loans, and refused to sanction the raising of a loan in the open market.

Mr Fenton and Mr Theodore supported Mr Lyons. After the caucus had outvoted Mr Fenton and Mr Lyons, the latter said he would communicate with Mr Scullin.

Mr Lyons absented himself from the night sitting of Parliament. Mr Fenton telephoned to Mr Scullin in London late last night. Unless Mr Lyons alters his intention his resignation is certain.

MR SCULLIN INTERVIEWED

LONDON, November 6. (Received November 7, at 11.40 a.m.) When reports that Mr Lyons had resigned and that Mr Fenton might follow reached London, Mr Moloney telephoned to Mr Fenton, who denied the resignation reports. Ho admitted that tile position was very serious, but be hoped that it might yet be saved. Mr Scullin said he had not received any communication from Mr Lyons or Mr Fenton, and was unable to make any comment. Mr Scullin, who was perturbed at tho action of the caucus, said lie would regard the loss of Mr Lyons’s services as a disaster. Ho considered that Mr Lyons bad done wonderfully good work, and had shown a clear’ appreciation of Australia’s position.

THE POINTS IN DISPUTE

METHOD OF MEETING LOAN OBLIGATIONS.

SYDNEY, November 7. (Received November 7, at 12.50 p.m.) Correspondents at Canberra state that tho Labour caucus differences arose over the necessity of raising £27,000,000 to meet loans maturing in December. Mr Lyons proposed to raise a loan for this amount in about a month’s time to cover tho indebtedness. A section of the party, which opposes borrowing, succeeded in defeating this proposal, and in carrying a motion demanding the immediate passage of legislation to cothpel tho bondholders in the £27,000,000 loan to hold their bonds foi ; a further twelve mouths, the interest to be paid ns usual, with a proviso that necessitous persons might receive the immediate payment of small amounts from tho Commonwealth Bank, which would then hold these cashed bonds as non-interest bearing

securities. The of this motion stated that its object was to avoid repudiation of the Commonwealth debt, to stop the traditional method of borrowing, and to test the extent to which the resources of the Commonwealth Bank could be utilised to meet tho national needs. Mr Lyons told the caucus that Sir Robert Gibson (chairman of tho bank) had refused to listen to the proposal made to the caucus last week that the Commonwealth Bank should underwrite tho maturing loan. This statement caused an uproar, members demanding to know why Sir Robert Gibson, a servant of the people, should be permitted to act as a dictator. Mr Lyons declared that tho policy proposed by the caucus could only lead to political oblivion. Mr Anstey, the mover of tho motion, is mentioned as the probable Treasurer if Mr Lyons resigns.