DEARER FOOD & CLOTHING WHEN AUSTRALIAN SUBSIDIES END

Gisborne Herald, Volume LXXV, Issue 22655, 4 June 1948, Page 5

DEARER FOOD & CLOTHING WHEN AUSTRALIAN SUBSIDIES END

(N.Z.P.A.—Reuter— Copyright.) SYDNEY, June 3. “The Federal Cabinet is expected to decide on June 15 to cease paying £30,500,000 yearly in subsidies.” writes the Sydney Daily Telegraph’s representative in Canberra.

This financial year the Government will pay £40.000.000 in subsidies. To compensate for the rise in prices, the Cabinet is expected to cut the taxation of lower incomes by £30,000,000 yearly from July 1 Most Ministers favour the lifting of all subsidies which were introduced to stabilise retail prices, but are prepared tc continue the payment of subsidies for special reasons, such as the encouragement of primary production and the stabilisation of shipping freights. When tiic Government lifts the bulk of the subsidies which, the correspondent says, will be about September 17, the price of tea will rise from 2;G to 5'3 a lb-, and potatoes will also be dearer. The price of clothing will increase by a to 10 per cent. At present the Government pays yearlv subsidies of £0,300,000 for tea. £3,000.000 for potatoes, £ 10.000_.000 for woollen manufactures and £5,000.000 for imported raw materials and textiles. “It is believed that the Commonwealth Government is contemplating relinquishing controls, such as the rationing of clothing and food, capital issues and marketing, says the Sydney Morning Herald A section of the caucus is also expected to urge at the meeting an June 15 that all subsidies be reviewed.” The New South Wales Government is expected to bring down blanket price control legislation similar to the Oucenslond Profiteering Prevention Act of 1920 to meet the'emergency of the endin" of Federal controls within three months.

All States report that they are not likely to be caught unprepared by the Federal Government action in lifting the controls.