A CLIMB DOWN

Grey River Argus, 3 June 1937, Page 5

A CLIMB DOWN

ON DEFENCE TAX By New Prime Minister WITHDRAWN TO SUIT INDUSTRIAL CAPITALISTS. (British Official Wireless). RUGBY, June 1. The Prime Minister, winding up the second reading debate on the Finance Bill in the Commons, announced the withdrawal of the proposed national defence contribution graduated tax on the growth of profits. Air Chamberlain’s speech followed a sustained powerful attack on the proposal, ito which Air Winston Churchill made an important contribution. A Conservative motion condemning the defence -contribution was supported by twenty members, and foreshadowed a vigorous attack during the committee stageLast night’s debate revealed how unpopular the tax was among all parties. “The Times” declared: “Sir J. Simon dashed l himself vainly against the iceberg of general dissent-” The “Manchester Guardian’s” Parliamentary correspondent pays a tribute to Dr Dalton’s moderate but trenchant opposition, and singles out phrases, “The tax is an administrative monstrosity and financial fantasyThe Prinfe Minister should take it back and try again.” Sir! Fijancis Aelanfl’s criticisms were listened to with particular respect, as being a practical business,man who first favoured the tax and then was converted to opposition by its complexities and iniquities. Air Clement Davies summe-l up the general feeling among Government supporters when he said: “The Prime Minister is presuming on his position and our loyalty, which is .straining to breaking point-” The city was hopeful that the Defence Tax would be abandoned. The Government, was perturbed at the strength off the opposition revealed in the Business on the Stock Exchange remained verly restricted, but the tone is more confident-

After a general defence of the Budget proposals against Opposition criticism, the Prime Afinister turned to Part 3 of ifhe Bill, against which criticism had been directed, chiefly from the ranks of (he Government’s own supporters- He said he had .to admit there appeared to be genuine alarm, as the result of the proposed new tax, which held up business to an extent which was very undesirableWhen the Bill was in committee, the Chancellor (Sir J- Simon) would not proceed with Part 3 providing for national defence contribution, and meantime he would work out other proposals for a similar tax upon profits of industry. The tax would be Resigned to produce not less than 25 millions in a full year. The Bill wa s read .the second time. Mr Chamberlain said he was told the tax was expected to give a great deal of trouble, to cost a great deal of money, and to distract people from attending to ordinary routine of business- On the other hand, industry wished it to. be understood .they did not challenge the propriety of. finding the amount he wanted from profits.

AN ULTIMATUM? “It seems to me I should not onh b e something less than prudent, but should be stupid, if I were to persist in a particular method of getting what I want if I can get it by simpler methods and in larger amounts-’’ That was what, after consultation with the Chancellor of the Exchequer, he proposed) to do- He would not anticipate what the proposals of the.Chancellor would be- This would require a new financial resolution and the first intimation the House would have of the nature ofl the new proposals would be when the Chancelloi tabled th e resolution which would be on the earliest possible occasion. At the end of Mr Chamberlain’s speech/ ithe Opposition Leader said he thought they ought to recognise the way in which the Prime Minister had met the opinion of the House. It was right Aey should recall the fact they had a Government that was responsible to the will of the democraticallyelected AssemblyChamberlain's Retreat HAILED AS “ACT OF COURAGE” LONDON, June 2. Tremendous cheers greeted the. Prime Minister, Mr N. Chamberlain’s announcement of the abandonment of the profit tax. The cheers expressed the relief, not only of members of. the House of Commons, but also of industrialists throughout Britain. It is expected that confidence now will speedily return to the markets. Th e Conservative and radical press combine in editorial approval of the abandonment. The “Daily Telegraph” says: Mr Chamberlain has inaugurated his office as Prime Minister with an act of high courage.