BRITISH BUDGET

Hawera Star, Volume XLVII, 4 May 1928, Page 9

BRITISH BUDGET

USE OF SINKING FUNDS. METHODS CRITICISED. MR. CHURCHILL’S BOLD PLAN. (UNITED PRESS ASSOCIATION—BV ELECTRIC TELEGRAPH—COPYRIGHT.) (AUSTRALIAN PRESS ASSOCIATION.) Received 2.10 p.m. to-day. . LONDON, May 3. In the House- of Commons, Mr. H. B. Lees-Smith (Labour) moved an amendment to tiie Budget resolution transferring last year’s surplus to rating relief instead of going to the redemption of the future debt. He said that he never objected to Mr. Chur chill’s going hack to the policy of a. fixedsinking fund charge, but the charge was too small. Mr. Churchill was wangling with note reserve and saving certificates and taking money from the old sinking fund for the new, which was an attempt to deceive the public. Mr. F. AV. Pet hick Lawrence said that Mr. Churchill was guilty of “shady” window-dressing of national accounts. He hacl aodpted devices, unworthy of the high position of British finances. The truth was that- Mr. Churchil wanted to announce great tax reductions before the election nextyear. Therefore he was raising unnecessary sums this year. Hon. Walter Runcimau said that the nominal sinking fund of £65,000,000 had been whittled down to such asmall sum that the effect of the sinking fund had been destroyed. He saw no chance- of the national creditimproving or the financial position favouring industry till they approached the world’s lowest interest standards.

Sir L. AYorthington-Evans stated that the net reduction of the debt, due to the operation of the sinking fund in the past four years, was £153,000,000. If the credit of Britain did not increase as quickly a.s that of other countries in recent- years, this was not due to the non-effectiveness- of the sinking fund, but, the difficulties wherewith the Chancellor of the .Exchequer had to struggle through maturing of debt and the flotation of loans in London by the Dominions amounting to over £400,000,000. If they wanted the rate relief plan they must finance it. If a surplus from the sinking fund was not available, fresh taxation must be found. Mr. D. R. Grenfell said that financiers felt- that Mr. Churchill was trying a hold plan to assist industry, hut he- believed that the suspension of the old sinking fund was really a- had step and totally unnecessary this year. Mr. Lees-Smith’s amendment was defeated by 217 votes to 125.