The Hawera Star. MONDAY, SEPTEMBER 5, 1932. AUSTRALIA COMES THROUGH.

Hawera Star, Volume LII, 5 September 1932, Page 4

The Hawera Star.

MONDAY, SEPTEMBER 5, 1932. AUSTRALIA COMES THROUGH.

Delivered every evening by 5 o clock in Hawera, Manaia. Kaupokonui, Otakeho, Oeo. Piharua, Opunalie, Normanbji Okaiawa, Eltham, Ngaere, Mangatoki, Kaponga, Awatuna, Te Kiri. Mohoe, Lowgarth. Manutahi, Kakaramea, Alto:a. Hurleyville, Patea, Whenuakura, Waverloy. Mokoia, Whakamara, Ohangs i. Iferemere, Fraser Boad, and Ararata.

The announcement of a Budget surplusby the Australian Federal Government met with a deservedly cordial reception in England. The Federal Budget shows a surplus of over £1,300,000 far the past financial year ,and this fully confirms the hopes which have been rising in recent months. It is definite evidence that the Commonwealth has made a remarkable recovery from a ■situation which a year -ago appeared gloomy indeed 1 . At that time the State and Federal Governments were engaged in a strenuous effort to contract expenditure within the limits of income, and there were heavy deficits in some of the States. Some improvement had already been noted by the end of October, but it was impossible then to estimate its importance. Looking back now it appears that Australia even then was getting on her feet, and the movement has since gathered strength. The better internal situation has helped Australian credit in London, and the rise of Commonwealth and State securities has been one of the indications of returning confidence. External factors have done much to bring about still further recovery, and improved market conditions in' Britain, and the better tone in the wool market, which is the latest development, have stimulated trade. This stimulus to trade has come at a time when Australia is called upon, like the other Dominions, to revise her tariffs for the benefit of Britain and the Empire as a whole. The decisions reached at Ottawa, when translated into practical form, must mean that the expansion of exports must go side' by side with larger imports, and it is here that Australia will bo faced with difficulties. To make possible a comprehensive revision of the tariff it will *be necessary to prepare for some readjustment of taxation, and a reduction in Government expenditure is essential if that is to be done. The secondary industries may not be able to 'contribute as largely to the national revenue under lower tariffs as they are now called upon to do, a.nd there may have to be some redistribution of the burden. As a preparation for this Mr Lyons’ Government has decided upon a programme of economies that will relieve the taxpayers of almost £3,000,000 next year. Ministers’ salaries arc cut down by almost one-third, and members’ honoraria by a quarter. The salaries of civil servants are reduced in line with the fall in the cost of living, and there are to be all-round savings on pensions. This Federal action is a lead to the State Governments, which have much financial leeway to make up, and the next essential step is for them to attain Budget equilibrium.