The Budget

Hawke's Bay Tribune, Volume XV, Issue 126, 4 May 1925, Page 5

The Budget

Swelling Chorus of Criticism SILK DUTY AND INSURANCE. A TREASURY EXPLANATION. (By Cable-Press Association— Copyright.) London, May 3. Mr. Churchill’s Budget has been the subject of an increasing volume of criticism during the week-end. The chief points of attack are the silk duty and the added burdens to industry in consequence of the insurance scheme. “Reynolds News ’ goes so far as to say that the silk uuty will be withdrawn and that the insurance proposals will be modified, postponed or withdrawn entirely, lhe effect of such withdrawal would be to cut the heart out of the Budget entirely. There is no doubt, however, that the iiudget proposals are undergoing review at the Treasury and modifications of the original proposals are not unlikely. Mr. ‘'J. L. Garvin, discussing the Budget in the “Observer,” says: “Britain has been kept down by unexampled taxation. No mortal man could put this situation right by one first Budget. The work can only be done by a connected series of Budgets. The nation never had clearer or graver duty than to strengthen the hands oi its Chancellor.” The outcry which has developed over Lhe whole country against Mr. Churchill’s projKised silk duty, has resulted in the Budget being nicknamed the •Siik Stocking Budget.” In consequence ot the outcry the Treasury yesterday issued a statement to lhe effect that the criticisms will be considered and the export trade will be consulted. It is now declared that it was never intended that because an article contained a little silk it was to be taxed to the extent of one-third of its value. There is an immense range of goods m which a small proportion oi silk is employed, and it is admitted that the effect of imposing a lax of one-third on the lull value of such articles would make the uuty highly protective. It is understood Mr. Churchill has been in consultation with the Customs authorities, the re, suit of which will be a system oi charging calculated to carry out Mr. Churchm’s real intentions. lhe most pointed criticism of the silk duty camo in the House of Commons irom Miss Wilkinson, who declared that artificial silk had taken tne place among working women ot wool, which they could not afford to ouy. It was largely used tor knitted jumpers, and one pound at three shillings was sufficient for a jumper. She proceeded to argue that -a tax of three shillings per pound meant a 1(10 ]M*r cent, increase, but a tax oi lour shillings per pound on the heavier silks, used by rich women, meant only G 6 2-3 J»‘‘r cent. Concerning stockings, Miss Wilkinson said a sixpenny tax might he a matter of indifference to women who bought stockings at two guineas a pair, but it meant a 33 1-3 per cent, increase to women who nought artificial silk stockings at 1/6?, per pair. Lord Oxford, speaking at Glasgow yesterday, declarcii that the silk lax was a tax upon tho raw material of a great inuusiry. Sir Alfred Aloud, speaking at Cardiff, asked why destroy one oi the lew prosperous industries winch the country had, It was a mystery who advised Air. Churchill to take such a stupid step, and he was certain Air. _hurcnili would be obliged to abandon such a proposal. (A. and N.Z.) CAREF U LL Y AJI) U STEI) BALANCES. CHANC ELLOR’S DEFENCE OF HIS BUDGET. London, May 2. Mr. Churchill, addressing the Primiosu League at Albert Hall, said his budget consisted of a series of caremlly adjusted balances. The tax on silk wouid produce exactly £4,OUO,OUU tins year and £7,000,000 next year, which would precisely meet the cost of tho relief given on earned incomes to tlie smaller .ratepayers, lie was confident tho silk Lax would not diminish employment and wouid be paid by an enormous number of people in inconceivably small instalments. Women, if convinced it was for the country’s good, would not hesitate to assume the burden of the tax. Another balance in tho Buuget was that the McKenna, duties would fully del ray the cost of Imperial preierence. xteierring to the previous night s scene in the House of Commons. Air. Churchill vigorously assailed his Labour critics. Air. Snowden had said it was a rich man’s Budget. Let him and his Socialist friends say that at the New leaf to the 200,000 widows who would then be drawing pensions, also to the 6,000,000 who were assured of pensions. or say to the old age jiensioners: “Comrades, we meant to give you those on a non-contributory basis, but we had to go and help our Russian friends first.”- (Reuter.) PREFERENCE AND MIGRATION. London, May 2. The “Morning Post,” in an editorial discussing tho Budget’s provision for preference, says: “When this system is once working it will make practicable comprehensive migration within the Empire, for which wo have waited so long. Although the Budget makes no provision for such, migration, its every line shows tho necessity for it, for the new insurance means an added charge on industry already burdened by over 1,000,000 unemployed.” The leader incidentally suggests tho im.mediate modification of the Portuguese treaty to enable Australia and South Africa to label their wines as port.— (A. and N.Z.)