AUSTRALIA’S FINANCES

Manawatu Standard, Volume L, Issue 252, 19 September 1930, Page 7

AUSTRALIA’S FINANCES

MR BAVIN’S WARNING. BALANCING THE BUDGET. ECONOMY AND NOT TAXATION. (United Press Association—By Electric Telegraph —Copyright.) Received September 19, 10.5 a.m. SIDNEY, Sept. 18. Mr T. R. Bavin, the State Premier, delivered a policy speech at Kdlara, a suburb of Sydney, this evening. Mr Bavin warned the electors that if the financial agreement reached at the Premiers’ Conference at Melbourne was repudiated by any or all of the States, there would be no escape from disaster. Mr Bavin, added: “We are, therefore, fighting in this State the battle of the whole of Australia. I have undertaken on behalf of New South Wales to balance our Budget, and now ask for a free hand to do so. Me shall aim at equality of sacrifice; relief for unemployment; reduced cost of public services; maintenance of the highest standards of living that the economic conditions will permit, and insistence that the reduced costs of production shall be accompanied by a corresponding reduction in costs of commodities.

“We will do our utmost to meet our obligations by economy rather than by taxation. AVe will provide loans at low ■ rates of interest for primary producers who are prepared to give employment, and will continue our. efforts for the relief of unemployment. We will give relief to mortgagors of property, who are unable to meet their obligations.” , Mr Bavin reviewed the finances of the State and Commonwealth, pointing out that the national income had diminished by £80,000,000, and he estimated that the total deficit of the Commonwealth and the States for the current year, unless expenditure was drastically cut down, would amount to £20,000.000. He ' emphasised that Australia’s difficulties were only postponed, not but if it should be apparent that they were making a genuine effort to honour their obligations, they would be able to convert the loans as they fell due at a lowey rate of interest. He said that before next June they had to raise £49,000,000 from the Australian market for the conversion of internal loans. DEBT REPUDIATION. ANOTHER DENIAL. (British Official Wireless.) RUGBY, Sept. 17. Sir Granville Ryrie, High Commissioner for. Australia in London, has written to the Press with reference to the suggestion, to which publicity had been given, that Australia might consider repudiating her war debt. The High Commissioner says Australia has never yet and never will fail to meet her obligations at the due dates, and recalls a statement made by the Australian Prime Minister, Mr Scullin, to the-effect: “I regard the Australian as I would regard a' personal debt. There. will be no repudiation of our obligations by this.' Government. ’ ’ , . , ■ Mr Scullin has since declared that repudiation would not only be disastrous and has described the suggestion as “utter nonsense.”