Big Cuts Sn Australia

Northern Advocate, 3 September 1947, Page 5

Big Cuts Sn Australia

Saving Dollars . . .

(Rec. 1.30 p.m.) CANBERRA. This Day. Immediate sweeping cuts in imports of car chassis, tobacco, newsprint, aircraft and miscellaneous goods from North America which were decided on by the Federal Cabinet last night, are aimed at reducing Australia’s expenditure by about $40,000,000 a year. This approximates about half of the difference between export and import figures estimated for this financial year.

The Government does not expect unemployment to result from the import cuts although it recognises that some people may be forced to transfer to other industries.

Though the cuts do not close the gap between current expenditure and expected dollar earnings, Australia will not have to call on Britain for as many dollars as in the last financial year when $100,000,000 passed to Australia to meet commitments m North America. DELIVERY OF PLANES

Five Consolidated Convair and four Lockheed Constellation airliners already ordered from America will not be affected by the cuts and will be delivered soon, but they will be the last American airliners obtainable for some time.

Petrol restrictions may affect proposed new air services. The car shortage will become worse as at present Australia is starved for cars.

In New South Wales alone unfulfilled orders for motor cars amount to over 22,000 and the number released each month is only 1000. SPARE PARTS SHORT

The shortage of spare parts creates its own problem as a large number of cai’s and public vehicles are practically worn out.

The textile position is not known yet. A stock census of clothing and textiles is being taken and will be placed before the rationing commission at its next meeting in Melbourne.

The travel allowance restriction is not considered serious. The Commonwealth Bank already reviews every application for dollars and it is considered that even if the present allowance of S3O a day for business and pleasure is cut by half, people could still manage. LESS FROM BRITAIN

When Commonwealth financial experts meet in London for the dollar talks. Sir Stafford Cripps will ask that the Dominions cut imports from Britain at the same time as they save dollars by buying less from the United States, says the Daily Express political correspondent. The diversion of goods to the Dominions to make up for reduced American imports might seriously affect Britain’s prospects of recovering from the dollar crisis.