PROPOSED PLAN

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 5

PROPOSED PLAN

REHABILITATION OF AUSTRALIA

GROWING OPPOSITION

IN LABOUR CIRCLES

(United Press Association—By Electric Telegraph—Copyright) SYDNEY, 18th June. It is not by any means certain that the Premiers’ Conference plan for the financial rehabilitation of Australia will be adopted. Recent events have disclosed growing opposition on the part of Labour organisations in the Eastern States to the plan, despite an earnest appeal by the Prime Minister to let it go through, and the danger of default and the complete stoppage of credit. It is assorted privately that the majority of delegates to a special meeting of the Federal Labour Executive, now sitting in Canberra, are distinctly hostile to any reductions in salaries or pensions, and intend to urge a double dissolution on the fiduciary currency issue. On the other hand an unofficial statement was made in Canberra to-day that the Federal Government will in no circumstances deviate from its intention to give full effect to the Melbourne Conference plan. Complete endorsement of the plan has already been given by the Governments of New South Wales, Queensland, South Australia and Tasmania.

REDUCING THE DEFICIT

INCREASED TAXATION

SALARY AND PENSION REDUCTIONS CANBERRA, 18th June. In the House of Representatives Mr Theodore, Treasurer, announced that legislation was being introduced immediately increasing the sales tax from 2j,to 5 per cent., the primage duty from 4 to 10 per cent., and also increasing the income tax. It was thus hoped to reduce the deficit from £20,000,000 to £4,500,000. ' Twenty per cent, cuts would also bo made without delay in public servants salaries and ex-soldiers’ pensions, but due consideration would be given indigent cases. Pensions would in future be denied to widows of soldiers who re-mar-ried, and also lo children of sucli remarriages.

REVIEW BY PRIME MINISTER COST OF UNEMPLOYMENT CANBERRA, 18th June. The Prime Minister in moving the second reading of the Bill to approve the Premiers’ Conference financial agreement, which covers the conversion plan, reviewed the whole history of Australian indebtedness. He said that Australia had had no credit in London since September last, and whatever new expenditure had arisen had been caused by world conditions. For example, adverse exchange was costing £10,000,000 per year. The unemployed in Australia now numbered 360,000, the cost of whose sustenance and relief is £9,000,000 per year, while if no action were taken to cope with the drift this, cost would be swollen to £13,000,000 per year. The debate has not concluded. SENATE APPROVES CANBERRA, 18th June. The Senate passed the Bill authorising the shipment of £5,000,000 worth of gold. /