AUSTRALIAN BUDGET.

New Zealand Herald, Volume LXVII, Issue 20624, 24 July 1930, Page 8

AUSTRALIAN BUDGET.

SHOCK TO COMMUNITY,

GOVERNMENT CRITICISED,

PRIME MINISTER'S DEFENCE.

[FROM OUR OWN CORRESPONDENT. J SYDNEY, July it.

Australia lias riot, yet recovered from 1 lie shock occasioned bv the presentation of (lie Budget List week—a Budget with countless new taxes which will try patience of people, who consider that they arc already overburdened. Of course, con* ditions demanded something drastic and jriosfc of the taxpayers were prepared to make some sacrifice. At the same time they claim that, the Budget is far too one-sided, mid that, it, would bo more equitable if tho Government sacrificed some of its pride. The reference is to tlie failure of tho Government to effect savings in the civil service, by way of reducing salaries, as is being done by most of the States.

The Federal Government, being a Labour Government, is opposed to a reduction in wages and salaries. That may be all very well, but, if is being asked, do not the circumstances warrant remedies that are distasteful to the Labour policy. It is pointed out that in spite of the condition of the finances, the Federal expenditure during the current year will be even greater than it was last year.

The Budget has certainly had the effect of combining the taxpayers for the purpose of evolving defensive measures, and the other day a strong organisation was formed in Sydney. Jt. is proposed that all the States should combine and send a strong deputation to Canberra to protest against tho added impost while Federal expenditure remains unchanged. Ministers' and Members' Salaries, The feature most generally commented upon is the failure of the Government to propose any reduction in the salaries of Ministers and members of both Houses. To this the Prime Minister, Mr. Scullin* has replied that if he closed every department, with the exception of the Postal Department, the Government would save only £3,000,000 a year. He ha* pointed out that there would still be £14,000,000 to be bridged, and broadly, the only issue was, whether it was to be bridged by repudiating interest on war and other debts, and reducing pensions, or by spreading the burden among all sections of the community. He left it to the people to judge which would be tha fairer course. Despite criticism the Gov. ernmeut would go along fearlessly facing the position and balancing the Budget. Mr. Scullin maintains that critics of the Budget have advanced only one concrete suggestion—that tho opportunity has arisen for a reduction of war, invalid and old age pensions, the maternity bonus, and a reduction of bounties to industries that are being assisted. The rest of tha criticism ho has passed over as "vagua outpourings of critics without any real examination of the figures." It is admitted by Mr. Scullin that tha votes for departments and general services have increased by £924,000 this year, but he points to the'eauses— £630,000 for sinking fund on war and other debts, , £1600.000 more for invalid and old ago pensions owing to the increased number of applicants on account of the depression: £140.000 more for war pensions and repatriation services; and £140.000 for interest on overdraft and exchange on remittances to London, entirely due to tho acute exchange position. " Mr. Scullin points out that this accounts for an increase in expenditure of £1,640,000, and it was impossible for 'the Government to reduce it. Oost of Unemployed Relief, Mentioning also the additional £1.000,000 for unemployed relief, Mr. Scullin asks if there is any critic who would say that/these increases are due to Government extravagances. Mr. Scullin contends that when only £3,000,000 is available for all the Government, departments for a great country like Australia,charges of extravagance must be uu« founded. .All the rest of the expenditure I is soaked up in interest on war and other debts, in war and other pensions, and lika ! obligations. It has been estimated that the new: sales tax will cost the people of Sydney, another £1,500.000. This will, of coarse/ mean an increase in the cost of living, and is being criticised mainly on that account Tho details of this tax have nob been made known, and it will probably be another week before the bill will b« introduced. It will not be It will, of course, be on the lines of the Canadian sales tax, and a Canadian expert is at present in Canberra assisting the Government in the framing of the new, legislation. SAVING OP £4,000,000. PROPOSAL BY OPPOSITION". CANBERRA, July 23, Tho principal feature of the debate on the Federal Budget was an address by the Leader of the Opposition, Mr. J. G. Latham. He gave details of his proposal to reduce the. Estimates by £4,000,000. These included withdrawing the proposed grant of £1.000.000 to the States for unemployment relief and limiting the matemitv bonus to persons in receipt of not more than £6 a week.