FEDERAL FINANCE PLAN.

New Zealand Herald, Volume LXVIII, Issue 20903, 19 June 1931, Page 11

FEDERAL FINANCE PLAN.

ADOPTION NOT CERTAIN.

' LABOUR OPPOSITION.

APPEAL BY, MR, SCULLIN.

MEASURE BEFORE HOUSE.

HUGE COST OF RELIEF.

By Telegraph—Press Association—Copyright. (Received Juno 18. 9.-15 p.m.) SYDNEY. June 18. Tt is not by any means certain that tho plan evolved by tho Premiers' Conferenco for the financial rehabilitation of Australia will be adopted.

Recent events discloso growing opposition on (ho part of Labour organisations in tho eastern States, to tho plan, in spite of an earnest appeal by the Prime Minister, Mr. J. H. Scullin, to let it go through, in which he shows the danger of default and a complete stoppage of credit. It is asserted privately that a majority of tho delegates to a special meeting of (lie executive of tho Federal Labour Parly, which is now sitting at Canberra, are distinctly hostile to any reductions in salaries or pensions, and that they intend to urge a dotiblo dissolution on the fiduciary currency issue.

Ou the other 'hand, an unofficial statement was made in Canberra to-day that tho Federal Government will in no circumstances deviate from its intention to give full effect to tho plan of tho Melbourne conference.

A complete endorsement of the plan has already been given by the Governments of New South Wales, Queensland, South Australia and Tasmania. In the House of Representatives at Canberra to-day the Prime Minister moved the second reading of the bill to approve of the Premiers' financial agreement, which covers the debt conversion plan. Ho reviewed the whole history of Australian indebtedness. Australia had had no credit in London since September last, and whatever new expenditure had arisen had been caused by world conditions. For example, the adverse exchange was costing £10,000,000 a year. Tlio unemployed in Australia now numbered 360,000, the cost of whose sustenance and relief was £9,000,000 a year, while if no action was taken to cope with the drift this cost would bo swollen to £13,000,000 a year. The debate has not concluded.

INCREASE IN TAXES.

SALARIES TO BE REDUCED.

CERTAIN PENSIONS STOPPED,

(Received June 19. 12.35 a.m.) CANBERRA, Juno 18.

In tho House of Representatives to-day the Treasurer, Mr. E. G. Theodore, announced that legislation would be introduced immediately increasing the sales tax from 222' 2 to 5 per cent., and 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.

Cuts of 20 pci" cent, would also be made without delay in the salaries of public servants and ex-soldiers' pensions, but duo consideration would be given to indigent cases.

Pensions would in future be denied to widows of soldiers who had remarried, and also to the children of such remarriages.