BUDGET NEWS

New Zealand Herald, Volume LXXIII, Issue 22403, 27 April 1936, Page 11

BUDGET NEWS

LONDON SCANDAL ALLEGED LEAKAGES HUSH FOR INSURANCE AN INQUIRY ORDERED By Telegraph—Press Association —Copyright (Received April 'ill. 5.5 p.m.) LONDON. April 25 The Daily Telegraph states that as the result of alleged leakages of Budget news the practice of insuring against Budget risks may be drastically regulated and possibly banned altogether. It was disclosed at a special meeting of Lloyd's committee that while Budget insurance usually did not amount to more than £IO,OOO or £15,000. distributed in £IOO and £250 lots, the market was swamped with orders on the last Budget day. These orders amounted to many tens of thousands of pounds, although previously no interest had been taken. The rate against an increase in income-tax rose from 15 guineas early in the day to 45 guineas in the afternoon. Tea insurance rose from 20 to 45 guineas. It was impossible to estimate how much the " prescience " of the insurers cost the underwriters. The Telegraph says all the political parties are deeply concerned over the alleged leakages. It is understood that the Government has ordered a rigorous inquiry and that Lloyd's committee has asked the underwriters to give the names of all who insured against the risk of increased income-tax and tea duties.

The Chancellor, Mr. Neville Chamberlain, will make a full statement on the matter on Monday. The question of the alleged leakages was raised in the House of Commons when Major C. R. Attlee, Leader of the Labour Party, asked for information. Mr. Chamberlain did not reply. The Parliamentary correspondent of the Times said thjit Mr. Chamberlain did not reply to Major Attlee because speakers had exceeded the allotted time, thus preventing the Chancellor from dealing with all the matters raised. Sir Assheton Pownall, a member of Lloyd's, stated to-day that there had been a leakage for the first time in his long experience. No one paid 45 guineas per cent unless he was certain he was backing the horse after the race was won. REPLY TO CRITICISM CHANCELLOR ON DEFENCE GOVERNMENT'S ACTIVITIES (Received April 26, 5.5 p.m.) British Wireless RUGBY, April 25 The main debate on the Budget in the House of Commons was continued on Thursday evening and the formal resolutions were accepted without division. In replying to the debate the Chancellor of the' Exchequer dealt with the criticisms of Mr. Winston Churchill of the pace at which the Government is pursuing its preparations for defenoe. He said that no doubt if powers were taken to control the country's industries, combined with some control of labour, the Government's programme could be speeded up materially, but many other implications were bound to be associated with a step of that kind. Everyone could imagine circumstances in which it might become necessary to take such powers, but if it assumed them prematurely the Government would have fx/bear the responsibility for the dislocation of industry which would result.