FEDERAL ECONOMY PLAN

Otago Daily Times, Issue 21431, 4 September 1931, Page 9

FEDERAL ECONOMY PLAN

PREMIERS PESSIMISTIC DISCUSSION At CONFERENCE DEFICITS UNDERESTIMATED (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, September 3. The Herald says that the Premiers’ Conference at Melbourne considered the financial position of the Federal and State Governments with respect to the economy .plan in an atmosphere of uncertainty and pessimism. It was realised that the aggregate of the Government deficits for this financial year will be so much in excess of the £15,000,000 which the banks agreed to meet that the economy plan, on its present basis, will be a failure. It is understood that - the aggregate additional deficits for the financial year are, approximately £3,000,000. From the general trend of the dicussion it seemed that the Premiers felt that the banks will have a real difficulty in finding the additional credit and resort will have to be made .’to a further effort to restrict expenditure and to increase the revenue. The great difficulty of imposing further taxation was recognised, but the Premiers were inclined to take the' 1 view that if further sacrifices were needed there should be no hesitation in applying for it. SAVINGS BANK INTEREST. NEW RATES ANNOUNCED. SYDNEY, September 3. The commissioners of the Government Savings, Bank has decided that the interest rates for the new business division of the Savings Bank shall .be 3$ per cent, up to £SOO, and' v 3 per cent, from £SOO to £IOOO. Friendly societies’ accounts will be allowed 3i per cent, on all balances up to amounts approved. Deposits on Monday of Tuesday next will carry interest for a full mbnth. There will be no fee for keeping accounts in the rural bank of the new : business division up to the end of December, 1931. STATE INDUSTRIAL. AWARDS. REQUEST FOR SUSPENSION. MELBOURNE, September 3. The employers’ organisations will meet in conference, next week, and will formulate a request to all the Governments for the temporary suspension of the State industrial awards or such awards . as are, hampering trade and commerce. • Representatives of the Chamber of Commerce and manufacturers argue that njany businesses and industrial concerns are. :tn such a parlous .state that they must have an immediate respite from industrial restrictions.. The alternative will be collapse and much additional unemployment. . - i j