POLITICAL STRIFE

Otago Daily Times, Issue 24723, 27 September 1941, Page 9

POLITICAL STRIFE

AUSTRALIAN TANGLE THE BUDGET PRESENTED LABOUR ATTACK LIKELY CANBERRA, (Rec. 7 p.m.) Sept. 26. The Prime Minister, Mr A. W. Fadden, was almost continuously under fire from Labour members during his Budget speech and had to appeal to the Chairman of Committees for a fair hearing. Mr Menzies sat in his own room during most of the speech. Although Mr Curtin declined to comment last night observers say that a Labour attack on the Budget is likely to be based on, first, the proposed increase of Is a week on deferred pay for soldiers; secondly, the proposed interest rate of 2 per cent on compulsory savings; thirdly, taxation of personal exertion on the same scale as income earned from property; fourthly, the proposed compulsory loans by all persons without dependants earning more than £ 100 a year. It is claimed that the deferred pay for soldiers would amount practically to a compulsory loan to the Government without interest. Interest rates on compulsory loans are likely to be a major issue. Labour men say that low wage earners who will be compelled to lend money they cannot afford will receive only 2 per cent. They claim that Tow wage earners should receive at least as much interest on their money as, if not more-' than, private banks receive. Labour has always held that income earned from personal exertion should not be taxed as heavily as income from property. The two Independents, Messrs Wilson and Coles, either of whom could cause the defeat of the Government in the Labour Budget attack, declined to comment on the Budget. National Contribution Scheme The national contribution scheme means that the total payments to the nation will be the same in every State for Australians earning similar incomes. The national contribution will be assessed and from this will be deducted both Federal and State taxes, the remainder being the amount payable as a post-war credit loan. The Federal income tax will not be increased except on higher incomes, where there will be substantial increases. The Federal tax and loan contributions will be deducted weekly from pay envelopes after a date to be fixed. Commenting editorially the Daily Telegraph says; “The Budget was conceived, shaped, and delivered in an atmosphere of grim party political strife, which induced the taxpayer to prepare for unimaginable horrors, but the document itself is not so terrible as most of us expected. If the Labour Party believes the Budget to be bad it must convince Parliament and the people by offering alternative detailed proposals.” The Herald says: “Mr Fadden’s Budget shows unusual imagination and constructive thought in devising new ways of raising further sums from the public. He has undertaken a huge task in finding the means of meeting Commonwealth expenditure of £320,000,000. He outlined new burdens to be placed on the public and foreshadowed much more stringent control of our industrial resources, all of which is welcome evidence of the growth of our war work.” THE TRADING BANKS NO EXCESSIVE PROFITS CANBERRA, Sept. 2S. Mr Fadden stated that, in addition to raising public loans amounting to £54,000,000, the Government would borrow by means of war savings certificates and loans from the banking system, making a total of £122,000,000. He revealed that the trading banks had given an undertaking not to make excessive profits during war-time, and to act in accordance with the policy laid down by the Commonwealth Bank in respect to granting increases in the existing advances, and also to deposit with the Commonwealth Bank all surplus investment funds. The Government intended to establish a mortgage bank to provide facilities for long-term borrowing. Mr Fadden tabled a statement showing the effect of the new contribution plan, which represents the total contributions by means of taxation, State and Federal, and. postwar credits to the cost of the war and Government. Under this, for example, a person with a dependent wife will pay on an income of £2OO about £ll. Following this scale the rates of payment will be £3OO (£33), £4OO (£55), £SOO (£80), £6OO (£110)), £BOO (£180), and £IOOO (£261). I MILITANT LABOUR HOSTILE MOVE EXPECTED (Rec. 1 a.m.) SYDNEY, Sept. 26. Although the average wage-earner is satisfied with the Budget, having regard to what his fellowmen are paying in other British countries, there is increasing evidence that the militant Labour movement in New South Wales intends to foster a hostile move, particularly against compulsory loans. Labour Council officials, Messrs «F. Kelly, J. Carney and J. Maloney, each voiced disapproval of this form of taxation and predicted industrial trouble if it was persevered with. Mr Kelly said that working men on paltry wages were not prepared to stand further inroads into their living standards. Mr Carney declared that men working between 60 and 70 hours a week for, say, £lO a week, were being taxed to the same extent as civil servants working only 40 hours. Naturally they were asking themselves whether it was worth while continuing to sacrifice their health by working excessive hours. Business circles are of the opinion that the Budget will have the effect of considerably reducing spending power and restricting business, particularly time payment transactions.