AUSTRALIA’S PROBLEMS

Poverty Bay Herald, Volume LV, Issue 17498, 19 June 1931, Page 7

AUSTRALIA’S PROBLEMS

PLANS FOR RECOVERY TALK OF OPPOSITION SERIOUS FINANCIAL POSITION (Elec. Tel. Copyright—United Press Assn.) CANBERRA, June 18. it is not by any means certain that the Premiers’ conference plan for the financial rehabilitation of Australia will be adopted. / Recent events disclose growing opposition on the part of Labor organisations in the eastern States to the plan, despite the earnest appeal by the Prime Minister to let it go through, owing to the danger of default and the complete stoppage of credit. it is asserted privately that a majority of tlie delegates to a special meeting of the Federal Labor executive, now sitting at Canberra, is distinctly hostile to any reductions in salaries or pensions and intends to urge a double dissolution on the fiduciary currency issue. On the other hand, ail unofficial statement, made in Canberra to-day, is that the Federal Government will in no circumstances deviate from its intention to give full effect to the Melbourne conference plan. Complete endorsement of the plan lias already been given by the Governments of New 'South Wales, Queensland, South Australia and Tasmania.

The Pnine Minister, in moving the second reading of the bill to approve the conference financial agreement, which covers the conversion plan, reviewed the whole history of Australian indebtedness, lie said Australia had had no credit in London since September last and that whatever new expenditure had arisen had been caused by world conditions. For example, the adverse exchange was costing £10,000,000 per year. The unemployed in Australia now numbered 360,000, the cost of whose sustenance and relief is £9,000,000 per year, while if no action is taken to cope, with this drift, this cost would be swollen to £13,000,000 per year. The debate has not concluded.

The Senate passed the bill authorising the shipment of £5,000,000 worth of feoid.

In the House of Representatives, Mr. Theodore, the Treasurer, announced that legislation would be introduced immediately increasing the sales tax from 2 5 to 5 per cent.; tiie primage duty from 4to 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. The 20 per cent, cuts would, also be made without delay in public servants’ salaries and soldiers’ pensions, but due consideration would be givenindigent'eases. Pensions would in future be denied widows of soldiers who remarried, also the children of such remarriages.