UNPOPULAR TAX

Poverty Bay Herald, Volume LXIV, Issue 19340, 2 June 1937, Page 5

UNPOPULAR TAX

SPECIAL DEFENCE LEVY t CONSERVATIVES OPPOSED SUPPORTERS’ DILEMMA STRAIN UPON LOYALTY (Elec. Tel. Copyright—United Press Assn.) (Reed. June 2, 9.50 a.m.) LONDON, June 1. The Conservative Party motion condemning the special tax on profits as a defence contribution is now supported by 20 members, and a vigorous attack in the committee stages of the Finance Bill is expected. The Conservative motion tabled by eight back-bench Conservatives reads: “The House cannot agree to the second reading of the Finance Bill until arrangements have been made for further investigation into the effect of part 3 the national defence contribution —upon trade recovery and expansion and upon employment, and until the views of those engaged in the trades and businesses affected have been fully ascertained and reported.” In the course of his first speech as Chancellor of the Exchequer, Sir John Simoir, dn; moving the second‘reading of tlie Finance’ BilLlaSt" evening, skid there were no. grounds for abandoning welltried methods which had governed British policy in economic matters in recent years. “Like my predecessor, I -attach the very greatest importance to international co-operation, both in monetary and economic fields, and no efforts on our part will be lacking to secure and extend such co-operation, he said.

All Parties Critical

The debate revealed how unpopular the tax is with all parties.

The Times declares that Sir John Simon, the Chancellor of the Exchequer, dashed himself vainly against the iceberg of general dissent. The Parliamentary correspondent of the Manchester Guardian pays a tribute to the moderate but trenchant opposition voiced by Dr. Hugh Dalton (Lab., Bishop Auckland), and singles out the phrases: “The tax is an administrative monstrosity and a financial fantasy. The Prime Minister should take it back and try again.”

Criticisms voiced by Sir Francis Acland (Lib., Cornwall North) were listened to with particular respect, as Sir Francis, a practical business man, first favoured the tax and then was converted to the opposition to it by its complexities and inequities.' Mr. Clement E. Davies (Nat.-Lib., Montgomery) summed up the general feeling of the Government supporters by saying: “The Prime Minister is presuming on his position and our loyalty, which is straining to breaking point.” .