WILL OF THE HOUSE

Poverty Bay Herald, Volume LXIV, Issue 19340, 2 June 1937, Page 6

WILL OF THE HOUSE

CABINET CONFORMITY

CHANGE IN TAX PLAN

SPECIAL DEFENCE LEVY

NEW METHOD PROMISED

(British Official Wireless.)

llecd. 1.15 p.m. RUGBY, June 1. The Prime Minister, Mr. Neville Chamberlain, in winding up the second reading debate on the Finance Bill in the House of Commons, announced the withdrawal of the proposed national defence contribution through it graduated tax on the growth ol profits. Mr. Chamberlain’s speech followed a sustained and powerful attack on the proposal to which Mr. Winston Churchill (Con., Eppin), made an Important contribution.

After it general defence of the Budget proposals against the Opposition criti. cism, the Prime Minister turned to part 3 of the hill against which criticism had been directed, chiefly from the ranks of the Government’s own sup. porters. Ho said that he had to admit that there appeared to be a genuine alarm as a result of the proposed new lax which held up business to on extent which was very undesirable. The, Chancellor said that he would not proceed with part 3 providing for the national defence ' contribution and meantime lie would work out other proposals for a. more simple tax upon the profits of industry. The tax would be designed to produce not less than £25,000,000 in a full year. Finance Bill Approved

The bill was read a second time. Mr. Chamberlain said ho was told the tax was expected to givo a great deal of trouble to cost and would interfere with people attending ttheir ordinary routine business. On the other hand industry wished it to he understood that it'did not challenge the propriety of finding the amount lie wanted from profits. “It seems to me that I should not only he something less than prudent, hut I should be stupid if I were to persist in' a particular method of getting what I want if I can get it by simpler methods and in larger amounts.” said Mr. Chamberlain._ , J'hat was what, after consultation with the Chancellor of the Exchequer, Sir John Simon, he proposed to do. He would not anticipate what the proposals of tho Chancellor would he.

This would require a new financial resolution and the first intimation tho House would have of the nature of the new proposals would he when the Chancellor tabled the resolution. That would he on the earliest possible occasion. At the end of Mr. Chamberlain’s speech, the Opposition leader, Mayor C. R. Attlee, said that he thought they ought to recognise the way in which the Prime Minister had met the opinion of tho House. It was right that they should recall the fact that they had a Government that was responsive to the will of a democratically-elected assembly.

BRITAIN’S PROTEST

BOMBS NEAR DESTROYER

ASSURANCES DESIRED

(British Official Wireless.) Reed. 1.30 p.m. RUGBY, June 1. The British Charge d’Affaires at Valencia has been instructed to lodge a protest with the Spanish Government in regard to the air attack of last Friday, when bombs fell near the British destroyer Hardy. The satisfaction of the British Government has been conveyed to the Spanish Government at its readiness to indicate a safety zone oil Palma, and the hope is expressed that there will he no repetition of the recent incidents.