THE BRITISH BUDGET.

Taranaki Daily News, 3 May 1919, Page 5

THE BRITISH BUDGET.

DISCUSSION ON ESTIMATES. UNEMPLOYMENT DONATION. COST OP PREFERENTIAL TARIFF. London, May 1. In- the House of Commons, Sir R. S. Home, Minister of Labor, defended the unemployment donation, for which the estimates for the current financial year provided 25 millions, The main reason of unemployment was the deliberate policy of maintaining the blockade. The country could not say that the unemployed should not receive compensation owing to conditions which were necessary to achieve the full fruits of victory. A million were drawing the benefit, of whom 240,000 were demobilised soldiers. The latter were guaranteed for a year against unemploymtfiit A hundred thousand workers in the cotton trade were drawing the benefit. The scheme had teen greatly abused, but there was little foundation for the criticism. It was intended to appoint a committee to inquire into the administration of the scheme.

The greatest difficulty was the question of domestic servants. After munition work, the gi;ls would not return to domestio service. Unemployment donations to 17,000 girls had been cancelled. Industry had re-absorbed since the armistice three million workers, SO per cent being ex-soldiers. The most hopeful feature of the new labor arrangements was the formation of industrial councils to bring workers and employers together to negotiate. .Thirty-one existed, covering two million workers, and twenty-one drafting committees covered another million.

Though the unemployment donation could be justified as a temporary expedient it could not be ■ maintained in order to preserve industrial peace. Labor was anxious owing to the Government's failure to provide employment, that there might be a serious position next winter unless something was done.

He (name missing) deplored that Sir R. S. Home had not hinted at any alternative policy to the donations. He urged the Government to explain why the blockade was maintained. It was a blockade of ourselves, and was causing unemployment and checking industrial expansion. Sir G. G. Banbury urged the stoppage of donations at an early date, except for ex-soldiers. They were ruinous and demoralising. Mr Chamberlain said that the preference on wines should be effected_by a reduction in favor of the Dominions of the present duty of le 3d and Is per gallon, according to strength. The preference would Tbe sixpence on the former and a shilling on the latter. There would be an additional tax on bottled Wing of Is and 2s 6d per gallon and a preference of 6rl and 9d.

The newspapers regard Imperial preference as the most significant feature of the budget. Tariff reformers arc jubilant at the recognition of the principle. Free traders declare it a mere sham; they say preference is impossible without a tax on food.

The unexpected drop in the excess profits tax causes Satisfaction and the increased death duties are approved in all quarters in view of the necessities of the situation. In the lobby financial opinion is plainly favorable and regards the Budget as sound, hampering industry as little as possible. The balance-sheet is better than anyone dared to hope. The Budget shows a total deficit of "New and increased taxation for the current year will yield £41,450,000, after allowing for a Ip*s of £2,300,000 on the preference proposals, leaving a net deficit of £233.810,000 to be raised by borrowing. The preference proposals for the full year involve a loss of £3,100,000.—Au5.-N.Z. Cable Assn. Received May 2, 6.5 p.m. London, May 1. Mr. Donald McLean, muming the Budget debate, said that the great spending departments, which tad been spreading devastation throughout the country, must be curbed. The late Mr. Joseph Chamberlain had said that complete Imperial preference would invariably entail taxea on food. Mr. Austen Chamberlain interposed: The Government does not intend to impose new food taxes. Mr. McLean continued, stating that a great trade with the' Dominions could be developed without granting preference in connection with corn, meat, and wool. He regretted he must fight the proposal. Mr. .Amery defended the Government's proposals and said this way was not directed to the issue between free trade and protection. It was a question whether we regarded the Empire as a unit and whether we were willing to promote intercourse, understanding, and development, thus strengthening the Dominions. It was a worthy policy to carry out, irrespective of the old party divisions. Wo were entering a new period in the Empire's history, and ought to deal with the industrial, social, and economic problems ini a new spirit, aiming at wider unity.—Aus. N.Z_ Cable I Assoc.

Brewers and distillers are organising opposition to the budget beer and spirit duties.

The Labor Party intends to move amendments to the .budget, demanding a levy on capital, the continuance of the excess profits tax, withdrawal of Imperial preference, and the raising of the in-come-tax exemption limit to £250. .Aus. and N.Z. Cable Assoc.