ECONOMY “CUTS”

Taranaki Daily News, 3 August 1931, Page 7

ECONOMY “CUTS”

BRITISH BUDGET DEFICIT COMMITTEE MAKES REPORT SAVINGS OF £96,578,006 BIG UNEMPLOYED FUND CUT END OF MARKETING BOARD British Wireless. Rugby, July 31. The report of the committee appointed in February by the House of Commons to make recommendations to the Chancellor of the Exchequer for effecting forthwith all practicable legitimate reductions in national expenditure consistent with the efficiency of the services, was published today. The committee was under the chairmanship of Sir George May, and the main report is signed by five members, subject to minor reservations by one of them, whilst the minority report, which displays disagreement with the majority on several aspect® of. expenditure, is signed by the remaining two members. In submitting major recommendations involving an immediate saving, the majority report' states that they reached the conclusion that the anticipated borrowing in 1932 on behalf of the unemployment fund and road fund would be regarded as a revenue liability and, on this basis, a debt deficiency of £120,000,000 would have to be made good for the 1932 Budget. Savings of £96,578,000 are- anticipated from the recommended economies, which include £66,500,000 from a reduction of 20 per cent, in unemployment insurance benefits, etc.; £13,600,000 from a reduction in teachers’ salaries and education grants; £7,865,000 from the postponement and slowing down of road schemes; £400,000 from abolishing the Empire Marketing Board; £250,000 from a limitation of the grant to the Colonial Development Fund; £2 199,000 from a reduction in the pay of the fighting services; £1,000,000 froin a reduction in research and technical developments under the defence heading. It also proposed that the Department of Overseas Trade should become increasingly selt- , supporting. ' . With regard to the gap between the anticipated deficiency of £120,000,000 and the economies of £96,000,000, the report suggests that, ifv possible, all classes of the community should suffer an all-round reduction of incomes. The majority would not hesitate to ask the sacrifice, but they could not justify singling out .public servants and pensioners for. a special sacrifice. Increased taxation might • therefore be necessary. A • it. The Prime Minister announced m tne House of Commons that a special committee of Cabinet would study the report during the recess. LABOUR RIDICULES REPORTS SHARP DIFFERENCE OF VIEWS. CONSERVATIVE TARIFF PLANS. Rec. 5.5 p.m. London Aug. 1. The economy report is received . witn ridicule and contempt in Labour circles, while all interests affected—teachers, medical men, police, aviationists and others, protest. Most of the Labour members. m the House of Commons express the opinion that the recommendations are already The Daily Telegraph’s political correspondent says there is reason to believe many members of the Cabinet are determined to resist the so-called attack against the social services. The report is certain to create acute differences in the Ministry Conservatives express the opinion that the programme, drastic as it is, will no p meet the situation without the introduction of an emergency tariff. , , The Times says no-one has hitneno more heartily agreed than Mr.' Snowden with the economy committee s principal majority contention that the Budget must be balanced at all costs. The report proposes some questionable methods, including the abolition of the Empire Marketing Board, which is part of a solemn engagement ryith the Dominions, whose consent will be neces“Parliament has shirked the reform of the spending services,” the paper adds. “There will be general agreement that all-round sacrifices are necessary to meet the national emergency, and any contraction of the social services should be deliberately designed as a preface to the lowering of the cost of the national debt. The report should force all parties to realise how much prejudice and theory must be discarded before Parliament can accept the responsibility of the performance of the Re®. 5.5 p.m. Canberra, Aug. .2. Treasury bills worth £21,720,000 issued to cover temporary Government finance matured on hriday. The Prime Minister, Mr. J. H. Scullin, announces that the Commonwealth Bank and trading banks have renewed the bills at 4 per cent, instead of 6 pel’ cent. The interest payment has thus bceu reduced by £424,000 a year.