IMPERIAL POLITICS

Timaru Herald, Volume XIIC, Issue 13892, 1 May 1909, Page 6

IMPERIAL POLITICS

PREVENTION OF SWEATING. Press Asjociafckm-By Telegraph-Copyright LONDON, April 29. In the House -of Commons., the Trade Boards Bill, providing against sweating, was read a second time unopposed, but Mr Lyttelton considers that too much latitude is allowed the Board of Trade. Mr Balfour, in a sympathetic speech, ■aid that it was impossible to refuse to consider- foreign competition. Mr Hobhouse informed Mr Hazleton that the cost of old age pensions in Ireland was £2,330,000 annually.

THE BUDGET STATEMENT. • PROPOSED NEW TAXATION. LONDON, April *29. Mr Lloyd George, Chancellor of the Exchequer, has. issued a White Paper, embodying the facts, usually. contained in the first part of the Budget. It show* that the revenue for 1908-1909 amooiited to £150,578,000. He estimated the revenue for 1909-1910 at '£148,390,000,- and 'the' expenditure at .£164,152.000, leaving a Budget deficit of £762,000. The decrease in the expected revenue was due to the necessity of estimating. a reduction of £1,000,000 in Customs revenue, and £1,500,000 in excise, compared with 1908-1909. The income assessed for income tax amounted to £1,400,000,000, which, at a penny in the pound produced £21,833,000. The national debt amounted .to £754,121,309. The diminution' of foreign trade in' 1908 was £114,000,000, whereof a third to a half was accounted for by a general fall in prices below those of 1907 level. It was impossible to prophesy aa immediate and rapid recovery, but there were some indications that foreign trade was beginning to improve. The death duties amounted to £18,370,000. Mr Lloyd George, in his Budget speech, said it was proposed to reduce the sinking fund, increase the death succession duties, increase the spirit duties, heavily increase taxation on unearned incomes, and increase the tobacco duty, leaving the beer, tea and sugar duties unchanged. ' The interest with which Mr Lloyd George's Budget speech was anticipated was keener than at "any Budget since Sir W. V. Harcourfs of 1894.

THE CHANCELLOR'S ADDRESS. NEW TAXATION OUTLINED. Received 9.4 a p.m., April 30th. LONDON, April 30. There was a crowded house except In the strangers' gallery to listen to the Chancellor's address. . Mr Lloyd George spoke for four and i, half hoars. - .-He claimed that the increased expenditure was substantially incurred with the unanimous assent of nil parties in the -House. ' The growth of temperance had added considerably to the financial difficulties. They had .to find £16,600,000, which would leave a surplus. of £488,000. It was proposed to meet the deficiency by reducing the contribution to the sinking fund by £3,000,000. The income tax on earned incomes below £2OOO would remain. at'9d; below £3OOO it would be Is; above £BOOO, Is 2d. There would he a further super tax of 6d on incomes of over £SOOO. The income tax changes would-yield £3,500,000. It was expected that the super tax on the following year alone would yield £2,300,000, .based on the amount by which income exceeds £3OOO. Incomes under X'oOOi would be granted an abatement pf £lO per child for all children under the age of 16 years. The sum of £2,850,000 would be raised by a revision of the estate duties, and £650,000 by an increase of stamp duties on share transactions. Motors would be taxed from 40s to 40gns according to horsepower, doctors* cars paying half taxes and motor cycles £l. Petrol would be taxed 3d per gallon, with a rebate of id to commercial cars. The motor taxes would yield £600,000, which would be spent on the improvement of roads. The Budget proposes a State tax of -20 per cent, on the unearned increment of land, payable at death and when land is sold. There would be a further £d in the £ on the capital

value of undeveloped land and ungotten minerals; also £d in the £ on mining royalties; also a 2 per cent, reversion duty on the benefit accruing at the termination of the lease: . The land taxes would produce £50,000. An increase of 8d per pound on manufactured tobacco would yield £1,900,000, and an increase of 3s 9d per gallon on spirits £1,600,000. Revision of liquor licenses and a uniform percentage on the annual value would produce £2,600,000. Mr Lloyd George suggested that the whisky duties would justify an increase in the* retail price of id per glass. The Government were considering the question of industrial insurance, compulsory, self-contributory and Stateaided. While preserving the existing benefit to societies it was proposed next year to give pensions to workhouse septuagenarians. Mr Lloyd George concluded by stating that the greater part of the. cost of the Dreadnoughts would fall on next year. If the contingent Dreadnoughts were built the naval bill would be gigantic. Nevertheless the Government did not intend to avoid „ their obligations. Failure to do so would not be liberalism, but lunacy ; but it would be an act of the greatest unwisdom to throw away £8,000,000. They could not build a navy against nightmares. The increased yield under his new taxes would make the necessary provision for the navy next year possible,- without resort to the vicious expedient of a loan.

AN ELECTORAL MANIFESTO. LEADING PRESS COMMENT. a.m., May Ist. LONDON, April 30. Mr Chamberlain said that the Budget was so detailed that immediate criticism was impossible. It might serve the purposes of an electoral manifesto, for it would take three Parliaments to pass the legislation necessary for its full achievement. Dearer bonds and other securities transferable by delivery will be raised 10s to 20s per cent, of the nominal value, but bonds issued by colonial Governments will remain at 2s 6d per cent. Mr Redmond and other Irishmen strongly opposed the new taxation, particularly the spirit duties. The House agreed to the duties on spirits, tobacco and petrol by 281 votes to 120 votes. Lobby opinion emphasises the vast complexity of the Budget, and characterises it as several Budgets in one. The Radicals believe that Mr Lloyd George is underestimating the revenues derivable from the new taxes. The next Budget may show an unexpected surplus. The "Times" opines that the stamp dnties will operate, very disadvantageto bankers, who will be paralysed in respect to raising colonial corporation loans. Such loans are expected to be obtained by >New York bankers in future. The "Times" says that the deficit is covered at the cost of the wealthy and fairly well-to-do. The doctrine of social ransom had never before been carried quite so far. The "Daily Mail" says that the plundering of the middle classes shows that free trade finance has hopelessly broken down. The " Standard " says that Ministers have flung away vast revenues in coal, sugar and tea, and are now without the courage to recant. The Manchester "Guardian" says that Mr Lloyd George has vindicated the elasticity of free trade finance. The "Chronicle" says that it is a bold Budget, but a bad speech wearied the Commons. Mr Lloyd George was so anxious to sketch future developments of the liberal policy that it became a political manifesto.