FEDERAL BUDGET PROPOSALS.

Timaru Herald, Volume CXXV, Issue 18617, 12 July 1930, Page 17

FEDERAL BUDGET PROPOSALS.

Widespread Criticism. MR SCULLIN’S CHALLENGE. United Press Association—By Electric Telegraph—Copyright CANBERRA, July 11. It is expected that Mr Scullin’s new Budget proposals will meet with strong opposition in the Senate, especially the company tax and sales tax. Replying to criticism, the Prime Minister, said': “Show me an alternative. The stock markets in every State fell yesterday, and showed an unfavourable reaction. The capital values of some stocks sank to new low levels.” Racehorses from New Zealand, and there are a great number here now, are subject to 2b per cent, primage duty. The owners here asked whether they might be allowed to deposit the amount of duty and collect a refund when they leave the country with the horses. This request is receiving consideration.

Shipowners, who recently conferred with the idea of signing contracts which would guarantee stable freight rates from Australia, have postponed indefinitely any action in this direction in order to ascertain the effect of primage duty on cargoes and the additional company tax, which will have direct influence on ships’ stores.

FALL IN SHARES. BUDGET PROPOSALS CONDEMNED United Press Association—By Electric Telegraph—Copyright (Received July 11, 8.20 p.m.) SYDNEY, July 11. While prominent industrial securities are firmer on ’Change to-day, the selling pressure is not heavy. The market otherwise continued its downward tendency. Bank of New South Wales showed a further weakness, falling by 7s 6d to £37 7s sd; Union Bank by 2s 6d to £ll 10s.

Commonwealth loans are quiet and irregular. A crowded meeting of members of the Chamber of Commerce vigorously condemned the new taxation and the tariff proposals, and passed a resolution expressing the view that unemployment would be seriously increased. The meeting also stressed the hope that the Government would try t( i borrow sufficient money to balance the budget, instead of compelling trade and industry to wipe out the burden in a single year. The meeting urged that the Government should consult with the leading representatives of finance and commerce.

PROTEST FROM SOUTH AUSTRALIA. STATE’S AWKWARD POSITION. United Press Association—By Electric Telegraph—(Received July 11, 8.25 pjn.) ADELAIDE, July 11. The Premier (Mr Hill) has written the Prime Minister, explaining the serious effects of the Budget which will place South Australia in a very awkward position. Mr Hill estimates that the cost of federation to his State will be at least £5,000,000.