FEDERAL BUDGET ATTACKED.

Timaru Herald, Volume CXXV, Issue 18622, 18 July 1930, Page 9

FEDERAL BUDGET ATTACKED.

Crushing Burdens Resented DEFENSIVE MEASURES PROPOSED. United Press Association—By Electric Telegraph—Copyr) ght (Received July 17, 8.10 p.m.) MELBOURNE, July 17. Out of the chorus of protest against the crushing provisions of the Federal Budget, a movement is crystalising for the formation ot a strong Economic Council to help and advise the Ministry. This Council will consist of representatives of the primary producers, financiers, manufacturers and retrailers from all States, and will furnish helpful suggestions in the present Cr jc*«

TARIFF SHOCKS. AUSTRALIA'S LATEST IMPOSTS. Australians have become used to tariff shocks. Perhaps that is why the latest failed to arouse any great public interest. Not that it was expected. Far from it. Business people had come to hope that the tariff had settled down; that it would remain stable for a little time at least. But they were doomed to disappointment, for the whole thing went into the melting-pot, and its full effect has not yet been ascertained by those who are directly concerned. The latest schedule issued is a vast document covering 422 Customs and 17 excise items. There are many departures from existing practice. For the first time parts have been taken from an article and singled out for special duty. This applies particularly in the case of motor chassis. Someone has remarked that if much more duty is placed on motor-car parts that manufacturers ■wall be sending out the nameplates only; the rest of the car will be made in Australia in order to avoid the extremely high duties. This ■would fulfil the policy of the Labour Government.

Generally speaking, the new schedule is a consolidation. The timber industry will benefit most. Timber merchants who for a long time have been asking for higher tariffs on imported timbers, are more than pleased with the assistance that has been given them. But they are not the only ones who are pleased. Manufacturers on all sides are delighted, for they say that they will be able to employ more hands and greatly increase their plant. Metal workers, for instance, say that the new tariff will create 2000 extra jobs within twelve months. Many of the articles that have been imported have now a prohibitive duty to contend with, and it is held that the importations will practically cease. Motor body builders and the makers of car parts say that they will be able to employ hundreds of additional hands, and that the increased trade in New Squth Wales alone will be nearly a quarter of a million pounds.

Another effect of the new tariff will be to increase enormously the demand for Australian-made woollen goods. A duty that will make the retail price almost prohibitive to the average man or woman has been placed on woollen dress materials made abroad, so this should give a great fillup to the woollen mills in Victoria and New South Wales. Rates on woollen piece goods have been altered from 1/3 to 2/- British and 2/6 to 3/- general rate. The weight per square yard has been altered to bring a greater range of cloth within the tariff. The latter change is of great importance to the local woollen industry, which in the past has not manufactured the lighter weights. It has been emphasised that the new tariff was not brought down with the object of producing more revenue. Customs revenue has already fallen away by millions as a result of the last schedule, and with the Federal Government searching for funds to make up the deficiency amazement is expressed because the Government did not see fit to increase the excise on luxuries such as beer, spirits, and tobacco. Even a small impost on these articles would have produced a substantial revenue without imposing any hardship on anybody. The only alternative seems to be a substantial increase in the income tax, and that will be a hardship to everybody, especially trading companies who are already faced with difficulties; already over-taxed. But playing cards did not escape. For the first time in Australia they have been called upon to bear an impost of 2/- a dozen packs. Another innovation has been the imposition of a duty on outside packages of imported goods. These in the past, have been admitted duty free, and now they must pay 20 per cent. British and 30 per cent, general. This has been done to overcome the practice of exporters to Australia of inflating the value of outside packages. The new schedule was such a surprise that there were no heavy withdrawals from bond before the new rates were announced.

A cable message from Canberra, published yesterday reported that the Opposition have made the first definite move against the Budget proposals. Mr Latham, the Leader of the Opposition, has announced that he intends to move for reconsideration of the estimates for the purposes of reducing expenditure by about £4,000,000. His proposals include a reduction of the salaries of Ministers and members.