AUSTRALIA’S BIG PROBLEMS.

Timaru Herald, Volume CXXV, Issue 18718, 6 November 1930, Page 9

AUSTRALIA’S BIG PROBLEMS.

Decline In Credit Supplies. ADVANCES SEVERELY REDUCED. United Prese Association— By KectrlC Telegraph—Copyright (Received November 5, 9.0 p.m.) SYDNEY. November 5. Deposits in twenty-one Tradlnf Banks in Australia declined by £5,735,542 during the three months September 30. Advances made by the banks in the same period were re cuceti to £8,097,559. The total assets of these banks at September 30 were £396,378,728 The total liabilities within Australia were £330,686,791. FACING THE INEVITABLE. BUDGET MUST BE BALANCED. United Press Association— By Klee trie Telegraph —Copyright ADELAIDE, November 5. The loan estimates for 1930-31 passed the Assembly. The Premier (Mr L. L. Hill) said there were two alternatives open to the Government: One to balance the budget, the other to repudiate a policy which he would never support. Mr Hill praised the work of the Loan Council, which, he said, was more than ever necessary at this critical period. BALANCING THE FEDERAL BUDGET. TREASURER ANNOUNCES HEAVIER TAXATION. United Press Association— By Klectzle Telegraph—Copyright (Received November 5, 11.15 p.m.) CANBERRA, November 5. In the course of a long statement in the House of Representatives to-day, Mr Lyons, Acting Federal Treasurer), disclosed a serious drift in the Commonwealth finances since the Budget was delivered last July. He also outlined the Government’s proposals for curtailment of expenditure and increasing revenue. He anticipated that, with the restoration of confidence and revival of trade, the deficit would be between eight and ten millions. He pointed out that with only eight I months to go it would not be possible to balance the ledger during the present financial year. The most that could be achieved, without undue sacrifice, was to plan the Budget on such • a basis that when it operated for a full year the ledger would be balanced. The Government, he said, intended to impose new revenue duties estimated to yield £3,100,000 annually, but the sum realisable for the remainder of this year would be only two millions. New income tax proposals would apply principally to income from property, such as interest, dividends, and rents. There would be a super tax of 7i per cent, upon all incomes, including those of companies, from property, which was expected to yield a million and a half. There would also be an increase of 5 per cent, in the rate of tax on incomes from personal exertion above £SOO, which would produce £160,000 additional revenue. Federal Ministers’ salaries would be subjected to special taxation at the rate of fifteen per cent., and salaries of members of Parliament at the rate of ten per cent. Government employees whose salaries exceed £725, will pay a special tax of 10 per cent; those above £IOOO, 12i per cent., and those which exceed £ISOO will pay 15 per cent. It is anticipated that this tax will produce £60.000 in a full year, but only £40,000 for the remainder of the current financial year. Mr Lyons said that the total taxation amounted to £4,820,000 in a full year, but the sum expected for the remainder of this year amounted to £3,700,000. The Government hoped to make further savings and economies amounting to £1,230,000. It also intended to reduce its contribution to sinking funds by £1,950,000. These two items represented a total of expenditure reductions of £3.180,000 over a full year. Thus expenditure reductions and new taxation combined, revealed a total benefit to the Budget of £8,000,000 for a full year. Mr Lyons said the annual overseas liabilities of the Australian Government consist mainly of interest and sinking fund, and amount to about £34,000,000, while the net short term indebtedness of Australia at October 31st was £7,134,000.

Declaring that the financial depression and trade dullness had been accentuated since the financial proposals for balancing the Budget were determined four months ago, Mr Lyons said there had been a serious shortage of postal receipts, and claims for pensions, invalid, old age, and war pensions, had greatly increased; while the estimates ior exchange on remittances to London also would be inadequate by nearly half a million. Wool was now averaging only about 9d per pound, compared with 1/3 last year, and 1/7 in the year before. Wheat f.o.b. Australia was less than 3/- per bushel, compared with 5/- last year.