FEDERAL BUDGET PROPOSALS

Timaru Herald, Volume CXXXVIII, Issue 19860, 25 July 1934, Page 9

FEDERAL BUDGET PROPOSALS

COUNTRY’S STABILITY REVEALED

SUBSTANTIAL CONCESSIO TO TAXPAYERS

United Press Association— By Electric Telegraph—Copyright (Received July 24, 9,50 p.m) CANBERRA, July 24. Delivering the Budget speech to-day, Mr J. A. Lyons, Prime Minister and Treasurer of the Commonwealth, estimated the revenue for the coming year at £72,193,000, including £34,600,000 from customs and excise, £8,000,000 from the sales tax, £8,500,000 from income tax, and £13,500,000 from the postal services. Budget Explained. The estimated expenditure, said the Prime Minister, is £72,179,190, including £19,000,000 on war repatriation services, £4,187,000 on defence, £12,000,000 on invalid and old age pensions, £12,323,000 on the Postal Department, and £13,524,000 on payments to the States. The Government is providing £3,767,000 for the relief of unemployment, is giving further relief from the sales tax to the extent of £220,000, and is also reducing the primage duty by £400,000. Radio listeners’ licenses are being reduced from 24/- to 21/-. Partial Restoration of “Cuts.” Mr Lyons said that additional concessions are being made to soldiers’ dependents and old age pensioners, while the maternity allowances will be made more liberal. The Public Service salaries and naval, military and air servicemen’s “cuts” are being restored to the extent of £270,000 a year. The direct assistance which has been provided primary producers for the past three years amounted to £9,000,000, including £5,000,000 to the wheat growers. Mr Lyons said that the Government’s future policy in regard to the wheat industry would be announced before Parliament dissolved. It is proposed to aid the apple and pear growers to the extent of £125,000, also to renew the guarantee to exporters of oranges to parts other than New Zealand, or the reimbursement of their out of pocket marketing expenses. Mr Lyons pointed out that legislation had already been passed which was designed to stabilise the dairying industry. Defence Vote. The Defence expenditure in the coming year, Mr Lyons explained, entails a gross increase of £1,900,000, a portion of which will go towards the cost of a cruiser of the Leander type, and the remainder for the co-ordinated development of the three defence Services. Special grants to the smaller States are; South Australia, £1,400,000; Western Australia, £800,000; Tasmania, £400,000. The Government is reducing the telephone call charges, making the standard fee 13d. Splendid Recovery. Reviewing the past three years, the Prime Minister (Mr J. A. Lyons) said that the increase in the aggregate public debt was £34,800,000, while the most eloquent testimony of the improvement in the Government’s credit was the remarkable appreciation of prices of Australian stocks since the national debt conversion, the average yield from four per cent, stocks being £3/4/6, compared with £6/6/9 in September, 1931. Mr Lyons dwelt a lengthily on the wonderful internal recovery, the marked fall In unemployment, the substantial increase in oversea trade, the satisfactory trade balance and the progressive reduction in interest rates. Mr Lyons emphasised that the national income had risen from £438,000,000 in 1931-32 to about £497,000,000 in the year just closed. RIFT IN COUNTR V PARTY. NEW ORGANISATION FORMING IN VICTORIA. United press Association —By Electric Telegraph—Copyright (Received July 24, 11.45 p.m.) SYDNEY, July 24. Concerning the Country Party dispute in Victoria, it was announced here to-day that, as there was no hope of healing the breach between the Victorian Country Party and the Central Council of the Australian Country Party, an entirely new organisation will be formed in Victoria, consisting of those prepared to abide by the principles of the Australian Country Party. A crisis was caused in the Country Party by the insistence of the Central Council of the Victorian Country Party that it had no moral and legal right to endorse the candidature of persons who were not prepared to sign the new nomination form. The Hon. T. Paterson and other retiring Federal Parliamentary members in Victoria declared that they would not sign the form and would contest the election as Australian Country Party candidates without the Victorian endorsement. Mr Paterson stated that his refusal to sign the form was due to his reluctance to surrender his rig’-'- tc exercise his individual judgment on matters outside the party platform. Another condition, to which exception was taken, sought to apply to the Federal Ministry the conditions attached to the formation of a composite Ministry in Victoria, namely, the consent of two-thirds of members of

the Victorian Central Council. It was impossible for one single State party to secure, or to prevent the formation of a Federal Ministry. Dr. Earle Page, leader of the Country Party in New South Wales, expressed regret that the Victorian Central Council had not been able to reach an agreement with the Victorian Federal members. The dispute should not be allowed to affect men who had inspired and who had fought for Country Party ideals since the party had been formed, he added.

SUCCESSOR OF MR LATHAM. VICTORIA’S DEPUTY-PREMIER AS CANDIDATE. United Press Association—By Electric Telegraph—Copyright (Received July 24, 11.45 p.m.) MELBOURNE, July 24. The Deputy-Premier of. Victoria (Mr R. J. .Menzies), has agreed to contest the Kooyong seat, which was formerly held by Mr J. G. Latham, and will take a conspicuous part in the Federal election campaign.