HAS LAUNCHED AN ATTACK UPON HINDENBURG LINE

Star (Christchurch), Issue 18451, 30 April 1928, Page 5

HAS LAUNCHED AN ATTACK UPON HINDENBURG LINE

CHURCHILL REPLIES TO BUDGET CRITICISM. CT'nited Press Assn.—F»y Klrctric Telegraph.—Copyright.) (Received April 30. 12 noon.' RUGBY. April 29 Mr Winston Churchill. Chancellor of the Exchequer, replied in a speech at Newcastle to criticisms of the proposals contained in his Budget speech for relieving the depressed basic industries from the burden of local taxation. He declared: “We have launched our advance against what I call the Hindenburg Line —a threefold line, against the triple entrenchments of unemployment. trade depression and local taxation muddle." Agriculture, coal, cotton, iron and ■teel, engineering and shipbuilding were vital means by which the wages of the vast majority of wage earners and breadwinners were provided. Those industries were in difficulties at the present time. He did not propose to rive favour to any particular industry, but if any industry showed that its natural activities were being curtailed the removal of its burden of taxation was not a favour, but a long-delayed and necessary act of justice. Local taxation of depressed manufacturing industries, which he had mentioned, would be reduced an October, 1929, on an average by three-quarters, and that of agricultural producers would be abolished entirely*. The products of heavy industries could only be carried by railways and the railways would be relieved from local taxation so that they 7 could help the heavy industries by lower charges. Mr Churchill recognised the sacrifice which the owners of motor vehicles would be called upon to make in pay - ing the tax on imported petrol, which would contribute to local taxation relief. He mentioned that the tax on perol had also another object. This was to encourage the scientific extraction of oil from coal in this country. If that were done, he said, it would renew the vast economic advantages which this country had derived in the nineteenth century from the position of its marvellous coalfields.—British Official Wireless.