N.S.W. TREASURER DESCRIBES ECONOMIC POSITION AS GRAVE.

Star (Christchurch), Issue 18941, 11 December 1929, Page 1

N.S.W. TREASURER DESCRIBES ECONOMIC POSITION AS GRAVE.

BUDGET DISCLOSES SURPLUS; TAXATION MAY BE REDUCED. (United Press Assn.—By Electric Telegraph—Copyright.) (Received December 11. 10.30 a.m.) SYDNEY, December 10. In the Legislative Assembly, the State Treasurer, Mr B. S. B. Stevens, delivered the Budget speech. He said that the financial operations for the year ended June 30 last resulted in a surplus of £593,169, the revenue being £20,703,940 and expenditure £20,110,771. Mr Stevens estimated that the reveioi S ear wou ld be diminished by £420,137. There was the utmost difficulty an arriving at estimates of the revenue owing to the uncertainty of the financial and trade outlook. He estimated the current year’s expenditure at £20,262,417, which was slightly greater than last year. Mr Stevens announced that they expected to finish the financial year with a surplus of £21,386. He intimated that it was also proposed to impose a tax on amusements. Referring to the growth of competition of motor traffic against the railways, Mr Stevens said that the time had arrived when the Railway Department would have to go after business rather than w'ait for it to come to the railways. The railways’ earnings last year were £19,000,000, its working expenses approximately £15.000.000, and the interest bill over £6,000.000. Capital invested in New South Wales Railways totalled £124,000,000, and aggregated almost half the Public Debt.

Commenting on the economic position, which he described as grave, the diminishing purchasing power of* the community and the growth of unemployment, which was accentuated by the coal deadlock, Mr Stevens pointed out that, whereas the average amount received annually by Australia during the past five years from the sale of her primary products abroad was approximately £141,000,000, the amount which these would realise in the year 1928-29 would be only £112,000,000. T n other words, there would be £29,000,000 less coming to Australia for the sale of her products. lie announced that the Government was compelled to reduce loan expendi-

ture from £14,500,000 to £10,000,000 for this year, owing to the adverse market conditions for overseas loans. The Government proposed to try to stimulate production and reduce the burdens on industry. It would redtice income taxation this year by £1,000,000; the supertax of 3d in the pound on companies would not be levied this year, while the maximum rate of 3s would be reduced by 3d to 2s 9d. There would also be a general reduction of 5 per cent in the rates on incomes from individual personal exertion and property. The existing method of child endowment taxation would be substantiated by taxation of 1 per cent on the wages of employees under State awards, as from January 1. This method would lift a burden from industry of approximately £1,000,000 annually. The Gov ernment also intends to obtain additional revenue from increased liquor and tobacco licenses and bettinar.