AUSTRALIAN CRISIS.

Waikato Times, Volume 109, Issue 18359, 19 June 1931, Page 7

AUSTRALIAN CRISIS.

THE FINANCE PLAN

STRONG OPPOSITION LIKELY.

MR SCULLIN'S REVIEW

United Press Assn. —Elec. Tel. Copyright. SYDNEY, June 18. It is not bv any means certain tint the plan evolved by the Premiers’ Conference for Hie financial rehabilitation of Australia will be adopted. Recent events disclose growing opposition on the part of Labour organisations in the eastern States, to the plan, in spite of an earnest appeal by the Prime Minister, Mr J. H. Scullin, to let it go through, in which, he shows the danger of default and a complete stoppage of credit. It is asserted privately that a majority of the delegates to a special meeting of the executive of the Federal Labour Parly, which is now sitting at Canberra, arc distinctly hoctile to any reductions in salaries or pensions, and that they intend to urge a double dissolution on the fiduciary currency issue. On the other hand, an unofficial statement was made in Canberra today that the Federal Government will in no circumstances deviate from its intention to give full effect to the plan of the Melbourne conference. A complete endorsement of the plan has already been given by the Governments of New couth Wales, Queensland, South Australia and Tasmania. The Country’s Indebtedness. In Hie House of Representatives at Canberra to-day the Prime Minister moved the second reading ol' the bill to approve of the Premiers’ financial agreement, which covers the dent conversion plan. Ho reviewed Ihe whole history of Australian indebtedness. Australia had had no credit in London since September last, and whatever new expenditure had arisen had been caused by world conditions. For example, the adverse exchange was costing £10,000,000 a year. The unemployed in Australia now numbered 360,000, the cost of whose sustenance and relief was £9,000,000 a year, while if no action was taken to "cope with the drift this cost would be swollen to £13,000,000 a year. The debate has not concluded. SALARIES AND PENSIONS. United Press Assn. —Elec. Tel. Copyright. CANBERRA, June 18. Mr E. G. Theodore, announced tint legislation would be introduced immediately increasing the sales tax from 24 to-5 per cent., and the primigc duty from 4 to 10 per cent., and liso increasing the income tax. It was thus hoped to reduce the ieficit from £20,000,000 to £4,500,000. Cuts of 20 per cent, would also he made without delay in the salaries if public servants and ex-soldiers’ pensions, but due consideration would :io given io indigent cases. Pensions would in future be denied to widows of soldiers who had remarried, and also to the children of such remarriages.

Aiding the Revenue. The Postmaster-General, Mr A. E. Green, lias abolished the concession rale to newspaper proprietors for the despatcli of news by telephone on longdistance lines to country newspapers. The Minister has also prohibited tiie use of dictaphones in conjunction with telephones for newspaper offices, which of recent years have made serious inroads into Hie telegraphic revenue. The Senate has passed the bill authorising the shipment of £5,000,000 worth of gold lo London.