DIVIDENDS WITHHELD

Waikato Times, Volume 130, Issue 21664, 26 February 1942, Page 6

DIVIDENDS WITHHELD

AUSTRALIAN ECONOMIC PLAN

j , I'ulted Pres« A sail. — — fc re/. copvright j SYDNEY, Feb. 25 i An immediate effect of the Federal Government’s new economic regulai tions as they relate to the limitation ! of company profits has been the decision of several companies to defer payments of interim dividends pending clarification of the government plan. j It is expected that the people who depend largely for their income upon I dividends from shares, and who have I liabilities to meet, such as income i tax, may experience temporary finanj cial embarrassment in the event of dividends being withheld on an extensive scale. House and property agents also claim that their livelihood has gone with the Government’s embargo on the sale of land and houses.

The Prime Minister. Mr J. Curtin, announced in the House of Representatives his willingness to accede to the appointment of an all-party committee to examine the controversial ; features of the new economic regulaj tions. He had received complaints from sections of the community about the harshnes of some provisions. The Leader of the Opposition, Mr A. W. Fadden, welcomed the idea and said that while the Opposition agreed with the principle of the plan, it objected to the clauses which prohibited dealings in property or company shares. Such a course was bound to damage the war effort. Mr Fadden warned the Government that if the committee’s recommendations were not implemented by the Government, the Opposition reserved the right to take whatever action it thought fit. Senator MacLeay. in the Senate, made a similar statement on behalf of the Opposition, which is in the majority in that Chamber. He declared the Government’s proposals went too far and were likely to lead to economic chaos.