MR LANG'S LEGACY

Press, Volume LXIII, Issue 19157, 14 November 1927, Page 10

MR LANG'S LEGACY

HIGHER TAXATION.

HEAVY BlLlfl TO PAY. (from oxra, owv cobrdspovejkt.) SYDNEY, Ndvember 3. It is a. very good thing for the Premier (Mr Bavin) that he did not, in one of those weak moments which overcome most politicians, commit himself and his Party to a reduction of taxation during the recent elections campaign, for on assuming office he has found himself very much like old Mother Hubbard. He has found the Treasury cupboard bare —barer, indeed, than he had anticipated. If taxation is not increased' by the new Government, the incidence of it is almost certain to be reviewed in some form or other.

In the next three years, for example, loans falling due total from £12,000,000 to £15,000,000, at much higher rates than formerly. It will take £30,000,000 or £40,000,000 in the next few years to carry out such works as the Harbour Bridge, the <ftty Railway, and the electrification of railways.

And, in face of a disquieting financial problem generally, the. Railway Commissioners are crying out for increased freights and fares. This demand, which was made on the late Government as far back as June, but which was pigeon-holed, was one of the first of Mr Bavin's shocks on becoming Premier and Treasurer. This financial year the Railway Commissioners have to meet additional charges totalling roughly £1,728,000. The public, of course, will have to foot the bill. They would have had to pay more for train and tram fares before this, but were mercifully saved by the humane Railways Act, which prevents the Commissioners from increasing fares without executive authority, and the late Government obviously did not want to give them that authority just before an election. The public will also have to pay for the loss this year of £1,240,448 on 52 non-paying railway, lines, a loss which, the Commissioners think, should, in part at least, be borne by consolidated revenue and not be an incubus round their necks.

Altogether, Mr Bavin's lot, like that of the policeman, is not going to be an entirely happy one since he has to find money and cannot produce it by the magic touch of the philosophers stone.