Taxation Will Be Issue

Chronicle (Levin), 5 September 1946, Page 5

Taxation Will Be Issue

(Snecial Australian Corresi30ndentO

LABOUR'S POLICY OBSCURE

Received Wednesday, "7 p.m. -SYDNEY, Sept. 4. It ifj now plain that the Federal elections will be fought primafily 011 the issue of a reduction of taxation With little over three weeks to go before tlie country goes -to the polls on September 28, it is also patcnt that tlu Labour Governmeilt i.s still 011 the defensive and that no notable effort has been made to counter the detailed promises made by Opposition leaders. The strongest and most infiuentiai statement by klr. Menzies and Mr Fadden, is that the Commaiiwealth niust risk taxation cuts in order to re store incentive and so increase production. Both argue that only by inereas ing output can the country escape ;■ contiiiuing rise in prices and the men ace of inflation. The Opposition eampaign has been eapablv handled even to the timing 0, the leaders' speeches which sand wichei Mr. Ohifiey 's survey of the Labou. adininistration between two well bal anced statements eiubodying a con structive future policv. Both Opposi tion leaders chose to deliver polic} speeches at actual political meetings

I his contrasted vividlv with Mi Ohifiey's cliosen method of reading ai address into the inicrophone of a re cording inachine and tlie eontrast ha: not been lost 011 the inan in the street. Opeinng his eampaign, the Liberai leader, klr. Men/.ies. pi'oiuised a taxa tion cut of £25,(J0t),(J00 operating from January I, 1947, but said that he woilltl leave it to the Country Partv leader. Mr. Fadden, to show the practicabilit\ of substantial coucessions. Mr. Fadden, who is an accountant b\ profession and who, in the event of a Coalition Governinent, would probabh occupy the position of Treasurer, pro duced schedules to show that reduction.could total £o5,000,000. In reaclnng this ligure he workecl not 011 his own calculations but on Mr. Ghifley 's estiniated expenditure of £479,000,000 foi the year ended Juiie 30, 1947. Tht reductions, as outlined, range froni 100 per cent. 011 an incoiue of £150 yearh to 20 per cent. 011 an incoine of £2000 The Opposition contends that the recent cut by the Labour Government oi £17, 500, ()()() was.absorbed in the genera! rise of revenue due to vvorkers returning' to industry from the services. The existcnce of this rise is shown by Treasury iigures just released indicating that Customs and excise receijit: for the first two inonths of this finau cial year were £4,750,000 above re- . cei])ts for the corresponding period last year. The Liberai aird Country Parfy ]i!at f'orins show minor differences 'which should not,' however, prejudice a -harnionious working of the jiarties. I11 eontrast, Mr. Ohifiey's address revealed inconelusiveness and an ab 'seuce of promises that had proved dis ap[)oinling to many electors. He'based 'his appeal on the claim that Labour administ ei'ed ' soundly during the war 'aml will continue to do so, but has not yel made any positive pnqtosals to deaJ with proltlenis wliieli have arisen since. The promises of tlie Opposition liavtbeen sligniatised bv klr. Chifley in "unbridlcMl eler-lion briberv 011 a scah ihat eannot possiblv be paid." Witji all jiolicy sjieeehes now madi and , the eampaign nearing its climax, the electors are left with a clear ide. of what to expect from a Coalition Government but luive, little knowledge of Labour intentions. Neverlheless Labour is strongly eiitrenched, partieu larly in New iSouth Wales and (^ueens land. In order lo defeat Labour and have euough margin to appoint a Speaker, the Jjiberal and Country Parties will have to takc 13 Labou'i seats. As'this implies a-change in allegianee of 250,000 voters out" of a total of 4,500,000, neither side can alford to be conlident of the outcome.