AUSTRALIA'S DOLLAR CUT

Chronicle (Levin), 4 September 1947, Page 5

AUSTRALIA'S DOLLAR CUT

( N.Z.PA, ■

— Reuter j

Steps To Re Taken To Aid Britain

, CopyHght)

CANBERRA, Sept. 3. A continuation of the almost Gomplete ban on itextiles and a reduction of dollar expenditure on motor chassis, tobacco, petrol, newsprint, aircfaft, capital investment and raw materials, fiim royalties, travel expenditure and iremittances were announced last night by the Commonwealth .Government. The programme represents the first step by the Government to conserve dollars to assist Britain in her present financial crisis. The effect of the cuts, which were anhounced by the Prime Minister (Mr. Chifley) after a meeting of the Federal Cabinet last night, will he to lessen Alistralia's demand on thev Empire dollar pool. The Commonwealth Government this year has to save 85,000,000 dollars to bridge the gap between its dollar earnings ftnd expenditure. 51otor chassis for passenger use will be cut by 20 per eent., but there will be no further petrol eut for the time being. The further purchase of aircraft from dollar areas has been prohibited. This will not affect the Commonwealth Government 's own airlines and TransAustralia Airlines, which placed orders for new machines before the dollarsaving seheme was put un'der way. Import lieenees for American tobacco leaf will be cut by 20 per cent. It is hoped that the reduction in the release of manuf actured tobacco and cigarettes will be limited to about 10 per cent. Newsprint imports will be cut by 3U per eent. Except for a few lines, whieh aTe stffl in acute short supply, the lssue of lieenees for the import of textiles from dollar sources will be temporariiy suspended. Maehinery and other items of capital equipment will be regarded as of the highest priority and dollars will be made available to meet the essential iequirements of Australian industry. Dollar expenditures in the remittance of film royalties will be reduced by about 30 per cent. _ . - j Drastic restrictions will be lmposed on the amount of dollars to be available for personal travel, and the allowances for businessmen will be substantially redueed. . . The exchange control authorities will limit severely the amount of remittances involving dollar expenditure to be made by visiting entertainers, artists, etc. Up to the present time visitors have been allowed to their net earnings in Australia without restriction. « ■ ' ... y~i "* "1 4- n 1 ti 1 m m

The lmineuiate sweeping tui,» ^ — ports from North America are aimed at redueing Australia 's expenditure by about 40,000,000 dollars a year. Ihis approximates about half of the difterence between the export and import figures estimated for this financial year. The Government does not expeet unemployment to rcsult from the import cuts, although it reeognises that some people may be forced to transter to other industries. Though the cuts do uot close the gap between current expenditure and tne dollar earnings 011 imports, Australia will not have to call on Bntam tor as many dollars as in last financial year, when 100,000,000 dollars passed to Australia to meet commitments in Nortn America. _