COUNTING THE COST

Dominion, Volume 13, Issue 44, 15 November 1919, Page 3

COUNTING THE COST

BRITISH TRADE UNTON CONGRESS ••• ■ DEMANDS. This British Commonwealth Union has, made'.an estimate of the cost of putting into force threo of the proposals Carried at the Trades Union Congress ■at {Jlasgow. These threo items alone wild involve tho country- in an additional burden of taxation to the amount 0f'.£650.000,000. The three proposals referred to are:— A universal 44-hourweek and tho prohibition of systematic overtime; An income tax with minimum income limit 0f..£250 a year; and Tho 'raising of the old-age pension to il per week for all persona of sixty years- of ago and upwards. The British Commonwealth Union estimates that, the 44-hour week wojild represent an average reduction in hours of about 10 per cent., and presumably an equivalent reduction in output. On a national income roughly equal to ,£4,200,000,000, the 'reduction in output would amount to ,£420,000,000 a j^-ar. An analysis of- tho income tax assessments for 1918-19 shows that the raising of the tax limit to with the consequential effects on higher incomes, would cost at least ,£20.000.000 a year,. On Ihe suggestion that old-age pensions should be .£1 a week at sixty, it is pointed out that there are about 4.500,000 persons of sixty years of ago and .upwards. If all theso persons had old-age pensions of £\ per week the aggregate cost would be .£234,000,000 an amount about .£210.000,000 a year in excess of the present cost. Summarising the ■ above figures,- the total cost of the projects contemplated -in- the resolutions would impose on tho productive enterprises of the country an aggregate, burden of .£650,000,000. Tho immediate net burden due to tho war. apart from taxation for ordinary ■current expenditure, is ,£450,000.000, so that the three proposals of the Qongress would involve on additional burden twothirds greater - thnn that involved in tho payment of debt interest and redemption and pensions. The Uritish Commonwealth Union believes that the authors of tho Glasgow resolutions and those who voted for them .did not .realise the financial significance of -the : resolutions. JThe fact however, that they were passed unanimously is, they say, a good commentary on the loose economic thinking which characterised the proceedings of the Congress in almost every subject with which' it dealt;