AID TO INDUSTRY

Evening Post, Volume CXXXVIII, Issue 55, 2 September 1944, Page 9

AID TO INDUSTRY

"FULLY RECOGNISED"

MINISTER'S ASSURANCE

The need for providing assistance to industry in the post-war reconstruction and devolopment period was fully recognised by the Government, said the Minister of Supply and Munitions (Mr. Sullivan) in the second reading debate on the annual taxing Bill in the House of Representatives yesterday atfernoon. He was replying to suggestions made by the Leader of the Opposition (Mr. Holland). The Minister also stated that as soon as it was possible he would ask his colleagues in the Government to grant such relief to industry as would facilitate the more rapid development of industries, provided they were sound and sensible industries and not purely artificial ones. Mr. Sullivan referred to the setting up by the Government of the Organisation for National Development, and produced a report which he said covered various phases of the organisation and the functions of its component parts. Included in the report were references' to the question of credit to enable the development of industry. The Minister of Finance was entirely favourable and Sympathetic towards the provision of money for the establishment of industry. Mr. Nash had told him again and again 'that whatever money was wanted for the sound development of sound industry it would be provided. . Various committees had been set up under the national development organisation, continued Mr. Sullivan. The industrial development committee of five or six members consisted of representatives of the State, of manufacturers, and of labour. The committees job was to formulate plans of a concrete and specific character relating to specific industries, both in regard to the expansion of existing industries and the creation of new industries. One of the matters to which attention was being given was the question of the provision of the necessary finance, backed by the undertaking that had been given by the Minister of Finance. TAXATION RELIEF. .. The question of taxation relief for industry was a difficult one, because of the money that had to be found for financing the war. He was sure all were in favour of relief being given as soon as war circumstances and war finance would permit. ♦;BfK* W -VJ^ Polson (National, Stratford) said that the Opposition had advocated a plan of compulsory savmgs similar to that adopted in Britain but it had found no. support from the Government. As the second-best method, it was suggested that from the surplus taxation receipts, which last year, had amounted to £6,500,000, a pool of at least £5,000,000 could be coated and could be added to each year, from which something could be provided not only for easing taxation, but also to assist the country during the change-over period. Mr. Poison sal<* he thought industry would take cold comfort from ttie Bill before the House. The Minister of Finance, like Pharoah of old, still expected the manufacturer to make his bricks without straw. ~ - Discussing the Opposition suggestions WiUSln^ ? e surplus without transiZT? SiJ* *o the.War Expenses Account, Mr. Fraser declared that every tarthing was needed for. war purposes, and if the transfers were not made it would be necessary to impose additional taxation. He had heard no criticism of the Government's policy of endeavouring to pay our way as far as possible, as we went along. Mr. Poison: I suggested that as the war is apparently easing off, that money might be set aside and not nut mto the War Expenses Account. ' "BAITING A TRAP." "But the point is that the Budget shows it is needed," replied the Prime Minister, who added that no doubt the Minister of Finance would be delighted it he could store up surpluses for future use. To talk about reducing taxation in. wartime was not sense ana also to suggest increasing payments to certain sections was acting like a prodigal politician. - The Opposition were trying to bait a trap for the democracy with tainted bait. It would simply recoil upon them, because the democracy did not like nonsense