The Evening Star FRIDAY, SEPTEMBER 11, 1936. PROSPEROUS AUSTRALIA.

Evening Star, Issue 22441, 11 September 1936, Page 8

The Evening Star FRIDAY, SEPTEMBER 11, 1936. PROSPEROUS AUSTRALIA.

Australia is in a happy position today. It has made a rapid recovery from the effects of the depression. This fact is convincingly revealed in the Federal Budget, which was delivered in the House of Representatives at Canberra yesterday. The Commonwealth’s Financial Statement is a model of sound finance. As had been expected, taxation remissions are announced, but it is surprising to note such extensive reductions. The concessions under this head amount to £5,275,000. In addition, there is to be an increase in old age and invalid pensions and the hororarium of Ministers and members of the House is to be restored to something near to normal rates. The effect of lightening the taxation burden will be a great stimulation to the country’s industries, which are of great variety and are conducted with marked efficiency. Unemployment figures issued by the Commonwealth Statistician recently gave a clear indication of the advancement in business activity. They revealed that the percentage of unemployed trade unionists in the June quarter of this year was 12.8. This is the lowest since 1929 and almost back to the percentage of 9.3, which was the figure before the depression reached the country. It may be pointed out that the percentage of unemployed in the June quarter of 1933 was 25.7. Further evidence of better conditions in Australia was supplied by the Victorian Budget, which was presented last month. It made provision for substantial reductions in taxation and complete restoration in the matter of the salary cuts of the public servants. A significant feature was a considerable reduction in the unemployment relief tax. In his statement yesterday the Federal Treasurer said that out of the surplus'of £3,567,000 an allocation amounting to £2,000,000 would be applied to the purposes of defence, a matter which the people of the Commonwealth, in contrast to their attitude a few years ago, are now taking seriously, and not

without reason. There is a world urge for empty or sparsely settled areas, and defence precautions are regarded by most Governments to-day as of vital importance. The balance of the Commonwealth’s surplus is to be applied to reducing the accumulated deficit and to making special grants to the States. The relations between the Commonwealth and the States, particularly in financial matters, frequently occasion acrimonious discussion. The position bristles with grievances and difficulties. To the ordinary citizen the cost of Federation amounts to £9 a head, and ho remembers assertions when the great amalgamation was achieved that it would cost the individual about five shillings a head—“ the mere price of a dog license.” Since that time, however, the country has had to bear the cost of the Great War, and social services have multiplied enormously. Still, the States think they should get more financial help from the Federal Government. Against this, the Prime Minister pointed out that the States received more in the eight years from 1927 to 1935 under the present system of grants than the total contributions for sixteen years made on the per capita .basis. The economic strength and the financial needs of the various States differ very much. As a result an adjustment that is satisfactory to all of them is impossible of accomplishment. A special grievance in Western Australia is that by reason of the tariff policy favouring the eastern manufacturing States she is heavily disadvantaged and has a claim to larger monetary grants than she now receives. All the States are busy sticking up for their “ rights,” and the problem for the Federal Government is not one easy of solution. This lack of unity, however, has provided *an opportunity for Mr Lyons to mark time, for if he had adopted a more generous policy to one State he would have incurred the wrath, of the others!