MEANING OF “NO” VOTE NOW APPEARS

Grey River Argus, 4 June 1948, Page 5

MEANING OF “NO” VOTE NOW APPEARS

Thirty Millions of Subsidies to be Cut Out SYDNEY, June 3. The Federal Cabinet is expected to decide on June 15 to cease paying £30,500,000 yearly in subsidies that are> being provided by the Federal Government in order to make possible the control of prices, services and rents in the various Australian States.

This is announced by the Canberra correspondent of the Sydney Daily Telegraph. The correspondent says that the removal of the subsidies will entail the rising of the price of goods, services and housing. While the Federal Government this year will still pay in subsidies forty million pounds, it intends for next year, instead of subsidising, to cut down the income taxes, so as to compensate for the higher prices. The Government intends as from the end of next month to cut down tha taxes on the lower incomes by thirty million pounds for the current year.

Wartime Controls All to be Reviewed

CANBERRA, June 3. All war-time controls will following the referendum be reviewed by the Australian Government. These powers include the rationing of clothing and food, but any decision on food will depend on what effect the end of- rationing will have on supplies for Britain. The review will be complete before the conference of State Premiers in August and the Government will not continue any control unless by agreement with the States.

The question of ending the price stabilisation subsidies is being examined by a special sub-committee of the Federal' Cabinet. Each subsidy will be studied separately and a decision reached concerning its continuance or otherwise, according to the nation’s economy. Federal Ministers say the negative vote in the referendum is an indication that the people want the ending of all Commonwealth war-time controls. The present control powers held by the "Federal Government could have continued until December 31. It would then have been competent for the Federal Parliament to renew the Defence Transitional Powers Act for another term. BOMBSHELL FOR STATES

The Federal Cabinet’s decision to relinquish Federal , controls over rents, prices, and land sales almost immediately has come as a bombshell to many State Ministers, who take a gloomy view of the States’ capacity to take over rent controls in two months and prices and land sales controls in three.

Political observers' iri Canberra point to a similarity between Mr Chifley’s reaction to the electorate’s decision last Saturday and his reaction to the High Court’s ruling on the 1945 Banking Act. His answer, to the court decision on the Banking Act was his proposal for the nationalisation of banking. The only State which has an adequate and comprehensive act to control its -prices is Queensland, where this legislation has existed since 1930. It is expected that the Liberal Governments in South Australia and Western Australia will have . little difficulty in controlling rents because they have been virtually carrying out this function for more than a year. In Victoria the Liberal Government has passed an act to control rents and could presumably set up machinery fairly quickly. Other States have no adequate rent control legislation ready.

N.Z. Chambers of Commerce Comment

AUCKLAND. June 3. The chairman of the Auckland Chamber of Commerce, Mr G. F. Johnston said the Australian referendum showed definitely that the people there wanted to see the end of controls. People in this country had the same wish, but, unfortunately could not indicate this to the Government as Australia had done. The Auckland Chamber, as well as others had long urged that controls should be removed or gradually reduced.

The Australian position had no bearing on that locally and was certainly something to take heart from. Other members agreed price levels and stabilisation were unbalanced. The Government should take note of the Australian decision,.