BRITISH BUDGET.

Hokitika Guardian, 18 April 1923, Page 2

BRITISH BUDGET.

DEBATH ON BUDGET. I.ABOUE LEADER’S COMMENT. AUSTRALIAN AND N . 7. CABLE ASSOCIATION. LONDON, April Mr Ramsay MacDonald, Leader of tlie Labour Party, opened the Budget debate. He said that in the great fundamental point of debt reduction, the Chancellor had shown a courage and wisdom that had not been shown by his predecessors since the war started. He regretted that no mention was made of a capital levy, such as tho Labour Partv would undoubtedly try. Me described as false tho argument that a reduction in the income tax would moan a larger amount tor investment, and a consequent increase in the volume of trade. Of the (>d in the £ reduction on income tax, not more Id would go to stimulate trade. Thet rest would he spent in parasitical forms of luxury. Ho denounced the Government’s decision not to reduce the sugar tax. which was a burden on the working classes, who in the taxes on tea and sugar, found £40,000,000 yearly. The Labour Party’s view, he said, was that the only way to increase trade was to increase the masses’ standard of living.

Sir R. Horne said the Liberals woiibj support Mr Baldwin’s attempt to fcduce expenditure in every direction. He thought that last year’s surplus should not Ik* swallowed up by the maw of the vast sea of debt reductions. It would have been better to devote the present surplus to vast road making schemes, and to assisting agriculture, which would reduce the unemployment, withouLfurther taxation, lie was Mr Baldwin should refer the betting tax to a committee, instead of the Government deciding the question. The House of Commons was crowded to bear Mr Baldwin deliver the first, Conservative budget since 1900. Mr Itoiiar Law was received with sustained cheering. He is still suffering from laryngitis, and will be unable to take part in.the Budget debate, or to speak in the House at all for a fortnight. Unlike NY. E. Gladstone, who refreshed himself with egg flip, and Hr Goschcn. who sipped brandy and water. Mr Baldwin relied on two glasses of water. Ilis speech was remarkably short. It lasted only an hour and nliall. There were no oratorial embellishments, but. unlike some earlier Chancellors, every word was heard, every point made plain. When Mr Baldwin announced that there would lie no reduction ill the duties on tea and sugar, there were cries of “.Shame!” from the Labour benches. Mr Baldwin explained that there was a world shortage of sugar. He said if the duty were reduced the demand would increase, and the price would go up, so the consumer would lose all the benefit ; but he lio]>ed that the conditions ot the world’s markets would justify a reduction of this duty at an early date. An interesting passage in the speech explained why the surplus of £100,000,(HU) was being automatically applied to » the reduction of debt. Mr Baldwin said thiif it was a misapprehension to think that this sum was still in their possession to hold up. A surplus of £100,090,000 in the Exchequer would produce a crisis of very great severity on the money market. It had been impossible to colleet the income tax revenue for the last quarter of the year. Incidentally. Mr Balduiu said that the amount owing by tin* Dominions and Allies was £2,09.1,000.000, of whirte Australia owes £00,298,000, Now Zealand £20,482,000, Canada £ 13,810,00(1; and South Africa £l2 880,000.

Lobby opinion regrets that the wholo of the corporation tax was not taken off. The general comment is that it--is a careful hut commonplace budget. ’ The National Liberals hold strongly "v that, by putting £101,500,000 last year and (M 0.000,000 this year to debt reduction, the Government is making the burden oil industry too heavy. In view of the huge realised surplus, it is held that £.‘25,000,000 for debt rentier tion would have been ample, enabling the Chancellor to take Is off the income tax and to reduce the sugar duty. The Labour Party say il is a rich man’s budget. They will propose a reduction in the tea and sugar duty, to 7d and the abolition of the duly on dried fruit.

The Labourites consider that tlm brewers, in view of their large profits, should contribute more than 4s per barrel towards the cost of the beer reduction, as the Government is giving them a rebate of 20s.

In the course of his speech, the Chancellor, Mr Baldwin, said: “In four v ears we have reduced our external debt by L'200,0tlll,0t)0, and have reduced our internal floating debt from L 1,020,000,000 to £-10.000.1100. We have only to faeo this year LSI,500,(100 of 5 per cent bonds maturing between Septemlier and February. “Nothing,” he said, “would ease the task of finding capital for industrial purposes so much as a steady redemption id' the public debt, lie did "v not intend to provide any margin for supplementary estimates, lie intended to do his utmost to secure further economies. It was proposed to provide a sinking fund of £40,000,000 this year, and C 15,000,000 next year, and a L50,000,H1M) maximum thereafter. “Our debt burden is verv heavy,” he said. “The interest alone has absorbed over L.'100,000.000 per year.” lie estimated the total expenditure lor 1025-21 at £''oo,olo,ooo. He estimated that the Customs and Excise revenue would yield £274,000,000, and that the total inland revenue would bo £115,000,000. The total revenue he estimated at £'•52,050,000. -jQ. He said a reduction in taxation was necessary, but would it kelp if he had to impose if next year? He was greatly attracted by the plan for a tax on betting, but lie had not had it sufficient opportunity for examining the matter. He intended to remit the betting tax question to a select. committee. It was intended to effect postal reductions to the extent of £2.500,000 yearly. The beer duty was being reduced to make Ihe retail selling price Id per pint less. Then, also was (5d coming off the income tax. The porntion profits fax would be reduced by fid in the £ on profits after .Tune Jib Tlie various reductions proposed would cost £.‘1!,150.00f) this year. -Mr Baldwin said be believed they had reached the peak of the load of taxation. In the Budget debate, Mr Rawlinson ‘ said lie welcomed the betting tax inquiry. He was strongly opposed to bating. and believed it woultl bo good for the country to tax it. Ti e taxation resolutions were agreed to, and the House then adjoin tied. EFFECT OF KEDUCTIONS. LONDON, April 10. The duties on eider and sherry are repealed. The mineral waters duty lias been halved. It is estimated that the various re- , duetioits for the full year are as follow:—lncome tax. .£2(5,000,000; beer duty, £100,000,000; corporation profits tax, £12,50(1,000; postul notes, £1,5(50,Out); t-lepboites, £{'4o,Uot»; eidvf ft ltd itjlnp'yi w'fltcf dtliju 3 ; .KVifi.PO'.b

NEW POSTAL RATES. Tlio now postage rntos nro announced On letters the rates are:—lnland, I><l for 2oz, and Jd for each additional 2oz; to the British possessions and the United States, loz l.Jd, and I<l for each additional loz: printed papers, 2oz for Jd, and every additional 2oz to 21b, id. Tcleplione rentals are reduced L'lo yearly. Public calls are to he 2d instead of .'id.