FEDERAL BUDGET

Hokitika Guardian, 29 September 1927, Page 2

FEDERAL BUDGET

SUBSTANTIAL TAX CUTS. (Australis ti A N.Z. Cable Association.) Canberra, Sept. 28. In the Federal House of Representatives, Dr Earl Page (Treasurer) delivered the Budget. He said that at the end of July last, an approximate statement of the Consolidated Revenue Fmid for the year 192 G-27 disclosed a surplus of £2,633,658 on the year’s transactions. The actual surplus proved to he £2,635,597. The estimated surplus for the year was £149,381, and the actual surplus thus was £2,186,216 in excess of the estimate.

The accumulated surplus at the end of June, 1927, amounted to £2,921,494, which had been allocated as follows: Naval construction and reserve for defence, £2,000,000 ; science and industry investigations. £250,000; civil aviation, £200,000; national insurance fund, £200,000. The amount set aside for National Insurance, lie said, was to form the nucleus of a fund in connection with the scheme of national insurance, legislation to cover which would he introduced during the present session. Tlie public debt at the end of June last totalled £461,067,742.

In view of the increased surplus, he said, the Government had decided to reduce taxation on incomes by ten per cent. The land tax would also be reduced to a similar extent. The Government would also legislate during the coming session to give effect to its policy to assist citizens to own their own homes, and for this purpose £20,000,000 would lie provided. Mr Pratten (Minister of Customs) announced that lie would introduce a Bill increasing the import duties on all American motor cars, with a further preference for the products of Great Britain.

In the Federal Senate, the Public Accounts Committee’s report on tlio Commonwealth Shipping Line was read. It stated that, having regard to all the circumstances, the Committee is of the opinion that if the Commonwealth Line should not bo retained as a direct Governmental activity, but it recommends the establishment in Australia, by Australians, of a company to take over from the present holders tlie~ships, comprising the present fleet, and to run the line under the control of a company free from outside interests, with the utmost possible guaranteed support of the Government. There is a minority report by the Labour members of the committee, i t recommends tlio retention of the line bv the Government.