BRITISH PARLIAMENT.

Hokitika Guardian, 27 April 1928, Page 1

BRITISH PARLIAMENT.

hknisii budget. Aaslralian Press Assn.—United Service LONDON. April 21. lion. \Y . Churchill. in presenting the Budget, said: " Unless a catastrophe on a great scale happens the linances might strongly to revive in 102!) through the steady revival of trade and business. 1929 should he a year ol real advance towards prosperity ; indeed onposition in 1020 promises to be the least unsatisfactory that I have had ilurinjr my tenancy of the Exchequer.” He kept the surprise announcement of income tax relief until the last, station that resources had not allowed a reduction to the standard rate, but lie realised that the burden ol bringillm" up children should he lightened where possible. Therefore he proposed allowances for children, which were at present C3t> for the first child, and £2i for the others, should he raised to CliO and £.70 respectively, furthermore, a concession would he made that allowances should be applicable to the year of the child’s birth. This would mean that a married man with three or more children, and receiving income ol t- MX> annually would he tree ol tax. II he is receiving an income ol f."">00 annually it would mean that the present tax would bo halved, ll £7OO, the reduction would be seventeen pence, for the standard rate of £BOO a reduction of fourteenpence ; a thousand a reduction of eightpence. ’I he cost ol reductions would amount to £2.100.000 in the present vear and £1.300.009 for a fill

Hon. \V. Churchill made his Dudget statement in the House of Commons this afternoon. He said the Budget of last year had succeeded m spite of adverse circumstances. . Dm blow was a five million failure m revenue from beer. There would have been a deficit for the third year running but for the continuance ol the economy campaign. Ten and a halt millions had been sated by .om.u meets Departments and encouraged •iv the success „( last year he proposed repeat the process and save money wlmrevcr possible in administration. They had done well during the year 'n the repayment of Dm tleht - . A new sinking fund had keen raised L.bave the early lev.-l of fifty nidlmu sterling to the unpreeeUent ligurcs of s p- t ' -live millions. In addition t.ie Budo'et had borne payment of more tift.mil millions for accrued into, en tinon saving certificates la.' nominal dead weight of the debt on \pril Ist. 1928. was seven thousand i'iv,. hundred twenty-seven millions sterling He had found twenty-eight milling more for redemption of debt titan Mr Snowden (Labour (ham-el-lor of the Kxeheqner) had done in 1921. The position for dealing with future conversions had been greatly improved by what had been accomplished in the past. The total expenditure for 1.92. was estimated at £803,193.000 sterling The expenditure on consolidated Hind services was placed at £39S.<XKhCO:I and total supply services at £4O. .0t40.(i ,v) The total expenditure compared wiri, the estimate of £833.390.000. lilst year was £838.38.7.000 actually

spent. proceeding to estimate Hie revenue on the existing basis of taxation the Chancellor of the Exchequer said customs and spirits revenue moved torward hv two to three millions yearlyin accordance with the growth of population and general maintenance of the consuming power. He saw a chance of recovery in revenue from beei which emboldened him to repeat . his estimate of last year. The revenue front spirits on the other hand

must be expected to resume its con ■ tinuous descent. Increased duty upon tobacco bad more than realised expectations. Taxes on silk and other imports under the Industries Saleguarding Act showed on the whole an increase. He expected a yield ol three and a quarlcr million this year Horn the betting tax against two millions seven hundred thousand last year. The yield of duties on tea and sugar in the coming yeai might he expected to tospoml and to show an upward movement of (onsuming power. .Mr Churchill spoke for three hours eleven minutes. Mr I’. Snowden (Labour) congratulated the Chancellor on his brilliant parly achievement. He welcomed the allowances to children, also the rating scheme. II is only criticism of the latter proposal was its delay till 1929. Mr Lloyd (leorge welcomed the income tax exemptions and characterised the rating relief as the most dominant and important feature. The House rose at 5.7. COMMENTS ON BUDGET. LONDON. April 2-7. To-day has been a day ol reckoning in which everybody has been deciding how far the Budget alfeets them. Earmers are eompalining that eighteen months' wait for relict is too long and hopes of an early benefit are dashed, leaving them “ worse off than ever, because they had been assured oi an eiirlv release from their burdens.” Tlie fiercest criticism is from motorists. It is pointed out that many commercial vehicles would he sold, spreading unemployment. Motor taxation has increased by 2*70 per cent ill two years. Kor instance, a London omnibus yearly tax. was £Bl sterling in 1923 and £IOB in 1927 and approximately C2OO in 1928. London Omnibus Coy. says the cost will lie £400.000. Private motorists numbering two million will find the annual tax increased from Co to 213 sterling, according to their petrol consumption. Railway companies arc pleased with the rate ol relief. Lord AI ion oil way (Chairman of the Metropolitan Railway) said: f only wish the petrol tax were sixpence.” PRESS COMMENT. LONDON. April 27. The newspapers arc practically uiiimimou.N in describing it ns nil ind list rial Budget in cmilormiiy to the present needs. The '-Daily Telegraph" says the deplorable plight of the basic industries ims compelled the Government to take up one of the most urgent problems of the day. namely, the revision of the relationship between national and local taxation, 'they have recognised this can only he done in stage-, the first of which has been entered with a due sense of gravity, of the far reaching immense reactions. This is the real heart of the Budget and it is hoped British democracy will grasp the essential purpose of the scheme. If a heated discussion arises, as it may on the petrol tax. let the disputants remember that the primacy object is to help to create a pool tor Hie relief of sorely-smitten industries, and a reduction of the number of un-

emplovcd. The’ "Daily Express” says the heavyimpost of fourpeiice per gallon on petrol may not he oppressive, owing to the present low price, but should petrol rise, it will lie burdensome. Therefore it is of the utmost importance that the Government .should use its power as a majority of the stockholders of the Anglo-Persian Company in maintaining the price at the present level. The "Morning Post” states Mr Churchill realises the financial policy must be made to suit industry, not vice versa. It is known that out of the now chronic population of n mil-

! lion unemployed nine-tenths are from the staple industries, which formerly maintained the greatness and strength of the country. The ‘'Daily Herald” congratulates the Government on awakening to the plight ol the necessitous areas, hut ipiestions .Mr Ghurcldll’s scheme. It points out the tax on petrol a fleets not only the private motorist hut the growing national transport services. It complains that the Budget wilt mean a general increase in the cost of living, while land owners will honefit enormously from the rate tree farms. BUDGET COMMENT. LONDON. April 25. In the Commons, Mr Philip .Snowden spoke in Committee on the Budget. He said that an analysis of the Chancellor's estimates was disconcerting. lie feared that Mr Churchdl was only repeating his last year's mistalce of relying on there being cheaper money, though there was every reason to anticipate a rise in the hank rate.

Mr Churchill, said Mr .Snowden, was insulting the intelligence of members when lie claimed that he had not been exceeding the Labour Government's expenditure. The cost ol the civil and fighting services for the year 1924-25 was £352.000.000. whereas last year it was £350,000,000. The average for the past three years_ was £307,000.000. The. total expenditure for the year 1 IhM-lM was £730.000.000. said Mr Snowden, whereas last year it was 0701, .500,000.

Mr Snowden pointed out that during the past three years, Mr Churchill had never paid the statutory sum to the sinking fund. Moreover, in the interval since Labour had been in office, the nation's 31 per cent con version stock had dropped from £BO 7s

(3d to £77 10s. Consols had dropped from £SO to £SO 10s. That was. said Mr Snowdon, the truest reflection ol the national credit. Regarding the petrol tax. Mr Snowden said that there already was proof that the consume*!* paying more than the Kxehec|Uii' received. It was a violation of all sound financial principles for Mr Churchill to levy taxation tins year which was not going to he spent in the present financial year. During the war time, the sixpenny tax . )t . ti o! «as abandoned, owing to the loophole- there were lor evasion. These loopholes were still unclosed. A nonsensical part ol the Budget.

said Mr Snowden, was the suggestion that the farthing per pound reduction on the sugar duty it would go to the consumer. It v.as most disappointing. Then the rating relic! was not to begin until October of the 'car 192'.. Sir Alfred Mon 1 said that Mr Snowden showed a lamentable ignorance when he suggested that the • that had taken place on Consols meant that the national credit was diminishing. Ho contended that the British national credit was good lor thousands of millions, as the war showed. The Budget would do something nit industry B the Government had the courage to use its power and influence to promote, not merely a reduction of the burdens on industry, hot to get industries together and rationalise their outlook. Then Britain would have a brighter industrial future. This was one of the most far-reaching statesmanlike Budgets for many years.

LONDON. April 26

Speaking on the Budget. Mr D. Lloyd George said that the rating scheme proposed in this Budget was a thoroughly vicious one. It would only give relief to some highly-rated area at the expense of other areas. It was not merely robbing Peter to pay Paul, but it was robbing the twelve Apostles. It would be moie preferable to deal temporarily with the most

necessitous cases, and then to take time to recast the whole rating system on a proper basis or place on the shoulders of the taxpayers the problem of the able-bodied poor rates.

Air Lloyd George declared the subsidy to agricult lire pro|»>sed was -a direct contribution to the landowners. Mr Churchill had spoken of “leaving the sterile plains and entering tin promised Land,” hut he was taking there only the. Federation of British Industries, the niineowners and the landowners; while the majority ol tlm people were being left on the and side of the Jordan. Sir P. Cuulilfe Lister said that the rating relief would give a cumulative stimulus to all industry at the expense of none.