BUDGET PROPOSALS

Hokitika Guardian, 2 May 1928, Page 1

BUDGET PROPOSALS

MR CHURCHILL DEFENDS RATING RELIEF.

(United Press Association.—By Electric Telegraph.—Copyright.)

RUGBY, April 29,

M*' \\ inloit Churchill, Chancellor of the Exchequer, replied in a speech at Newcastle to criticisms of the proposals contained in his Budget speech for relieving ol the depressed basic industries from the burden of local taxation.

He declared: “We have launched our advance against what I call the Hindeuburg Line, a threefold line, against the triple entrenchments of unemployment, trade depression and local taxation muddle.” Agriculture, coal, cotton, iron and steel, engineering and shipbuilding were vital means by which the wages of the vast majority of wage earners and breadwinners were provided. Those industries were in difficulties at the present time. He did not propose to give favour to any particular industry, hut if any industry showed that its natural activities were being curtailed, the removal of its burden of taxation was not a favour, hut a longdelayed and necessary act of justice. Local taxation of depressed manufacturing industries which he had mentioned, would he reduced in October. 1029. on an average by three-quarters, and that of agricultural producers would ho abolished entirely. The product of heavy industries could only he carried by railways and the railways would lie relieved from local taxation so that they could help, the heavy industries by lower charges. Mr Churchill recognised the sacrifice which the owners of motor vehicle? would he called upon t.o make in paying the tux on imported petrol, which would contribute to local taxation relief. He mentioned that the tax on petrol had also another object. Tin's was to encourage the scientific extraction of oil from coal in this country, ff that were done, he said, it would renew, the vast economic advantages which this country had derived in the nineteenth century from the position of its marvellous coni fields.