FEDERAL FINANCE

Hokitika Guardian, 4 November 1929, Page 1

FEDERAL FINANCE

WHAT LABOUR FINDS

(Australian Press Association)

CANBERRA, Nov. 2,

The first meeting of the Federal Loan Council since the Labour Government has been in office, will be held at Melbourne on the 11th. November, it is understood that the new Ministry promises to float a loan of £lO,000,000 as soon as passible. The Federal Treasurer, Hon Mr Theodore, estimates that £2,Q00,000 additional revenue must be raised to balance the Federal finances. The Federal Cabinet’s investigations are understood to have disclosed a serious financial position in the various Treasury accounts which have been overdrawn. [Hon Mr Theodore, the Federal Treasurer, has to face a difficult outlook, owing to the tightness of the London and New York money markets, and the necessity of converting about one hundred and thirty minions wo of loans that are maturing in the next fourteen months. The fall in the wool prices means a drop of from ten to fifteen millions sterling, available in London. This is the source for purchases for Australia. The coming Federal Budget is therefore causing apprehension, since heavy taxation increases are inevitr able. v One suggestion is that the petrol tax will he raised from two pence to six pence per gallon. It is stated that petrol only costs five pence per gallon to land in Australia, and is sold at two shillings per gallon.