Untitled

Hokitika Guardian, 15 July 1930, Page 4

Recuumkg to the subject above dealt with there is the case in point of Australia. The Commonwealth Government has undertaken a most difficult task in.its effort to right the national finances. But there is determination on the part of the Ministry to enforce a policy which will achieve the purpose desired, and individual Ministers have explained that they are not going to he baulked in their effort, because of the storm of opposition. Mr Scull i n has replied by asking his opponents to suggest some better way, and until that is revealed the proposals will be proceeded with. Though the Federal Budget was presumably prepared by Mr Theodore before his retirement ,Mr Scull in, in his dual capacity ns Prime Minister and Treasurer, must take full responsibility for it; and |t js by np means an encouraging financial position. Mr Seulhn is no doubt right when he attributes the financial difficulties with which he is now struggling cihiefiy to the wide fall in..the prices of commodities, But though this collapse has been, from Australia’s point of view, inevitable, the people and the Government of the Commonwealth, says an exchange, must accept their share of blame for the reckless extravagance and the equally reckless borrowing that have aggravated the e/fects of falling prices and combined with them to produce the present unfortunate situation. , From the standpoint of public finance, Mr BculJin has a difficult problem /to handle; and he has done ins best to devise ways and menus to meet a short, age of revenue estimated at £14,000,000, Unfortunately, though some of his remedies may be effective, all of them are sure to be unpopular. He is imposing Customs duties—apparently “for revenue only"—to the extent of £5,700,000 and he will raise £5,000,000 by means of a sales tax, levied, ns in Canada, on imported goods and manufactures, but not on primary pro. ducts. These imposts are not likely to be well received by the mercantile section of the community, and the increase in income tax above the £SOO limit will certainly evoke criticism and render the Labour Government less .acceptable than before to a very large number of electors. Ah even more dubious experiment is the proposal to increase postal charges from lid to 2d per ounce throughout Australia and the Empire. But it is easy to find flaws in any Budget, and Mr SculMn at least deserves credit for making a bold attempt to straighten out the Cloinmonwoa.lth’fl financeis before the situation becomes irretrievably (lost. The plight of Australia financially was Mo spinous that heroic efforts were called for to retrieve the position, n .nd the Government is certainly not shirking its responsibilities, The fiscal policy of the Labour Government js going to have a searching effect on the position of Australia, but the people are ooming to realise that drastic reforms are necessary. This applies alike to increased revenue, and retrenchment in expenditure, and the general situation seems to call for the determined action

for which the Federal Hovernment of the day is now responsible.