WELLINGTON NEWS

Hokitika Guardian, 21 July 1930, Page 3

WELLINGTON NEWS

AUSTRALIA’S PARLOUS PLIGHT. ,v; : .. ■ •- ' ,Specia! Correspondent.) WELLINGTON, July 18. It is practically impossible for people in New Zealand to appreciate the parlous plight into which Australia has drifted through years of excessive borrowing and extravagant expenditure. Nor can we realise over here, the drastic efforts that are being made to set things in order. The Federal Budget presented by Mr Scullin anticipated a deficit of over £14,000,000, and the trade returns of the country show an equally bad state of affairs. ■ For the eleven months to the end of. May the exports amounted to £116,026,959 and the imports to £124,705,945, an excess of £8,679,886 of imports. Of course imports have shown a strong tendency to contract, and the shrinkage in April .and May was pronounced, but the exports also have (tohLraStecl. .The Budgets in all the Statbs have 'disclbsed balances on the :wrong, side of the ledger. The Premier of South Australia stated in -Parliament - that the major cause of the financial difficulties in that State were- disabilities arising from Federation; the war, over borrowing, continued deficits in the State accounts, unfavourable seasons and the .shrinkage in the national income due to the falling prices of exports. The plain fact was that they had been living beyond their income. That fact had been obscured by the inflow of borrowed money which has now ceased, and they found that the national income was insufficient to maintain their standard of expenditure. They were now called upon to liquidate -their ob'igations when the country was seriously affected by drought and falling prices. He added that expenditure would , have to be curtailed in Government grants to local governing bodies, ’boards, commissions, councils, public for, quasi-public institutions at present in receipt, of grants; Expenditure ’on roads,would have to be reduced,- the expenditure on education would have to he modified and salaries and wages would have to be reduced by aenera.l retreiichment. The Premier of New South Wales tackled the same job some time ago, and passed a number- of Economy Acts which are now operative. . The Federal Government has imposed ruthless taxation, which lowers the standard of living more thoroughly tharr-would be the ease through a reduction in salaries and wages. Light-weight-woollen fabrics favoured by women of moderate means have been badly hit, and it is not likely to inspire any support for the slogan “wear more wool,” but might he the reason for introducing the slogan “wear no wool.” Up to November last the tariff on Woollen materials weighing more than six ounces per square yard was Is per yard plus 30 per cent, ad valorem from the (United Kingdom and 2s per yard plus 45 per cent, ad valorem, from foreign countries. Now the rates apply to all woollen materials of less than 3 ozs per square yard weight. The result is that such popular fabrics as wool fabrics as. wool georgette, wool de chine, nuns veiling and fine face-cloths show tremendous increases. A wool de chine selling under the old tariff at 7s lid per yard, under the new tariff costs 13s 6d per yard and represents an increase of 19s to 20s on a dress length. A better quality of the same material previously selling at 8s lid per yard will now cost 14s lid. Face-cloth, much favoured in Australia for coats and costumes, previously selling at 19s lid now costs 25 c-per-yard. A 54-in. wool de chine, the first cost of which is 2s lid will cast 9,s Id to land in Australia. The tariff is not a protective one for none of the material named is made in Australia. Less wool must be consumed in Australia as a result, and substitutes such as artificial silk will play an increasingly important part in women’s clothing. The tariff lovjtrs the standard of living and does it quite as effectively as a reduction of wages. The Labour element has exercised a dominating influence in Federal' /panel State polities, and they have endeavoured to push down the throats of the people the wild Marxian doctrines. Australia’s plight should be an object lesson for New Zealand, and the slogan should be “no Labour Government for New Zealand.