LABOUR FINANCE

Hokitika Guardian, 26 November 1930, Page 5

LABOUR FINANCE

(Christehureli ‘ ‘Times”). There is probably no truth in che cabled suggestion that the Labour Government in New South Wales proposes to help out its finances by a system of forced loans, but the story shows how nervous public opinion in the State is concerning the possibilities. The Government is in a difficult position, as any Administration must be in Australia to-day, but its difficulties are intensified a hundred times by the wild promises of the election campaign. There can be no real solution of the Australian problem except that based on stern economy and hard work. The national income is falling and apparently will continue to fall, and any Government that increases taxation at such a time is adding to the troubles of the people. There must be some increases in the tax burden to meet interest and other permanent charges, but if' these are counterbalanced by drastic economies the levy on the mass of the citizens will not be greater than can be borne.

I Tn New South Wales, however, the Labour Government is definitely committed to a policy of maintaining .high wages and short hours of work. Tt has promised the State employees that tliev j will be kept in their jobs and that their I pay will be maintained. Tt has promised to check the downward trend of general wages. Tt has promised, fmt ther. to provide work for the unemployed. There can therefore he no escape from increased taxation, and it is evij dent that business houses are .expecting some sort of penal levy, j The suggestion that compulsory loans will he raised does not indicate the precise character of the threat, but if Labour does resort to this method of raising the wind it must take the form of a, levy on incomes, and in effect, it would amount, to a 10 per cent induction of wages. This sort of finance is only postponing the day of reckoning, but apparently Labour lias to learn that economic problems cannot he solved by juggling.