FEDERAL POLITICS

Hokitika Guardian, 23 May 1931, Page 5

FEDERAL POLITICS

WHAT EXPERTS PROPOSE. 20 PER CENT. TAX ON INCOMES. Australian Press .Association.) CANBERRA, M«y 22. 'I he Experts Committee w' ! o were appointed by the Loan Council to inquire into Australian financial and etonnmic.tl problems, have made liras tie recommendations. They include tne following:— ‘1) A twenty per cent, reduction in tl’.e cost of government generally. (2) A twenty per cent, cut in the aggregate cost of the public servants’ salaries.

(3) A corresponding rod net ion in the expenditure on the social sen ices. (4) A tax of twenty per cent, on all fixed incomes, such as the interest on bonds and on mortgages on other investments.

The Committee points out that the payments by the Commonwealth towards the war pensions and other pensions, als° the maternity allowances and the social services generally are enormously greater than those being made in the United Kingdom, in Canada, and Now Zealand. Therefore, they state, tlieae payments should receive immediate attention. The fapt is also emphasised that the accumulated deficits will amount to thirty millions at the end of the current financial year, and that, if no remedial action is taken by the Commonwealth and the States, t!i t . combined deficits will aggregate filfy mil. lions by June in the year 1934,

SUGAR INDUSTRY

CANBERRA, May 22

The Sugar Agreement was to-day under discussion in the Federal House of Representatives, ft was the subject of bitter criticism by trhe Opposition members, one of whom, Mr Parkhill. declared that Australia was paying £'5,500,01)0 per year to sustain the sugar industry. This would lie sufficient to pay the interest on the overseas debt. The high price of sugar had caused a reduction in the consumption of tea million pounds weight of iain.

Mr Prowsa described the' sugar industry as a “white elephant, ’ and as battening on the wheat growers, who, lie said, were receiving no assistance.

ABOLITION OF SENATE

SYDNEY. May 23

A special meeting of the Executive Council re-enacted the Government regulations of giving preference on the waterside to Federation members. These will he in force in some days as the Senate does not meet until Wednesday.

Declaring that the Senate had no policy except checkmate of the Representatives and Government and that the regulations, which it disallowed, were intended by the Government to maintain pence and order and equitable distribution of work on the waterfront, Mr Scitllln said;—“The duty to govern rests with the Government, but if the Senate continues to exercise its powers excessively and perversely, as in this oa9e, merely negativing work of the House of Representatives and Government without itself having authority to act. Then the regulation of the Administration and indeed the Government become impossible, Jf the Senate ai-e determined to block legislation it will greatly strengthen the already strong case for its own abolition.”