CAPITALISATION SCHEME

Hokitika Guardian, 10 August 1932, Page 8

CAPITALISATION SCHEME

CONFIDENCE IN VICTORIA. MELBOURNE, August S. Addressing' members of the United Australia Party on the Premiers’’ Conference plan to capitalise unemployment' relief 'taxation, the Premier of Victoria, Sir Stanley Argylc, said re- . cently that it vas not intended that that special taxation should ocritur*e at existing .rates . ) The Premiers hqd agreed, he said, that the adoption of the unemployment relief plan would enahle taxation to be gradually redheed until a point . wah reached when an unemployment insurance scheme could be introduced. .Rut the -Capacity of Australia to emerge from the existing economic depression depended solely on an im--'proveinent of prices of exportable surplus products. “The objective we should strive for,’’ said,'“is to get the unemployed off the dole. At present Australia is spending eight millions a yeai on sustenance. This is an economic waste. Tills eight millions represents the interest a 6 pel- cent, on 133 millions. If this amount were raised as a loan it ivpuld take 28 years for its amortisation with provision for a sinking fund of 2 per cent.''

1 “One million pounds will employ 5000 men at '£4 a week'. Sustenance for the‘same number of men would cost £20,000 1 a year; As interest and sinking fund on the million pounds represented only .£60,000 a year, we will be £200,000 a year better off, and that money can be used to provide more \vot‘k.

REPRODUCTIVE WORKS. “The Governments have decided that the spending of eight mililons a year on the dole should not be' perf mitted to cohtin'ife, blit"’that' it should be! employed' to finance works that ; will be revenue producing in two* or three years;’’ Sir Stanley Argyle said that under ' the scheme to abolish the dole, and put \men m'useful employment, he antici- ? pated that it would be possible to re- ■ duce taxhtkn. That was his objective., proposed to be raised' would be wisely spent after thorough investigation and examination by expert financial and business men. He felt assured that eventually a position would be reached when one could envisage a' steady reduction in taxation. It would 1 be possible, under the scheme to giaitt assistance to industry but only sound business propositions Would ]>© considered!

BUT PRICES MUST RISE. Sir Stanley Abgyle said it was necessary to issutp a warning that thd optimistic pictilre he had presented depended for its realisation upon a substantial indrease in commodity .pfioes. Should' prices rise, progress would be steady. If they remained where they were, or even fell further, then the situation was black, ana there was no; future fop Australia. ThercOuntiy s’mply could 'hot dairy on with' existing ‘prices. There- ivouhl be a complete collapse of the social system."’ ' -‘

The rehabilitation scheme was based on better prices and he believed that when woild affairs became more settled a steady improvement would be noticeable.