POSITION IN AUSTRALIA.

Otago Witness, Issue 4028, 26 May 1931, Page 27

POSITION IN AUSTRALIA.

CONFERENCE OF PARTIES. CANBERRA, May 21. In the House of Representatives this afternoon Mr Lyons, Leader of the Opposition, in announcing its decision upon Mr Scullin's invitation to a non-party conference, said the Opposition did not think such a conference would assist the financial and economic position of the country. “As an alternative,” he added, “we are prepared to validate tariff proposals for a period of six months, and give supply for three months in order that there may be a prompt appeal to the people by a general election. If, however, the Government will abandon its policy of inflation and political control of banking and will endeavour to bring Government expenditure within its income within a reasonable time it can definitely count on the support of the Opposition.” Dr Page, Leader of the Country Party, said that his party, while anxious to extend its co-operation in a non-party spirit in order to find a solution for Australia’s difficulties, regarded the Prime Minister's plan as quite impracticable unless the Government was prepared to carry out the decisions of the non-party conference. He added that the present intolerable position should be ended by a general election. Mr Scullin expressed deep disappointment. Surely, he added, the Opposition had remedies for the present impasse. They would have to disclose them to the people at some time; then why not now? “Frankly,” he said, “I am disappointed.” Mr Marr: So is the public. Continuing Mr Scullin added: “As the overtures of the Government have been rejected we must now go on.” CONTROL OF MINING. SYDNEY, May 21. Provisions for the control of the coal mining industry in this State, together with schemes for the exploitation of the by-products of coal, are contained in a Bill introduced in the Assembly by the Minister of Mines. It is proposed that a board be established to control the operations of all mines, including output, the closing of unprofitable collieries, the settlement of all disputes, and the transfer of surplus workers to other avenues of employment, the board also to have the right to control the dividends of coal companies, to introduce improved methods of working mines to prevent wastage, and to increase the measure of safety to employees. DEBT TO COMMONWEALTH. CANBERRA, May 21. Mr Theodore (Federal Treasurer) said that the net amount now owing by New South Wales to the Commonwealth was £1,754.762. A writ had been issued for £557,519, and a further writ was in the course of preparation. STATE TRANSPORT BILL. SYDNEY, May 21. A new Transport Bill was introduced into the New South Wales Assembly to-day by the Premier. It aims at penalising competitors with the railways and tramways. The Premier pointed out that the State’s heaviest liabilities were due to the losses on the railways and tramways, which had cost nearly £138,000,000. In addition roads and bridges had been built at enormous cost to the taxpayers, whereas the road users were paying a very small percentage of the capital outlay and maintenance. The Government intended to-tackle the task of making the railways and tramways pay, and the Transport Bill would enable the task to be started at once.

THE STOCK EXCHANGE. SYDNEY, May 21. In the absence of any major development in Australian political and financial spheres investors are inclined to mark time in buying. Inquiry at the Stock Exchange is limited, and the turnover has recently been of small. dimensions. New Zealand Government Debentures (54 per cent., 1937) arc firm at £l2O. Commonwealth bonus fluctuate from day to day, while bank stocks are generally steady. EXPERTS COMMITTEE’S FINDINGS. MELBOURNE, May 22. The Experts Committee appointed by the Loan Council to inquire into the Australian financial and economic problems has made drastic recommendations, including a 20 per cent, reduction in the cost of Government-generally, a 20 per cent, cut in the aggregate cost of public servants’ salaries, a corresponding reduction in expenditure on social services, and a tax of 20 per cent, on fixed incomes such as interest on bonds, mortgages, and other investments. The committee points out that payments by the Commonwealth towards war and other pensions, maternity allowances, and social services generally are enormously greater than in the United Kingdom, Canada, and New Zealand. Therefore they should receive immediate attention.

The fact is also emphasised that the accumulated deficits will amount to

£30,000,000 at the end of the financial year, and that if no remedial action is taken by the Commonwealth and the States combined the deficits will aggregate £50,000,000 by June, 1934. SIR GEORGE PEACE’S WARNING. CANBERRA, May 22. The Assistant Minister of Industry (Mr Holloway), referring to the attack on the Government by Sir George Pearce, said: “This latest outburst has stamped Sir George Pearce as the most bitter and vindictive Labour turncoat the Australian Political and Industrial Labour Movement has yet produced. Ever since 1917 he has pursued with the most brutal and ’ revengeful vindictiveness a continuous vendetta against the Waterside Workers’ Federation. Sir George ridicules the fear of bloodshed, but those who for the last 18 months have been continually urging discipline and order amongst the thousands of unemployed watersiders who have been displaced" by men from outside districts take a much more serious view of the continuous and obstinate policy of the Senate toward them.” Sir George Pearce warned the Government to take stock of the Constitution and to consider whether it had not pursued the present procedure far enough. If the Government continued to adopt its present procedure it might find that the Senate had resources other than those it had used so far. Tlie Government should not force the Senate to take action which was within its power and which might have unexpected results. UNEMPLOYED REGISTRATIONS. SYDNEY, May 22. The unemployment registrations in New South Wales have reached a record total of 115,000. The dole is now costing the Government £300,000 per month. The total expenditure on unemployment for the 10 months ended April 13 was £1,343,000, hut the present rate of expenditure is £3,500,000 per year. TRANSPORT WORKERS’ ACT. CANBERRA, May 22.

The Senate, by 19 votes to 6, disallowed for the third time the regulations under the Transport Workers’ Act designed to give preference of employment to members of the Waterside Workers’ Federation. The Government members made it clear that new regulations, having a similar effect, would be introduced.

INSURANCE COMPANIES’ DEPOSITS. SYDNEY, May 22. The New South Wales Legislative Council, in committee, amended the Insurance Companies’ Deposits Bill so as to permit companies to lodge approved Government securities in lieu of cash deposits as a guarantee of good faith. Members pointed out that if the Government insisted on huge cash deposits several of the smaller companies would be crushed out of existence. The general opinion was that Mr Lang required the cash to finance the public services. BASIC WAGE. BRISBANE, May 22. The basic wage has been lowered by the Industrial Court. The adult malfe rate is reduced by 3s to £3 14s per week, and that of adult females by ,6s to £1 19s. AN OPTIMISTIC FORECAST. SYDNEY, May 23. Sir George Fuller, late Agent-General for New South Wales upon his return from London, said he had the fullest faith in Australia’s future. He was confident that there would be an early return to prosperity. Practical help from Great Britain would be forthcoming directly evidence was shown that the Australian people were determined to pull together. He added that Mr Lang’s recent default had vitally affected his State’s credit in London. LOAN COUNCIL SUB-COMMITTEE. MELBOURNE, May 23. The Loan Council Sub-committee on Saturday prepared a ’drastic report in dicating further taxation and a reduction in the payment on social services, with a review of the deductions at present permitted. Mr Scullin’s inflation scheme was dismissed as providing no remedy for the country’s position. These conclusions will be presented to the Premiers’ Conference on Monday. The attitude of Mr HilL (Premier of South Australia) and Mr Hogan (Premier of Victoria) on Saturday indicated to Mr Scullin, who attended, that the Federal Government could no longer isolate itself and ignore the financial experts’ recommendations. The sitting, which lasted all day, ended without result, and the council adjourned till after the Premiers’ Conference. Saturday’s discussion is said to be overshadowed by the effects of New South Wales’s default and Mr Lang’s refusal to face the need of financial restoration. The Treasurers of the other five States are convinced that the general position cannot be redeemed unless New South "Wales is brought into line.