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POSITION IN AUSTRALIA.

DEBT CONVERSION. CANBERRA, June 26. In the House of Representatives the Debt Conversion Agreement Bill was read a second time by 41 to 15 after an all night debate. Thirteen members of the Government and two of the Beasley faction comprised the minority. The division means that the whole of the Premiers’ Conference plan been endorsed, as the Bills which are to follow will merely make the plan operative. ASSISTANT MINISTER RESIGNS. CANBERRA, June 24. The Prime Minister (Mr J. H. Scullin) announced the resignation of the Assistant Minister (Mr C. E. Culley) on the ground that he was unable to support the economy plan, his objections being similar to those of Mr Holloway. VICTORIAN LABOUR MEMBERS. MELBOURNE, June 24. The State Labour executive has sent an ultimatum to the Premier (Mr E. J. Hogan) and the Minister of Public Works (Mr J. P. Jones) stating that unless they opposed the reduction in wages and pensions under the Premiers’ Conference financial plan their endorsements as Labour candidates would be cancelled. It is reported that other Labour members of the Victorian Parliament contemplate supporting the conference plan, in which case their endorsements will be withheld. A crisis is regarded as inevitable. THE FEDERAL CABINET. CANBERRA, June 25. Senators J. J. Daly (South Australia) and L. L. Cunningham (New South Wales) were to-day elected by the Federal Labour Party to fill vacancies in the Federal Cabinet caused by the resignations of the assistant Ministers, Messrs Holloway and Culley. CONFERENCE OF TRADING BANKS. MELBOURNE, June 25. The conference of trading banks, presided over by Sir Robert Gibson, chairman of the Commonwealth Bank, to-day decided to reduce the interest rates from June 26 as follows:— Fixed deposits, —. New money and renewals, —. Three months, 3| per cent, per annum. Six months, 3$ per cent, per annum. Twelve months, 4 per cent, per annum. Twenty-four months, 4j per cent, per annum.

The advances rates generally will be reduced in due course. The Commonwealth Bank announces that the deposits rate will be reduced by 1 per cent, as from June 26, and the advances rate will be reduced by 1 per cent, as from July 1. CRUSHING NEW IMPOSTS. SYDNEY, June 26. In the Legislative Assembly Mr Lang moving for leave to introduce his emergency Income Tax Bill, said that the banks were unable to lend the Govern ment any more money, and the only al ternative was to get it out of the people. There would be equality of hardship dur ing the next 12 months, but he hoped they would emerge in a solvent state. The people should make up their minds to contribute a large proportion of their surplus income for the relief of the evergrowing army of unemployed. The schedule is * as follows:—Earn ings of £4 and over, but less than £5. will be taxed Is in the £; from £5 to £6, 2s; from £6 to £7, 3s; from £7 to £lO, 4s; from £lO upwards a flat rate of 5s in the £. Assessable income other than wages will be taxed as follows: —Incomes of less than £260, Is; from £260 to £312 2s; from £312 to £364, 3s; from £361 to £520, 4s; £520 and over 5s in the £. The tax on income other than income from employment and on income from companies is levied on assessable income during the year ended June 30, 1931, or aiy other period accepted by the commissioner, provided the income is not less than £2OB. Companies and individuals ate required to deduct from any money payable to a person residing outside the

State sufficient to pay the tax due on any dividends or interest paid during 1930-1931. Bankers are of the opinion that the wages tax will seriously prejudice the proposed conversion loan and theatrical interests declare that the tax will cause more theatres to close. Several manufacturers contemplate moving their busi nesses to Victoria. The Sun, in a leader, says that the business community is stunned by Mr Lang’s wage tax proposals, and one of the first effects will be the immediate discharge of many thousands of domestic workers. Another will be an immediate contraction of retail trade owing to the terrific loss of spending power. This crushing new impost will further depress the people and also neutralise any benefit that is likely to accrue from the war debt moratorium. z MR BAVIN’S CRITICISM. SYDNEY, June 26. Mr T. R. Bavin, Leader of the Opposition, said that Mr Lang’s Bill involved a capital levy of 25 per cent. Most companies would have to find up to 10s 6d in the £, and many would wind up. The scheme amounted to economic revolution, and had been introduced deliberately to break down the plan evolved by the Premiers’ Conference. It was the basest ingratitude for Mr Lang to say that the banks had failed. The only bank that had failed was the State Bank, because the Government had a large amount of the bank’s money which it’ could not pay back. BILL PASSES ALL STAGES. SYDNEY, June 26. The Wage Tax Bill passed all its stages in the assembly, and was then sent to the Legislative Council. Lobby opinion is that if the council rejects the measure early next week the Premier will, in the event of the Governor refusing to give his assent, appeal to the British Government direct for its assent. Mr Lang claims to have a precedent for this course. Mr Lang’s colleagues point out that if the Bill does not become law it will be impossible to finance the public services at the end of June, and the police, school teachers, railway, tramway, and other Government employees will have to go without pay.

BUSINESS MEN PREDICT RUIN. SYDNEY, June 28. The principal topic of conversation in New South Wales is Mr Lang’s wage tax and almost the entire population is fervently hoping that the Legislative Council on Monday will throw out the measure at all costs. Business men predict that they will be completely rhiued and they declare that money which legitimately should be spread over private enterprise will be diverted to the Government. The northern miners are hotly opposing the wage tax. ’ FIRST READING IN COUNCIL. SYDNEY, June 27. The intention of the Ministry to dispose of the wage tax legislation in one day with a view to its proclamation on Monday was defeated in the Legislative Council, where a motion affirming urgency was defeated. The Council agreed to the first reading. The Premier stated that the new taxes were expected .to yield £16,000,000 during the next financial year. The Daily Telegraph says that if it comes to a party division the Government can count on only 20 votes in the Upper House. To complicate matters further it is believed from the tone of the manifesto issued by Mi Theodore and the Australian-Labour Party’s Provisional Executive that the section in the Council •who refused to sign the Lang plan pledge will assist the Nationalists in defeating the Bill. BILLS DUE IN LONDON. MELBOURNE, June 27. The Board of Directors of the Commonwealth Bank has completed arrangements for the immediate shipment to London of gold to the value of £5,000,000. This will be used to pay Treasury bills due on June 30.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/OW19310630.2.96

Bibliographic details
Ngā taipitopito pukapuka

Otago Witness, Issue 4033, 30 June 1931, Page 27

Word count
Tapeke kupu
1,211

POSITION IN AUSTRALIA. Otago Witness, Issue 4033, 30 June 1931, Page 27

POSITION IN AUSTRALIA. Otago Witness, Issue 4033, 30 June 1931, Page 27

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