Living Beyond Means

Sun (Auckland), Volume III, Issue 920, 13 March 1930, Page 11

Living Beyond Means

AUSTRALIA’S EXTRAVAGANCE Luxury Cut Only Way Out SCULL IN APPEALS FOR ECONOMY AUSTRALIA is rebuked, by the federal Auditor-General for her extravagance in mortgaging the future by living beyond her means. Luxury economy, he says, must be prae- | tised by the people. The Prime Minister, Mr. J. H. Scullin, at the opening of Parliament, appealed for the co-operation of the people to I solve the difficulties of the Commonwealth, which he emphasised as seriously embarrassing to progress.

United P.A.—By Telegraph—Copyright Reed. O.uO 1 a.m. CANBERRA, Today. The Federal Auditor-General, in his annual report, is particularly outspoken cn Australia’s extravagance. He says the people are living beyond their means and mortgaging the future, while strikes, lock-outs and the failure to perform a fair day’s work had necessarily added to the cost of production. He advised the people to curtail pleasures and luxuries —referring particularly to imported cars ana expensive apparel—to reduce the consumption of liquor and eliminate the mid-week horse and pony racing; and directed attention to the enormous sums spent in theatres and cinemas, a large percentage of which went out of the country. He finally deprecated the large amount of capital sunk in new companies of the mushroom and wild-cat variety, which gave a living to parasites the whole year round. The Prime Minister, Mr. J. H. Scullin, marked the resumption of the Federal Parliament’s session today by making an appeal to all sections of the community to co-operate in an effort to solve Australia’s difficulties. Mr. Scullin announced that the Government intended to take immediate Stringent measures to restore the trade balance of the country by decreasing imports and increasing exports. He suggested that Parliament might be fittingly converted into an economic conference to discuss the general position. Fundamentally, Australia is suffering from the effects of world-wide depression accentuated by over-borrow-ing, said the Prime Mkiister. If the referendum proposals to be submitted to the people this year were agreed to the Government would bring down a scheme of social insurance, including unemployment, covering the Commonwealth and the States, municipal and private employers and employees. HEAVY OVERSEAS’ DEBT In describing how imports had continued .to enter Australia on a large scale and how the volume of exports had declined, Mr. Scullin stated that for the six years to June 30, 1929 imports had exceeded exports by £42,000,000. In the same period the Government had to pay overseas for interest and services, £193,000,000. Thus, the net total of Australia’s overseas obligations amounted to £235,000,000 In the same period the overseas debt had increased £153,000,000. There was an adverse balance in that period of £73,000,000 after allowing for £9,000,000 received in Bawra dividends. The luosition must be faced frankly. Suggestions that reductions in wages were essential in order to bring about increased production could not pass unchallenged. Employment was the borometer of prosperity and production would be much increased if those now unemployed could be placed in •useful work. The Government had devoted much attention to the necessity for stimulating the export of primary products. Important discussions had taken place with representatives of the wool industry and the wheat-growers’ representatives and the Government was watching "with interest the policy laid down for the future welfare oi; those Industries. CHECK ON MIGRATION Mr. Scullin reviewed the loan position. He expressed satisfaction at

the success of the recent conversion loan. He went on to indicate the extent of the defence economies and the savings to be made by the curtailment of migration activities. By arrangement with the British Government assisted migration would be confined for the present to boys and domestics and to nominations involving the reunion of families. The migration of foreigners had been reduced by half the former quota. In addition to the measures already indicated the Prime Minister announced that it was intended to amend the Transport Workers Act, the Crimes Act, the Commonwealth Bank Act, the Navigation Act, the Copyright Act and the Industries Preservation Act to permit of contracts being entered into in regard to shipping freights. Legislation also would be introduced dealing with the cotton bounty, the shale oil bounty, wireless telegraphy, income tax and land tax. SUPER-TAX PROJECT HEAVY DUTIES FORECAST CHECK ON IMPORTS CANBERRA, Wednesday. Ministers decline to make a statement, but rumours are still persistent that drastic tariff action is contemplated, with the object of restricting imports. The suggestions are first a primage duty up to 3 per cent, on the entire schedule, which would produce about £4,000,000; secondly, a supertax of a much higher amount on a great many items, or the total prohibition of their importation. This, however, would raise much questioning as to what constituted luxury. The third proposal is a further tariff schedule either increasing the existing duties, or imposing new ones. The Western Australian members view the prospect of increased duties with alarm, as being detrimental to the progress of the western States, and it is hinted that if drastic action is attempted Western Australia will have to consider its relationship with the Commonwealth. It needs practically free trade for 10 years, to enable it to make progress with Its own resources.