“Grim—But Just!”

Sun (Auckland), Volume IV, Issue 977, 21 May 1930, Page 11

“Grim —But Just!”

SNOWDEN’S BUDGET ASSAILED Heavy Burden on Industry FINANCE BILL OPPOSED IN COMMONS THE, British Labour Government’s Budget was attacked in . the House of Commons on the ground that the additional heavy taxation imposed upon industry had placed Great Britain at a disadvantage with competitor countries. Defenders of the Budget said the heavy impositions were largely the aftermath of the war. One critic said; “It is a grim Budget, but not unjust.”

United P.A.—By Telegraph—Copyright Reed. 12.10 p.m. RUGBY, Tuesday.

In the House of Commons Sir Robert Horne, (Conservative) moved the rejection of a motion for the second reading of the Finance Bill.

He said that owing to the Budget’s heavy additional taxation, industry was faced with increased difficulties in competing successfully in the. world’s markets.

In social services this country had gone twice as far as any other, and by increasing that expenditure for which reVenue could only come from already overburdened industry, the existence of social services themselves were threatened.

Sir Herbert Samuel (Liberal), in supporting the Bill recalled that the burden of rate relief left by the late Government Federation Bill was very heavy, and had been estimated at £24,000,000 by Mr. Neville Chamberlain.

The present Chancellor was determined in this way to meet his obligations. Perhaps he was doing more. If there was the smallest improvement in trade the Budget was likely to yield a surplus next year, and perhaps a considerable surplus the year after that. It was a tribute to British democracy that the Labour Government had not yielded to the temptation to put aside its obligations regarding debts.

It was a grim Budget, but he thought it was not unjust.

Mr. F. W. Pethick-Lawrenee, Financial Secretary to the Treasury*, said the large size of the Budget was mainly due to the aftermath of the war.

Several questions on employment were addressed to the Lord Privy Seal, Mr. J. H. Thomas, who said as a result of his discussion with representatives of associations of motor manufacturers and traders, he was confident that a real co-operative effort was being made by industry to develop trade. He added it had been decided that industry should take steps to organise a representative exhibit of British motor products at the British. Empire Trade Exhibition at Buenos Aires next year.

He stated the Government of the Union of South Africa had placed in England an order for 46,000 tons of steel rails ana various permanent heavy accessories Asked if, in vievr of the desirability of encouraging investments in British industries, by British investors, he would reconsider the reparations loan under the Young Plan, the Chancellor of the Exchequer, Mr. Philip Snowden, said the amount of the reparations loan to be issued in London would be limited to the British Empire. The share of the gross proceeds of the loan receipts of this country would he used to reduce the national debt. In those circumstances no question arose of interference with investments in industry.