Australia Staggered

Sun (Auckland), Volume IV, Issue 1021, 11 July 1930, Page 11

Australia Staggered

TAXATION PLAN HITS TRADE

Stock Exchange Reactions

£30,000,000 NEEDED FOR OVERSEAS

United P.A.—By Telegraph Copyright

lieeeived 10.55 a.m. SYDNEY, Today. THE Federal Government's new taxation and revenue duties have dealt a staggering blow to trade and industry. Leaders of commerce all declare that the new imposts must be passed on to the public, further increasing the cost of living and intensifying unemployment.

The stock markets in every’ State fell yesterday, and showed an unfavourable reaction. The capital values of some stocks sank to new low levels. In the House of Representatives at Canberra, the Federal Prime Minister and Treasurer, Mr. J. H. Scullin, announces that the Loan Council must secure overseas not less than £30,000,000 in the near future in order to clear up the London position. Failure to make such provisions will lead to an embarrassing position. Further, it is not proposed to extinguish the accumulated deficit of £6,500,000 by taxation. It will be covered by means of a loan appropriation of £7,000,000. SLUMP IN SYDNEY On the Sydney Stock Exchange, sellers lowered their limits drastically in an endeavour to realise. The anxiety to sell appeared to be genuine. Buyers, however, wanted big concessions. For example, brewery shares fell by from 6d to Is 9d. Trading and industrial shares receded most heavily and touched the lowest levels for many years. Bank of New South Wales shares fell 5s to £37 15s and Commercial Bank of Sydney 4s to £l9 15s. The market for gilt-edged stocks was extremely quiet, sellers having to face small losses. Motion picture distributors declare that the taxation of their industry has reached the breaking point. The extra penny a foot on films means an additional £112,000 a year. A leading accountant says the direct and indirect Federal taxation for the current year amounts to more than £59,000,000. The Minister of Customs, Mr. J. E. Fenton, says the new customs and

excise duties will not affect any goods the produce ov manufacture of New Zealand. An agitation has been begun in Adelaide and Brisbane for a united business men’s organisation to frustrate the Federal Government’s attempt to enforce the taxation measures. which, according to one manufacturer, arc likely to put half the wholesale firms in Australia out of business. SENATE’S OPPOSITION It is expected Mr. Scullin’s new Budget proposals will meet with strong opposition in the Federal Senate, especially the company tax and sales tax. Replying to criticism of lus proposals, the Prime Minister said. “Show me an alternative.” Dispatches from London state that the “Financial Times” is greatly hopeful that nothing will occur in the industrial sphere in Australia to derange the revenue yield. Appreciation of the heavy burden of taxation will find quick expression in London. A loan is necessary to stabilise the position and it may be regarded under the present conditions as not extravagance, but as necessary to give the Commonwealth a financial buttress for the essential fructification of its plans. The “Daily News” and “Chronicle” confines its remarks to comment upon the value of protection. In fact, it says, Australia is reduced to a desperate expedient such as a sales tax after years of enei getically protecting herself.

SET-BACK TO SCULLIN

Reed. 10.55 a.m. CANBERRA, Today. The Federal Government suffered a setback when the Senate, against the wishes of the Ministry, referred to a Select Committee a Bill to create a Central Reserve Bank.