AUSTRALIA MUST FACE DEFICIT OF £9,000,000

Sun (Auckland), Volume IV, Issue 1066, 2 September 1930, Page 9

AUSTRALIA MUST FACE DEFICIT OF £9,000,000

BLACK BUDGET OUTLOOK SPECIAL SESSION LIKELY United P.A.—By Telegraph—Copyright Reed. 11.5 a.m. CANBERRA, Today. The Federal revenue for July and, August shows an alarming decrease, which, if continued for the remainder o£ the financial year, would mean a Budget deficit of £9,000,000. The Federal Cabinet will hold a meeting to consider the situation and it is expected that a special session of the Federal Parliament will be convened for early in October to deal with the finances. In Federal circles a wages reduction is regarded as inevitable. It, is stated that the pledge given by the Government at the Melbourne conference to balance the Budget may lead to the resignation of Mr. J. A. Beasley, Assistant Minister of Labour and Industry, from the Ministry, as the Australian labour and industrial section of the Labour Party has called upon Federal Ministers to repudiate the conference understanding. WAGE-CUTS RESENTED UNIONISTS PROTEST SIR OTTO SUGGESTS PARLEY (Received 1.40 p.m.) MELBOURNE, Today. Sir Otto Niemeyer arid Mr. Kershaw, of the Bank of England, had an interview with the president of the Australian Council of Trade Unions, Mr. Duggan, and other representatives, with the object, of discussing the general effects of the financial proposals and the steps it is proposed to take to meet Australia's obligations. The unionists said they resented strongly the attacks that are being made on the standards of living of the workers, and they urged a reduction in interest, both on deposits and advances, together with a reduction in the interests on external loans and rates of exchange, which would bring about a financial saving without adversely affecting the wage standards. Sir Otto Niemeyer suggested a conference between representatives of the unions and the employers with a view to agreeing upon a percentage reduction in wages and prices. Sir Otto and Mr. Kershaw leave Sydney on Thursday for New Zealand. SACK. THE ALTERNATIVE MEN REFUSE RATIONING Reed. 1.5 p.m. HOBART, Today. The Railways Commissioner met representatives of the Railway Unions at Launceston for discussion on the rationing of work. The men stated they were advised by their executive not to agree to rationing. The commissioner replied that no course remained for him hut to proceed immediately with a scheme of retrenchment in all branches.