Australia Sits Up

Sun (Auckland), Volume IV, Issue 1070, 6 September 1930, Page 9

Australia Sits Up

AXE FALLS UPON SALARIES

Cabinet’s Clean Sweep PENSIONS AND BIG INCOMES HIT AFTER sitting iate into the night, the Australian Federal Cabinet decided yesterday to reduce salaries, including their own, to tax interest and to review the situation of maternity and pensions payments and of luxury imports. Higher incomes’ also will be further taxed. Mr. Scullin’s undertaking to balance the Commonwealth Budget will be carried out, and, in the words of the ActingPrime Minister, the country’s obligations in all directions will be honoured.

United P.A.—By Telegraph—Copyright Reed. 10.25 a.m. MELBOURNE, Today. The Federal Parliament will be called together in October to enact at a special economy session legislation to deal with unemployment, to impose a special interest-tax, to reduce Ministerial, Parliamentary and public servants’ salaries, to readjust the maternity allowance and pensions payments, further to tax imported luxuries, and to readjust taxation on higher incomes.

The Federal Cabinet came to these decisions last evening and at the. same time decided t<> honour the pledge given by

the Prime Minister, Mr. J. H. Scullin, to balance the Budget. The Acting* Prime Minister, Mr. J. E. Fenton, declared the Gov-

ernment will uphold every obliga- Mr tion to the people

of this country and to its creditors. Cabinet has adjourned until today, when steps will be taken to frame a sessional programme and to work out details of the proposed legislation. Most of yesterday’s long sitting was spent in debating the suggestion that a special tax be imposed on interest. It is believed that Mr. J. Lyons, aet-ing-Treasurer, submitted proposals for a reduction in Ministerial, Parliamentary and public service salaries, ranging from 15 per cent, on higher salaries to 10 per cent, on lower salaries. The Minister also proposed increased taxation on higher private incomes, and a tax on interest, to be applicable to Commonwealth bonds. Sir Robert Gibson, chairman of the Commonwealth Bank, attended the meeting at the urgent request of the Acting-Prime Minister, Mr. J. E. Fenton, in order to explain the serious position of the finances, and to convince Mr. Fenton's colleagues of the absolute need for immediate drastic action to stop the drift. He had a three-hours’ consultation

with the Federal Ministers, to whom ho explained the financial position, and suggested plans for financing the State and Federal Governments over a long period. The Federal Ministers stated that although the financial situation, flue to rapidly declining revenues, was acute, the Government had the matter well in hand. They asserted that rumours of a split in the Ministry were greatly exaggerated. Mr. A. E. Green, who was reported as flying across Australia to attend the Cabinet, was not present. The Assistant Minister of Customs, Mr. F. M. Forde, also was absent. RELEASED FROM AWARDS