Federal Cabinet’s Dilemma

Sun (Auckland), Volume IV, Issue 1080, 18 September 1930, Page 9

Federal Cabinet’s Dilemma

MR. SCULLIN ABROAD PINES FOR THE JOB

HIGHER taxation yet, as well as rigid economies, is foreshadowed in Australia for the current financial year. The Federal Cabinet Sub-Committee has explored the whole economic field and finds this action necessary to balance the Bridget. The Prime Minister, Mr. J. H. Scullin, interviewed at Naples on his way to England, said he was anxious to return and grapple with the problems facing the Commonwealth.

United P.A.—By Telegraph—Copyright Reed. 11.30 a.m. MELBOURNE, Today No date is yet fixed tor the opening ot the Federal Parliament. A Federal Cabinet sub-committee has explored the whole field so far as economies and taxation are concerned and the Acting-Treasurer, Mr. J. A. Lyons, stated that new taxation, as well as economies in expenditure, will be necessary to balance the Budget this financial year. “So many exemptions have been granted from the operation of the sales-tax that it is doubtful whether it will yield anything like the £5,000,000 estimated in the Budget,” said the Act-ing-Minister of Markets, Mr. M. F. Forde. Buyers are still evincing their customary wariness on the Stock Exchanges in Sydney and Melbourne, and holders have no alternative but to accept lower prices. Leading industrial securities are still falling, and also bank shares. Commonwealth loans, on the other hand, are displaying increased activity. The monthly summary of Australian conditions issued by the National Bank of Australasia point out that under the system of wage fixation here it has not yet been possible to reduce production costs to an extent commensurate with the general decline in the national well-being. After days of strenuous argument, the Full Court of the Arbitration Court decided to hear applications by the Railway Commissioners of Victoria, New South Wales, South Australia and Tasmania for an order setting aside the awards of the various railway unions.