BUDGET PROPOSALS

Waikato Times, Volume 125, Issue 20922, 29 September 1939, Page 5

BUDGET PROPOSALS

SUPPORT FOR GOVERNMENT DEBATE IN THE COMMONS BURDEN MUST BE BORNE (Official wireless) (Received Sept. 29, 11 a.m.) RUGBY, Sept. 28 In the House oi Commons, in the debate on the Budget resolutions, Mr F. W. Pethick-Lawrence (Labour) said the Chancellor was right in deciding to start immediately with heavy new taxation. He had imposed unprecedented burdens, but, “unpalatable as it may be, I am forced to the conclusion that Sir John Simon’s prospective taxation for 1940-41, of which he spoke yesterday, cannot be his last word. The new direct taxes are recognised as necessary and the indirect taxes must and will be borne with fortitude.” The lowering of the bank rate to three per cent was warmly welcomed by Mr Pethick-Lawrence, who, however, urged the early restoration of the pre-war rate of two per cent. He showed concern that in approaching the problem of war borrowing the Chancellor should see that the Treasury took appropriate) steps to keep down interest rates. This points was taken up by a Liberal speaker, Mr Graham White, who also urged the importance of maintaining low interest rates. Mobilising Nation’s Resources Sir J. S. Wardlaw-Milne (Conservative) accepted the Budget with deep resignation, saying that the whole country is anxious to help the Government in every way. Sir John Schuster (National Liberal) spoke of the Government’s responsibility to have a well-prepared policy for mobilising the resources of the nation in such a way as to keep them fully employed, by absorbing any left idle as a result of the drastic curtailment of private activities, which the Budget proposals would effect. Several speakers dwelt on the importance of economy.