Stimulus Given to Industry

Manawatu Times, Volume LIV, Issue 7280, 6 October 1933, Page 7

Stimulus Given to Industry

Australia Receives Budget in Happy Hood FURTHER TAXATION RELIEF POSSIBLE United Press Association—By Electric Telegraph—Copyright. Received Thursday, 9 p.m. SYDNEY, Sept. 5. A general feeling of optimism, with new life and spirit given to commerce and industry, was the consensus of opinion of business circles to-day as a result of tho Government's Budget. Company taxation is being reduced from 1/4.Sd to 1/* in the pound, which, it. is believed, will stimulate employment.

It is also reported that substantial reductions in interest rates by tho banks and insurance companies can be expected in tho next fow days. The Government is of the opinion that the Budget will provide a stimulus for higher revenues, and there may be still further relief from tax burdens before the year is out. Cuts in Tariffs and Primage MAXIMUM OF HALF THE ADVERSE EXCHANGE RATE Received Thursday, 10.30 p.m. CANBERRA, Oct. 5. The 'Minister for Customs (Mr. ■White), introducing tariff amendments an the House of Representatives, said the adjustments proposed would not expose Australian manufacturers to undue competition, because tho maximum deduction .from tho duties would be only half the adverse exchange rate. The successive increase of many duties in recent years, also the adverse exchange and the addition of primage duty, coupled with the reduction of wages, rents and interest charges, had Tesultod in many industries being over-protected. The Tariff Board, therefore, had attempted to rectify this position where practicable. Of tho total primago duty remissions, British goods would receive 66 per cent., other British countries 14 per cent., and foreign countries 20 per tent.

A new feature of the primage duty was preferential treatment for goods entitled to tho British preferential tariff. The Government had also decided that a tariff-adjustment formula should be applied where depreciated currencies gave foreign currencies an advantage over Australian industries. The Government would also accept tho Tariff Board's recommendation to adjust tho British preferential duties to meet tho increased protection afforded by the Australian exchange rate. The immediate effect would bo to reduce many existing duties by onequarter. “Best Prosperity Budget Yet” Received Thursday, 9.10 p.m. LONDON, Oct. 5. The Commonwealth Budget is the leading feature in most, morning newspapers and lengthy reports are displayed under triple and double-column headlines. The Telegraph’s top line reads: “Australia’s big gift to British trade”; while tho Express has as its headline: “Dramatic gesture for Empire trade.” The Express directs attention to some duties more than halved.

The Times says the Budget is the nearest approximation to a properity Budget yet soen anywhere since the beginning of the depression. The Daily Mail’s city editor says: '‘Australian loan-holders and British manufacturers will be pleased with Australia’s sound and cheering Budget. The tax-cutting remarkably demonstrates Australia’s great financial recovery. Thus, from one of the first to suffer from the economic blizzard, Australia is in the forefront of substantially reducing taxation, which is so desirable everywhere.” Tho Chronicle, emphasising that the Budget has firmed Australian stocks, congratulates Australia and Mr. Lyons. It recalls that Australia’s collapse heralded a crisis and hopes that tho Budget will herald a much more desirable phase. The Daily Telegraph say 3: ‘‘The Commonwealth Budget is tho most heartening for many years. The sharp advance in Australia’s export values has clearly induced Mr. Lyons to frame his proposals on optimistic lines.” , Financial Institution Announces Interest Reduction Received Thursday, 11.30 p.m. SYDNEY, Oct. 5. Tho Australian Mutual Provident Society announced to-night a reduction in interest to 41 per cent, to Australian borrowers. Increase of Deficit BRISBANE, Oct. 5. The Queensland defiicit is budgetttd as £1,848,402 for the current year, as compared with an actual deficit of £1,554,444 last year—in. the financial statement presented to Parliament by tho Premier and Treasurer. Hon. Forgan Smith.