THE ADMISSIONS OF FORMER PRIME MINISTER McMAHON

In a feature article in "The Herald'; Melbourne, of September 6th, former Liberal Prime Minister and Federal Treasurer W. McMahon reveals that he has the capacity to support different policies at the same time. Having said that "In my opinion, the main thrust and objectives of both the prologue to the Budget in May and the August Budget are correct."

Mr. McMahon then went on to urge the stimulation of consumption by tax reductions. He said, "With the advantage of long experience I would have reduced personal income tax by at least 7.5 percent and would also have reduced sales tax on a limited number of items in the consumer price index. Both of these measures would have been taken to stimulate consumption and investment expenditure and to offset the fairly large rise expected in the December quarter consumer price index."
Mr. McMahon also says "I would not have worried about a budget deficit of $3,75O million, provided the extra amount was used to stimulate consumption, investment and production in the private sector of the economy."

While much of the rest of Mr. McMahon's article contains the type of self-contradictory nonsense, which helped to destroy his Government in 1972, we ask readers to make use of the admission by a former Federal Treasurer that consumption can be stimulated quite easily by a reduction in taxation. If the Treasury- Lynch-Fraser strategy is persevered with, the prevailing climate of growing gloom is going to continue. And the December C.P.I. figures will prove beyond all argument that in spite of wage restraints, business bankruptcies, increasing discounts by desperate retailers, and the indirect subsidies provided by primary producers steadily being forced to accept a lower standard of living, inflation is not being reversed.

THE COMING MEDIBANK DISASTER

Early next month Australian wage earners are going to experience a further restriction of their purchasing power as they start making their compulsory contributions to Medibank. Those firms who pay Medibank contributions for their employees will eventually have to recover their increased financial costs in higher prices.
While claiming that he believes in freedom of choice, Prime Minister Fraser is imposing a socialist insurance scheme upon the Australian people. And like all socialist schemes, it must be compulsory.

Dr. Peter Richardson, the Federal Liberal Member for Tangey W.A., a former practicing gynecologist with extensive experience in the United States, Britain and Africa, predicts, "Medibank is heading for disaster." In an article in "The Australian" of September 6th, Dr. Richardson says that the disastrous future of Medibank "can be accurately predicted from the fate of the British and Canadian systems, whose small measure of success has been attained at very great financial, social and medical cost to the countries concerned.

If the Fraser Government were genuinely anti-Socialist, at least taxpayers would be given the right to opt out of any national insurance scheme and to make their own arrangements concerning their health. Perhaps some of Dr. Richardson's colleagues will heed his critical examination of Medibank.

THE WOMEN OF IRELAND

Last week we reported on the inspiring peace marches by Irish women. The woman who set the peace movement in motion, Mrs. Betty Williams, the 32 year old mother of two children told a journalist after further mass peace marches last week end: "We are not going to stop this overnight. The peace movement has been going for only four weeks; the violence has been with us for seven years. But don't you be the cynical journalist. We are going to win eventually."

Surely the spirit of the Irish women can prove infectious? They have a vital role to play in salvaging what is left of Civilisation.

THE MOST CRITICAL WEEKEND IN LEAGUE HIST0RY!

THE NEW TIMES DINNER

CAN AUSTRALIA BE DEFENDED?

CAN THE LEAGUE MEET THE CHALLENGE?

BRIEF COMMENTS

As the rural crisis deepens, with some desperately suggesting that the drought in Southern Australia might be creating shortages and higher prices(!), the Federal Country Party are reviving that old hardy, a Rural Bank. For years the Federal Country Party paid lip service to the necessity for a Rural Bank. Mr. Ralph Hunt, currently Minister for Health, made a speech on the subject before becoming a Cabinet Minister. Sensing the wrath of the electors before the 1972 Federal Elections, the Federal Country Party attempted once again to revive the Rural Bank project, but the Liberal Party would have none of it. The truth is that long-term, low interest credit could readily be made available to primary producers through present Commonwealth banking institutions. All that is required is a policy directive from the Government. Much more pressure will be required on the Fraser Government before that happens. In the meantime thousands of good Australians are walking off their properties.

"It is nearly one year and a half since the economy of the United States recovered. But, personal consumption has been stagnant, unemployment has increased, and private investment has not picked up. Both the Republicans and the Democrats have completed the nomination of their presidential candidates. Economic problems will be among their major campaign issues.
Believe it or not, the foregoing is a serious comment by a correspondent describing the American scene for the readers of "China Post", September 3rd. While the American Presidential candidate's debate how they are going to have increased economic growth without more inflation, Mr. Fraser, Mr. Lynch and their Treasury "experts" insist that the American anti-inflation strategy has been "successful".

Speaking in Brisbane last weekend Federal Treasurer Lynch said that Australians were overtaxed. But like a good party politician, he blamed the Labor Government for high taxes. Of course the Whitlam Government increased taxes. But does Mr. Lynch really expect Australians to believe that heavy taxation only started with Labor? Now that Mr. Lynch admits taxation is too high, will he please move to ease the burden, starting preferably with the highly inflationary Sales Tax? He makes much of tax indexation, but no move has been made to index Sales Tax, which even Mr. Lynch says will provide $l,700 million for the Commonwealth over the current financial year.