London, June 1, 'The withdrawal of the proposed National Defence Contribution—the graduated tax on growth of profits—Which was. the outstanding' feature of his Budget statement as Chan-collar of the Exchequer, was announced by the Prime Minister, Mr. Neville Chamberlain, in winding up the debate on the second reading of the Finance Bill in the House of Commons to-day.
Following the announcement, the House, by $40 votes to 149, defeated Labour motion for the' rejection of the Bill, which was then read a second time.
'After a general defence of his Budget proposals, the Prime Minister turned to part three of the Bill, against which criticism' had been directed chiefly from the ranks of the Government's own supporters.
'He had to admit, he said, that there appeared to be genuine alarm as a result of the proposed "new tax, which had held' up business to an extent which was very undesirable, When the bill was in committee, Mr, Chamberlain proceeded, the Chancellor would not proceed with part three providing for the Nationa Defence contribution and, in the meantime, he would work out other proposals for a simpler tax upon the profits of industry, Such a tax Would be designed to produce no less than £25,000,000 in a full year.
"Not Pig-Hendea"
He said he was told that the tional Defence Contribution scheme was expected to give a great deal of trouble, to cost a great deal of money and to detract people from attending their ordinary routine business.
On the other hand, he was told industry wished it to be understood that they did not challenge the propriety of finding the amount he Wanted from profits, "My record," Mr. Chamberlain continued, "does not include pig headed obstinacy. Provided I could get the Important thing, I never Doxgled over a particular way of achieving it, Nor have T ever allowed amour propre to prevent my taking a common-sense attitude "It seems to me," he declared, should not only be something less than prudent but T should be stupid if 1 were to persist in the particular method of getting what T- want Which already is not going to give what I want—it I can get it by simpler methods and in larger amount'
That was what, after consultation with the Chancellor of the Exchequer, he proposed to do, added Mr, Cham= Berlain, He would not anticipate what the proposals of the Chancellor would be. They would require a new financial resolution, and the frst intimation the House would have of the nature of the mew proposals would be when: the Chancellor tabled 1 resolution, which would be on the earliest possible occasion—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.