THE FAMILY ALLOWANCE
PROBLEM OF FINANCE
MR W. SULLIVAN'S ADDRESS
'"We are all for the universal family allowance, but 1 want to .say to the Government that once Ave provide lor these benefits and once the people participate in tbem theiv no matter what Government is in power we must work and strive to see that those benefits are retained" * declared Mr W. Sullivan (National
Bay of Plenty), during his speech on the Social Security Amendment Bill in the House of Representatives. "What i& the best method to adopt to do that?" he continued. "It is to get to work and build up our primary industries so that we can set the pace for the high standard of our national living and help to meet our obligations. Once we have firmly established our basic our secondary industries will bring employment around and will pay out wages which will., of course, be taxable, thus providing the revenue that is required. It is the duty of every one to pull his weight and help to provide the funds necessary to keep social security benefits alive.. No one desires to see any recipient of benefits deprived of what he has been enjoying. We want to see those benefits and privileges firmly established, and to that "fend the Opposition would build up basic industries, surrounded by justified secondary which would not only provide the revenue needed to keep the funds solvent but would go a long way towards providing a greater number of people with employment." The Opposition had supported the policy ot' family benefits all plong and that was part of the National Party's election policy he said. There was only one member in the House who had constantly advocated the. payment of universal family and that was the member for* Temuka, Mr Acland. "I want to say," continued Mr Sullivan, "that I believe the Government has taken its cue from that member. It has investigated this • situation. It knew that members of tjie Opposition were seriously considering the subject. It has 'we. will have to stump their wicket if we possibly can.' In other words it has set out to forestall the Opposition on the question of universal family benefits. In granting universal family I believe we are going to do a great service to our coun.
try i? and it is going to assist us to get the population that we need so badly. After all, I think it is to say that the large families' are more or less among the poorer sections oi our people, and if we can help those people in their jiee.l to look after their children and, to give them a start in life that they are so well entitled to, we are going to do a good duty indeed. In that respect I commend the proposals that have been brought forward." A Labour member: What about children?
Mr Sullivan: The hon. member can question me about children. My wife had seven of them. If be can put. up a record like I have no complaints to make. Mr Sullivan said the best way to get population was to get our own and it was for Parliament to give the fathers and the. mothers security—good conditions under which to live, and reasoanable incomes. Then a desperate effort should be made to reduce the cost of living. Mr Sullivan said he believed that the Government had been forced because of the inflationary policy it bad adopted since coming into olfi,ce) to increase the benelits to give those with larger families and on
the lower scale of wages sufficient to enable them to meet their obligations and live decently. The present he estimated, were costing £23 j ;>91 t 0(H). As far as the cost of the new scheme was con- | cerned } he hoped that the Minister of Finance would give a statement in £n open and understanding way, Mr Sullivan said lie thought it was fairly safe to say that the total benefits would cost New Zealand some, tiling like iMIHKMHXM), of which £18(HHM)00 was .still to be found and lie wondered from where ;t was coining. It could be taken as cerhe said, that the national security tax would remain. Mr Sullivan said that the Minister of Finance had previously stated # Alien
speaking of the proposed legislation that no further taxation could come from the top. After analysing the position to see where the additional revenue was. to come from > Mr Sullivan said he thought one could say without any conpunction at all that it was going to come from the middle-class incomes, from those with incomes of between £600 and £2000 a year. Taxation revenue including war taxation, for 194-1-45 was about £133 000 000. About £549 ' 'f 000,1)00 was needed for domestic government, and that left the Government withi something like £79 - 000,000 which was the amount in excess of that required for peacetime. If the scheme was to cost an additional £20,000,000 that still left the Minister with something like £59,000,000 to play with. If the Minister stated later where the ex. tra revenue was to come from Mr Sullivan said he hoped he would likewise give some indication of what he was going to do with the balance of £59 000,000. It was amazing to realise the increased amount of production that had been taken away by taxation increases over recent years. In 1939, 25 per cent, ol' outproduction was taken away from the producers by way of taxation; in 1943 - 51 per and in 1944, 57.0 per cent. The taxation <>>' industry c 1 nd th 3 general public was becoming increasingly heavy and he said that the Minister 'would have to take the first opportunity of revising the present scale of taxation.
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Bay of Plenty Beacon, Volume 9, Issue 19, 30 October 1945, Page 6
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962THE FAMILY ALLOWANCE Bay of Plenty Beacon, Volume 9, Issue 19, 30 October 1945, Page 6
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