TAX AND LEVY.

Press, Volume LXVIII, Issue 20490, 8 March 1932, Page 8

TAX AND LEVY.

INCREASE FORESHADOWED - BELIEF FOR CONSOLIDATB3K FUND. [FBOW OUB PABMAMBNTART-RWWRWB-] WELLINGTON March 7. A readjustment of unemployment expenditure, which was foreshadowed, in the Speech ifrom the Throne at the ing of the session, is understood to be engaging th? attention of the Goverft-v ment at the present time, land a plan is believed to be in hand for relieving the Consolidated Fund altogether of its responsibility for relief purposes. Several questions of vital importance affecting the budgetary situation which camo within the pcope of the Committee ®f Economists and which are being withheld from publication until the Minister for Finance presents his special review of the financial position, have been receiving the close attention of Cabinet for the past week. Lights have burned till a very late hour in the Prime Minister's room, and even Sunday was not regarded by the Ministry as a holiday, and a late sitting this evening left Cabinet with still a great deal to do before the House resumes tomorrow. Finances Hampered. • It is'flo secret that the unemployment subsidy has created a drag on the Consolidated Fund. With the ley of £1 and the wage tax o£ 3d in the £, a yield of £1,300,000 is provided to which the Consolidated Fund adds a fulrther £1,300,000, bringing the - total • unemployment fund to £2,600,000. It is now suggested that the Consolidated sFund should be relieved altogether of the subsidy and the unemployment fund be given a separate identity altogether. If this idea is pursued tb practical application it Will mea* that the levy and wage tax will have to find the whole of the fund of somothing like £3,000,000, because the, increasing demands upon relief organisations and the quickly diminishing reserves of Hospital Boards indicate that more and not less money will be required for relief this winter. Assuming that £3,000,000 is required, and the flat levy remains' at £l, the wage tax will have to be trebled to bridge the gap. The present wage tax of 3d yields £900,000, and the. levy about £400,000, sd a further 6d in the £, yielding £1,800,000, would require to be added to bring the fund up to the £3,000,000 mark. - The. Government ha§ not yst. uttered its final word on its policy. ' • Curtailment of' Public Works. The severe curtailment of public works will possibly mean less work and more relief sustenance for distressed unemployed during the winter, though the lit. Hon. J. G. Coates still hopes to absorb large numbers on preparing land for settlement. If work cannot be found for all the Minister will endeavour to see that food and, shelter are prpvided. This might prove less costly than many of the works that have been going on for the past year or two"' simply to keep relief ; workers moving and make for ia slightly reduced, expenditure from-the-fund, -i . , - •••■ -■»