THE ELECTION

Press, Volume LXXXII, Issue 24907, 21 June 1946, Page 6

THE ELECTION

DEMAND FOR TAX REDUCTION «RECOVERY RETARDED ” - The Press ’ Specia Service . WELLINGTON, June 20. The z eoming election was of very considerable importance to young men and women who were charged with the responsibility for the first time of deciding whether they wished to spend their lives V a socialistic state, or a state where they would Have full opportunity to own their own homes and establish themselves in life according to their individual capacity and energy, said Mr W. J. Sim, K.C., In his presidential address to the National Party conference to-day. ’ The country had elected to havy heavy pensions schemes, end with an ageing population, youth had to consider calmly the burdens it was expected to. carry. There could be no question of going into reverse on Social Security matters; but how <ua youth regard heavy general taxation, in many cases to meet avoidable expenditure and extravagance, which must also bear upon them in their own battle for independence and security? He suggested that they should examine carefully what class of government was the more likely to give them their chance, one which had shown an antagonism to the taxpayer, or one which placed its hope for the future in reasonable taxes. The National Party had incessantly demanded, upon the termination of hostilities, that taxation should be immediately reduced. The reply was tha the necessities of the post-war period, made high taxation imperative. They now found the Government with a large .admitted surplus ih hand, and the economic recovery of New Zealand been thus retarded by at least one year. “We are informed of a statement of the Minister of Finance in London, made with a smile, that his coming budget will win the election. Possibly the Minister will learn that New Zealanders are as shrewd as the next man, and appreciate that in every confidence trick the victim is permitted some gains. If the promised budget takes the shape we anticipate, we shall criticise it as politically dishonest for the reason that it is last year’s budget held up for election purposes in aiaregard of New Zealand’s welfare.

Encouragement of Enterprise “Leaders of the business world have shouted at the Government until they ®£ e hoarse that taxation is crushing the life out of businers and preventthe creation of further employment and the reduction of prices, but nothing happens. We regard substantially reduced taxation and the flow of trade as the key to most of our difficulties at the present moment.” To reduce taxation Was to encourage enterprise and the production of more goods in every direction. What' miner, sawmiller, timber worker, producer on the land, o: any other kind of worker, was going to strive in the national cause of more production, When increased effort only led to more taxation and working for the Treasury?