Govt. Planning Discussed; Capital Gains Assurances

Press, Volume CVI, Issue 31110, 13 July 1966, Page 3

Govt. Planning Discussed; Capital Gains Assurances

(New Zealand Press .Association* WELLINGTON, July 12. ’ Government planning was a recurring theme in Parliament tonight, and later both the Government and Opposition guaranteed not to introduce capital gains tax.

Mr R. J. Tizard (Opp., Pakuranga), speaking in the Department of Statistics estimates, said Government planning “has been going round and round like a weathervane in a whirlwind.”

Mr Tizard said the Department of Statistics was about 20 economists short, or about two-thirds short in senior staff. Qualified economists on which the Government must depend for advice simply were not available.

But Mr J. R. Harrison (Govt., Hawke’s Bay) said it was important to realise that considerable planning was going on, and gave examples.

Mr M. A. Connelly (Opp.. Riccarton) said the Government had failed to take the opportunity of gaining the voluntary co-operation of all sections of the community in planning for the future. Mr Connelly said the Government had also failed to secure the co-operation of the farmers in planning their future needs. The Government had provided £2 million less in the estimates for farming development than had been provided previously. It had been pointed out to the Government that it was trying to run the farm workers’ superannuation scheme “on the cheap.” Only about 1 per cent of the farm labour force had joined the scheme, when in fact the proper management of the scheme would have induced more labour to the farms, he said.

Mr Connelly said that the Government had asked the private sector to play its part in the development, of the country, but the Government had not been prepared to do the same. Targets Set The Minister of Agriculture (Mr Taiboys) said the Government had set up the Agriculture Development Conference for the sole purpose of

setting targets which must be met. For the first time in the history of New Zealand representatives of all sectors of the community were brought together to discuss development needs. Mr Taiboys said it was sad that the Federation of Labour decided not to attend this body. Opposition voice: “Why didn’t you invite them to sit on the policy committee." Mr Taiboys said the Government had accepted the proposal of Federated Farmers. who wanted to run their own development, scheme. They did not want to have some super scheme imposed by the Government. “They asked for the opportunity to run their own show. This they are doing very well,” he said.

“The policy followed by this Government all the way along the line has been to present new incentives to the farming community. 1 would suggest that the country knows and the farmer knows that today we are producing more than ever before.” The Prime Minister outlined the work done by Cabinet committees, and gave the over-all picture of salient points of Government spend-

ing and of its plans for devel-] opment. Referring to previous Oppo- i sition speakers' claims about the Government’s muddled thinking over the economy, Mr A. J. Faulkner (Opp., Roskill) asked whether there were sufficient advisers in the Treasury to keep the Government out of trouble.

The Parliamentary Undersecretary to the Minister of Finance (Mr Muldoon) said: “He is carrying on the parrot cry of muddlement and mess. Obviously this is the line laid down by the Labour Party for this session. But their remedies are conspicuously absent.”

Asking how the Labour Party would pay for its policy if it became the Government. Mr Muldoon wud: “We have very good reason to believe that the Labour Party’s senior party—the Federation of Labour—favours a capital gains tax.”

A capital gains tax would mean death duties every year whether people were dead or not. “If the senior partner favours it, the junior partner will do it.” he said.

The senior Opposition Whip, Mr H. L. J. May (Porirua) said: “At the appropriate time we will be telling the Government and the people what we will be doing. The Labour Partj’ has already, from time to time, put out aspects of our policy. . . Mr Muldoon: They haven’t said how they will pay for it though. Capital Gains Tax

Replying to an Opposition questioner, Mr L. F. Sloane (Opp., Hobson) said: “We will not introduce a capital gains tax on the farming community next year. I am prepared, as a backbencher, to say that we won’t do it.” The Minister of Forests (Mr Gerard) said the Government had full plane for lands and forests development, but to carry them out fully, it would probably be necessary i to borrow. Housing Council Mr W. A. Fox (Opp., Miramar) asked the Government why the National Housing Council had not been called since 1960 until this year. He said that this contradicted the Government’s policy of planning and reaching targets.

He said the Government had tried to get the National Housing Council to reduce

the target for house building: to 18,000 a year but the coun-1 cil had rejected it. The Minister of Housing] (Mr Rae) denied Mr Fox's claims but agreed that the lending for new houses had fallen and lending for existing houses had increased. Mr Rae said the meeting of, the Nat'onal Housing Council had been well timed and that] the five-year plan for housing i development was the right period to look ahead. The only area of New Zealand that had any real cause for complaint was Wellington and even there the housing situation had improved drastically. he said. “Some of the ghosts of the National Party must be shuddering in their graves to-| night,” said the Leader of i the Opposition (Mr Kirk). National members were now upholding planning, while a few years ago they referred to “wicked socialist planners.” Planning Unit

Mr Harrison and other Government members had talked about the Research Planning Unit to be set up in the Treasury, yet the Public Expenditure Committee had been told the unit could not be adequately staffed by the statistics department, Mr Kirk said.

He asked whether the unit was to replace the monetary and Economic Council, as its reports had become an embarrassment to Government.

“We’re going to have both,” interjected Mr Lake.

Then the Government would have both, and pay attention to neither, said Mr Kirk. The Parliamentary Undersecretary to the Minister of Industries and Commerce (Mr Adams-Schneider) said the Government had accepted the vast bulk of the recommendations of the Monetary and Economic Council—except the ones recommending increases in direct and indirect taxation.

The Prime Minister said: “The National Party Government will not introduce a capital gains tax. Can I ask the same categorical question from the other side of the House?"

Mr N. V. Douglas (Opp., Auckland Central) gave an assurance that the Labour Party was not considering a capital gains tax. “It has not entered into Labour Party thinking,” he said. Replying, the Prime Minister said: “This has been a very worthwhile debate. This' House knows quite clearly] the position of the Labour j Party on capital gains tax.” I