MINISTER'S VIEWS ON TAX RELIEF

Chronicle (Levin), 13 July 1946, Page 5

MINISTER'S VIEWS ON TAX RELIEF

1VE1JJXGTOX, July 12. To talk of ;i rcduction in tuxution to tiie extcnt of £35,(K)0,il(j() to £lu, 000,000 was simjily ridieulons and fantastic, -aid Llic Acting Alinistcr of Customs, i'axation could liavc been rcduccd last year, lic said, only at tlic cxpcnse of inrcascd borrowing. Xobody could suggcst that tlic Consolidated Fund was in i statc of high credit — the balance was mly £1,000,000, and thc expcnditure • witliin that fund was naturally increasing as social sorviccs expanded. It was true that in the earlv part of last year £37,000,000 was borrowcd for ..he War Expenses Account to pay sollicrs, pay for their food, and pay for naterials that were rcquired. At the end of the year there was a favourable lalanco and £27,000,000 was paid back. Was tliat imprudent? asked Mr. Nord.leyer. Shouid the gratuity moneys of 118,000,000 not have been paid? Tuxation for war jmrjioses last year was £51,000,000, but last year provision was made for redueed taxation by £7, 000, 000 by reductiug Gd in the £ from the national sccurity tax. Ro•eijits tliis year would be that much •css, and in addilion the family beneJlt and additional amounls to all beneiciarics were' conservativelv estimated at £12,000,000. Tliat was £19,000,000 accounted for, but above tliat various war debts had still to be met and the men in Japan had to be paid and the Navy, Air Force, and Interini Army had to be maintained. At one stage before the war flefence cost £2,000,000 a year, but Xew Zealand could never hope to get back to that. This year very considerable snms nuisl be provided for defence purposes alone.