MORE RELIEF NEEDED

Chronicle (Levin), 27 September 1946, Page 7

MORE RELIEF NEEDED

-Press Assfciation

Opposition's Argument

By Telegraph-

WELLINGTON, Sept. 26. A resolution exempting from saies tax, as from tomorrow, a substantial range of artieles additional to those recently exempted, was moved by liou. W. Nash when the Ilouse of Bepresentatlves resumed tonight. Mr. Nash said the schedule eovcred artieles not eovered by the saies tax exemptions Introduced earlier in Ihe session. The maia feature of the extension of the schedule of exemptions was to elarify exemptions of all building niaterials used in the construetion of a house, maiiilv plumbing and eleetrieal items and rubber flooring. It also dealt with a wide range of artieles used in the manufaeture of weariug apparel and furniture. To obviate a large number of elaims whieh would be made for adjustments, it had been found neeessary to exempt specifieally materials 011 which the saies tax had forinerlv been paid and wliieh were included in others wliieh were now free from tax. Such exemptions eovered artieles like buttons, tapes, threads and sewing eottons. The Minister said that to eloar up anv doubts as to whether all elasses of timber were ineluded under the original exemptions — and it had been sug- 1 gested dressed timber was not — it had not been ineluded. Conerete iittings and installations in houses were also ■ npw eovered as wero metahvork windows and glazed and uuglazou leadlights and builders' and eabinetmakers' hardware. The whole idea of the new resolutions was to eover all building materials not 1 ennm er at ed prev ious 1 y. The Minister said that in response to rCpresentations from farming organisatious, ehemieals, drugs and all pTeparations applied to the making up of preseriptions to orders of lieeused veterinary surgeons and practitioncrs, had been included. Mr. Nash said that if further niinor adjustments eoneerning artieles used in tlie building of homes were found neeessary, thev eould be exempted bv order-in-eouncil. Mr. A. H. Sutherland (Hauraki): tou have forgotten about eroekcry. . Mr. Nash: That is not furniture.

Mr. Sutherland: But it is very usefui. Opposition Members: What about frigidaires and washing machines? Mr. Nash: I don't know of anybody wearing a frigidaire. Mr. Broadfoot: Some are wearing a cold look. There were some good-humoured ex ehanges between Mr. Nash and Opposition Members as to whether aoid drops were now exempt. Mr. Nash sun. those Members who were interesteil should call upon him in his room and he would be delighted to ofl'er them some aeid drops. , Mr. W. J. Polson said that while any relief from saies tax was welcomed, tln Minister 's schedule was less generou. than might appear at first glanee Many important household artiele such as frigidaires, washing maehine and other labour saving deviees, wer. not exempt. If the Minister would uo only exempt these artieles from the ta but also permit tlieir importation, h would be doing a real serviec to tio country. Mr. Polson also advocated a reductioi of tax on tobacco. Mr. Polson said the nearer the elfie tion approached the more liberal the Minister became. It was a sort iT deathbed repentance on his part. Mr. C. M. Bowden (Wellington West; said it was apparently intended to exempt eabinetmakers' hardware bu1 the lists of items under that. heading was incomplete. lle suggested that theolleetor of the saies tax might be given ppwer to exempt other items used in the manufaeture of furniture. Tio saies tax should also be rcmovod from artieles in dailv use such as croekery, glasses, sugar and tea. The saies tax on motor vehieles was also about eighi times what it used to be, avcraging about £1-0. Mr. Fraser said no doubt tlie Ministe. of Finance would cons\ler suggestion about minor dotails. When the Op position spoke about terrilde hurdshipcaused by the saies tax, they should u- , fleet that it was originally imposed by a National Government and onco th : legislation was adopted it becani" ■exeoedingly diffieult to alter it. It ha! j taken the Government 11 years to un.l > I in part, the harm done by a foriner j Government. There had been iejspecilic criticism of the Government'.--jexpenditure proposals. If the sehemeIwere good they must be paid for aml that set the limit to the tax reduction* that eould be made. Mr. F. W. Doidge asked what was the

good of a deathbed refientanee that went only one-third oi the way. Ln 11)33 the Laboui; Pa.ty hail pleuged u remove the "iniquitous, inhumati aua brutal" saies tax, yet £15,000,000 was to be collected from that tax during tlucoming year. The people would not forget that after having 10 year3 in which to redeem its promise, the most the Government eould do was to take the tax ofE "buttonhooks and feathers". Mr. Nash said it was the National Government whieh had introduced the saies tax in 1933 at a most cruel time and had imposed the tax on essential goods. The Labour Government had now removed that tax from essential goods. The Minister asked if the Opposition were opposed to the removal of the saies tax on building materials f Opposition voices: Nq. Mr. Nash said that the remission would total £2,500,000 and that for clothing £3,000,000. Would the Opposition agree. to take the . tax off furniture? Mr. Doidge: That's our policy. Mr. Nash replied .that that remission totalled £1,000,000 and added that the lifting of the tax from dried fruits in volved £250,000. Opposition Member: But you ca'n't buy raisins. Mr. Nash said other remission? brought . a total to £7,000,000 and every month there was £(300,000 less saies tax to pay. • •' The Minister went on to contrast prices paid for tobaceo in Britain and New Zealand and said what was costing ls 2d in Britain today cost 8d in New Zealand. Ile considered the Government had done a remarkably good job in redueing' and remltting saies tax. Mr. Mackley: Have you fmlshed it for tliis sessiou? Mr. Nash: That the end of the session must determiue. Mr. Nash said the Government was gradually wiping the iniquity out. Did the Opposition think there were other artieles whieh should be freed from saies tax before those cohtained in the list before the HouSe? The. actual amount which had been taken off in taxation was £21,000,000. Mr. J. T. Watts (Kiccarton) said the Opposition had advocated the . exemption of certain artieles from the saies tax a long time before this but what the Minister of Finance had not told the country was that by increasing import lieences he would still coilect £15,000,000 in saies tax this year. Ilon. W. E. Parry said the Government had used the saies tax Tevenue to conduet the war. Mr. W. A. Bodkin (Central Otago) said when the saies tax was tirst imposed, it was to meet a desperate posi tion and provide funds for the unemployed. The measure was roundly condemned by every member of the present Government. If the Minister of Finance was sincere he would have taken the first opportunitv of removing the saies tax and even when under fire in the Raglan by-election when events were moving against the Government, he would do no more than say that eonsideration would be given to easirig the saies tax on building materials. Events had proved that last year the Minister had budgeted for a surplus and that the saies taxation now abolished eould have been removed two -years.ago. _Mr. Fraser said that lo give effect to requests to remove taxation meant cutting the educational, health, soeial security aud housing policy. Mr. Bodkin: You have a surplus ot millions, Mr. VY. S. Goosman (Waikato) said the saies tax had been introduced in an extremity, but the present -Govefnment had retained it in times of prosperity This year the Minister of Finance had budgeted ior a surplus of £20,000,01)0.

Last year he had under estimated soeial security receipts by £2,500,000 and in come tax receipts were also under estimated. Mr. Nash said not one penny had been spent in the redemption of the overseas debt at the expense of essentials for the people in the Dominion. Mr. Nash, replying to the sugggestion of Mr. Bodkin that the saies tax should be removed from refrigerators and washing machines, said the fact was that those artieles were not subject to saies tax at all. Mr. Bodkin was wrong again. Mr. Fraser: He'sa washout. The resolution was agreed to and the Customs Ainendment I^ill giving eii'ect to the altered schedule was introduced.