HIGHER TOBACCO PRICES

Chronicle (Levin), 6 November 1947, Page 6

HIGHER TOBACCO PRICES

LIVELY DISCUSSION IN HOUSE WELLINGTON, Nov. 5. An outline of what saies tax remissions on foodstuff's would save New Zealand housewives, vas given by the Minister of Customs in the House of Representatives tonight when the Customs Amendmeut Bill was discussed. The Minister said the savings, in the following list of commodities which hau been subjeet to the 10 per cent. saies tax would be: Baking pow'der £15,0U0j roasted coff'ee £10,0u0, nnicaroni, vernncelli, ete. £5UOO, tea £185,000. Savings on the following items which had been paying a saies tax of 2(J per cent., would be: Pai'ked eereal foodstuft's £150,000, eocoa £75,000, custard powder £20,000, canned nieats, iish, fruits and vegetables £225,000, jam and jellies £100,000, pickles and sauces £75,000, miscellaneous £100,000. The Minister added that the saies tax had been removed from ice cream but he doubted if there. would be anv saving because of the increase in the price of milk. Mr. Nash said nothing that we couid do without had been obtained from tiie United States in the last three moiiths. Mr. W. S. Goosman: Only a few Chrysler cars. Mr. Nash: The only thing about that is that the order was placed before the dollar crisis arose. Mr. Goosman: What was the date? Mr. Nash said there was nothing to hide and in due course the information would be forthcoming. Mr. F. W. Doidge ( Tauranga') asked what was the position about coal iinports and the Minister replied that the coal supply in the Dominion was not enough to kcep our iinlustries going and it was necessary for us to obtaiu supplies elsewliere. Beplyiug to an iuquirv by Mr. W. A. Bodkin (Centrai Otago), Ihe Minister said that wliere liceuces had been issued and orders placed and acceptml and the remittance authority placed, the liceuces were honoured. Mr. J. T. Watts (St. Albaas) said tiie dollar crisis arguments useil by the Minister were not strirtlv ujqilicable to the Bill before Ihe House. Tiie reasons advanced by the Minister wliv the increase had been imposed on tobacco, were tluit it would ludp Britain in the dollar crisis and would eacourage the growing of mu ro tobacco in Xew Zealaud. Tliose reasons were fallacious and the Opposition did not admit that the extra tax on luiij.ro Would assist the dollar crisis. The Governuient alre:idy had the jiower it needed to control tobacco imports. The real reason behind the Bill lay in the fact that the recent wage increase of llls weeklv was insuiiicient to catch up with the rise in prices. Hon. A. II. Xordmeyer said the renioval of the saies tax on fnixNtuffs would cost the Governuient £950.000 yearly. Mr, Bodkin: There "s a surpius of millions. Mr. Xordmeyer: I)o I unilerstand the Opposition suggests that the (loveimment taxes for fnn.' Opposition voices: Yes. Vuu tax for surpluses. Mr. Xordmeyer weut on to say that the taxes impo.-ed on loluicco ;tml eigarettes enabled the Go\ ernment to make the remission of the sjiies tax on foods. He then quuted a rjinge of new food- , stulf prices which would foliow tflie eiimination of the saies tax tohi pnce in parentheses t : — Baking powder zs 3hl (2s lidi, super uino biseuits ls ld ( ls 4d), water craekers llkl '.ls 2d), tiimed herrings ls 1 1 A « 1 t 2s Ibl , pilchards 2s li.ol (8s;, N.Z. sardines 2s (2s 4Ad), Canadiiin clium salmon 2s s.Ul (8s 3d), X.Z, canned peaclies ls 4d (ls 7d),

apricots Is 54d "(ls ,8|d), jellies 74d (9d), peanut butter ls 6£d (ls 10d), cocoa ls 4d (ls 7d), eoffee 4s 34d (4s 7d), N.Z. aprieot jam 2s 6^d (-3s), marmalade 2s 2-Jd (2s 7d), mustard 2s ld 2s (id), tomato soup ls 34d (ls 7d), -'vegetable soup ls. 3d (ls 64d), curry powder ls 5d (ls 8d), canned peas ls OJd (ls 91d), canned tomatoes ls 5cl (ls 9d), corned beef hash ls 54d (ls 9jd), tomato sauce 2s ld (2s 64d), best quality tea 4s (5s 5kl), medium tea 3s 8d (5s lid). Mr. Xordmeyer reiterated that the ehanges being made would be of great benefit to the housewives and would effect considerable savings in domestic budgets: A lively scene developed from a retort made bv Mr. Xordmeyer, to an interjection by Mr. Holland. The Leader of the Oppo.sition's remark was to the effect that the ehanges being made by the Governuient would not increase lts popularitv. To this Mr. Nordmeyer rejoined: "If oue can go by what oue has heard, the honourable niember is not very popular with his own party. We are likely to see some striking ehanges in that direction before very long. ' ' There was a ehorus of denials from the Opposition benches but the exchange was a brief oue. However, XI r. Goosman, who followed JMr. Xordmeyer, revived the niatter by declaring that he wished to give the Minister 's suggestion an emphatic denial. "No meniber ever enjoved more ioyalty from the members of his party tlian Mr. Holland," declared XI r. Goosman, who added that the Miuister's attack was a personal oue and unwarranted. The Speaker, Mr. ilcKeen, said he had not regarded XI i*. Xordmeyer 's remark as being of a personal nature. Amid interjections from both sides of the House, Mr. T. B. XI c( 'ombs (Lyttelton) rising to ;l point of order, said Mr. Doidge had declared Mr. Xordmeyer 's statement to be untrue. Mr. Doidge: Then I would ask permissiou to withdraw those words and to substitute that it was a downright lie. Xlr. Holland said he was not thin skinned and members couhl say of liim what they wished. He claimed, however, the right for his colleagues to defend him if they chose. "As for the Miuister's inipu'tation, I give it an emphatic denial. I kuow of no pending ehanges." Mr. Xordmeyer said that what he liatl said was similar to wluit had been said frequently in the jiast and frequently | denied but sometimes denials had b'een j sliown not to be correct in the end. After further pioints of order had j lieeu raised, Mr. McKeen said it was apparenl members regarded the matter very stnoigly. He asked Mr. ' Nordj meyer to withdraw as unparliamentary, Jthe remarks he liad made about Mr. Iloi • land, and Mr. Xordmeyer complied. Mr. j Xash then asked that Mr. Doidge be I asked to withdraw his...referenee to Mr. ! Xordmeyer 's statement being "a dovvnj right lie." On being asked by Mr. Mc- | Keen if he had used the words comI pia i uod of, Mr. Doidge replied: "yes, jsir, I most delinitelv made that remark | lun in viow of vour ruling I withdraw { iind apologise. " The incident clcfeed and the debate u ;is resuiued. • I Mr. Goosman said the Opposition j weh-omed the removal of the saies tax j from fnodstuH's but contended that it jshuuld have lieen- d-fine long ago.; 'l'he j Opposition also objected to tiie shifting j of taxatlhn from the. -housewife tp the smoker. .?l nioie effect i ve >iay to lielp j Britain would be to quieken tiie turn- { round of ships but the Govenmient ap1 peared to 'be baukrnpfc of any plans to j iichie.ve th'at.- ' ( \ ■ ■ : " : j The Bijl was read a second tinie. j Two divisions were called for when jthe Bill was being.. put through the J committee stages, the first on the amended tarilf on immanufactured I tohacco and the second on the 10 per

cent. saies tax on cigarettes. The Governuient survived each division by a margin of two votes — 37 to 35. The Bill was passed at 11.17 p.m.