Tax Relief Overdue, Says Union Journal

Chronicle (Levin), 6 October 1948, Page 6

Tax Relief Overdue, Says Union Journal

WELLINGTON,. Oct. 5. Support for their sceptical reception and pointed criticism of the Budget is being found "by militant nnion officials in an article appearing in the current issue of the official journal of the Wellington General Labourers' Union, one I of the moderate organisations. The article, which is written ■ by "P.M.B.," .states that it was iucky for the Miuister of Finance (Mr. Nash) that the surprise. caused by the exeliange rate announcement directed attention from the ' unimaginative and stereotyped provisions1' of the Budget. The secretary of the union (Mr. P. 'M. Butler) is an exeeutive member of the New Zealand Labour Party and the New Zealand Federation of Labour. ' ' The industrial workers are anxious to play the game, and Mr. Nash has paid a tribute to their production," the article states. "We are slipping in our relation with other sections. We refuse to be exasperated to the poinl of febellion, but we have sympathy with those who are forced by such Budgets to ask: 'Is this from a Laboui Government? ' Insufficient Crunibs. "The Labour movement is wide, frauk and fearless. It believes in good things; it detests sectionalism of any kind. It will hohl its horses xvhen things are tougli, as it did during the War, but it wants more than a promise of crunibs when the table is full. 7 7 Wage-eammg breadwinners are in much the same position as before the Budget, continues the article, which says that some folk rushed into print with claims that the return to parity would reduce the cost of living. "We are sceptical of such result, 7 7 states the article. "We will be surprised if such a pleasant prospect eventuates." j'hnphasising that the £10 taxatlon rebate aiso went, for example, to a irian with £1000 a year, as well as a £52 a year family allowance, if the man had two children, aud giviug figures to show that the average family wago earuer received no redress, the article • states: "It boils dowu to this. Certain sections of the communitv have had an increase in wages amounting to about Is a week, but the average wage worlter has had no relief. "Why couldu't the Miuister make a coraesponding reduction in wages taxation on lower salaries and wages f Burely justice, apart * from jiolitical sagacitv, would indicate the reasonableuess of such action. " The article indicates the advantages, by comparison with New Zealand, to the Australian family man with two children, as shown by the Budget ijresented by Mr. Cliifiey aimost simultaneously with Mr. Nash's Budget. Excliange EffeCt. The article' recails that prices and costs "were immediately increased when the Forbes Government altered the excliange rate. Accordingly, it would have been fair to have reiliiced prices immediately wlien the excliange rate was lifted, but the Labour Govermnen^ had failed to do so. Saying that, apart from some macliinery aud other manufactured lin'es in whfch couipetition was lieeu, there had so far been no indication of a fall in piices, the article emphasises that New Zealand does not control averseas prices. ' "The overseas manufacturers cau lix their own prices, 77 the article adds, f'aud if they can 'jack up7 their prices for subsequent orders then we will not obtain a great beneiit; if any. Don't let us forget that it is still a seller's niarlcet. The world is hungrv for goods. The British manufacturer is not just holding goods for the benefit oi New Zealand on sentimental grounds. If they cau get a better price from any other country, then they will take it. That's trade. And that factor is the big 'if' in any prospective benefit from excliange parity." Inquiries today showed that the article is being discussed among militant union officials, some of whom remarked that the opinions expressed were a complete endorsement of what they said ahout the Government 's Budget promises. Labour propaganda had then attempted to suggest that the criticisms were ill-founded, and even non-existent, hut there was now clear evidence that moderates, as well as militants, believed that the promised advantages were specious, and that the time was long overdue for a substantial taxation relief.