Puzzle: How Will Budget Be Balanced?

Chronicle (Levin), 20 August 1949, Page 7

Puzzle: How Will Budget Be Balanced?

WELLINGTON, August 19. ' ' I am somewhat puzzled as to how, with the slight decline in business eonditions becoming operative in New Zea land, it is going to be possible to keep the rates of taxation at the same level as last year, " said Mr W. N. Perry, Dominion president of Federated Farmers, commenting today on- the Budget. ' ' " • • "The total expenditure for the.coming year is going to be greater thar. the expenditure for last year, but it- is proposed that this be done on the same rates of taxation. It would appear .that eithor the revenue has been overestL mated or the total expenditure is not going to reach the actual levels set out in the Budget. It seems fairly obvious,. however, with taxation at the present levels and expenditure increasing,. that the financial position for the year 1950-51 will be very serious for the whole Dominion. "So far as farming is concerned I may say I am very disappointed. Nothing has been done to give effect to the suggestion of the Sheep Industry Commission to encourage the farming of poorer land by reducing the burden. of ' taxation as the Commission suggested by exempting certain expenditure on improvements on this land from taxation. " My greatest disappointment, however, is that nothing has been done to' alter the exceedingly unfair position whieh exists so far as the elderly farmer who wishes to sell out and retire is concerned. He is still to be kept at the 1942 values. At the same time pensioners. are to receive another 5s a week. 1 would point out that this places ppn sioners in a much better position than the elderly farmer on a small farm wh> has struggled all his life and denied himselw in order to pay off his farm. "Five pounds a week for an elderly couple represents a capital sum (at pre sent rates of interest) of almost £9Q00, and very few small farms are woith that amount. Leaders of the Law Society and a Judge of the Supreme Court have pointed out the complete unfairness of ad^iering to 'the 1942 values, but the Government chooses to let this inqustice remain and evidently is not prepared to do anything about it. , tt