What Will Be First Steps Of Mr. Holland's Cabinet

Chronicle (Levin), 5 December 1949, Page 7

What Will Be First Steps Of Mr. Holland's Cabinet

WELLINGTON, Ddc. 4. "When later this week the National Party takes over the Government of New Zealand, it will faee some immediate" tasks biit just how much or how littl-e the people • can : expect to see reflected in aetion before Christmas, is a matter for eonjecture only. At thq moftient Mr. Holland is not disclosing his hand, having apparently decided to await discussions which will take place this week when the first meeting of new and old memters of Parliament who will form the new Government, will be held. One of the earliest issues upon which the new Government is likely to act, will be the promotion of more production in the building industry, which Mr. Holland, dur-ing-his election campaign and in the Party 's policy, indicated would be helped -by the Government taking over the cost involv ed in overtime work in the build ing and ancillary industries. It is obvious that this is a matter of some urgeney beeause there is always the possibility that builders or others interested, might cease working overtime and thus avoid the costs involved, while awaiting Government implementation of its promise. In any case. Mr. Holland is genuinely anxious to ease the present housing situation which has been an ever present cause of discoritent for many years. For this reason, too, he will be anxious to put into operation the promise to . remove some of the provisions of the Land Saies Act. Already it is reported that saies of house property are falling ofl beeause veudors are awaiting the removal of controls on properties under £750 and over £3000 in value. With these controls off there will be an immediate rise in prices but it is believed that the,re will be many saies of sections and houses. Oue of the promises which Mr. Holland made to women, was the abolition of the saies tax from wo%-saving applianees in the H. will be anxious to put., 1 bisfinto effect as soon as possible andfit will result in a reduction of 20 per cent in the cost of the fol-

lowing items which "Mr. Holland had in mind : — Brooms, cake-mix- ! ers (nonelectric), carpet sweepers, ! eooking utensils, cutlery, crock- \ ery, electric irons, electric jugs, | electric kettles, electric toasters, j linen and clothes baskets, pressure cookers, vacuum cleaners, ; washing blue, , washing powder and washing soap. Apart from taxation as it affects production through overtime, it is unlikely that there will be any early action. ' Mr. Holland promised that both the income tax and wages tax on approved overtime employment, would not "exceed the taxation payable had the taxpayer reeeived ordinary rates instead of overtime r'ates of pay." Lt may be found possible to .bring this into operation without calling Parliament together but it will certainly not be possible to do much more in regard to taxation relief, in any case until the promised , "complete investigation of the entire system of taxation, iir cluding tax on tax," is carried out. Mr. Holland outlined the guiding principles in reviewirig taxation als "to reduce the cost of living, to restore incentives to greater effort and increased production, to remove taxation penalties on thrift and self-reliance, to remove injustices in the present incidence of taxation, to reduce the cost of production, to encourage independenc^ and enterprise. to allow the ploughing back of earnings into industry for expansion and growth, to leave as much as possible in the hands of those who earn it." The achievement of these ends cannot be accomplished in five minutes and certainly not without legislation. Therefofe, Mr. Holland, when meeting his colleagues of the National Party later this week, is expected to propose an early session of Parliament, possibly in February. In the meantime, it is not expected he will be able to announce his Cabinet before Friday. Following this he will probably call his first Cabinet meeting for Monda,y of next wbek, after which it. can be as.umecl he will have some interesting announcements to make.