BUDGET CRITICISMS.

Dominion, Volume 3, Issue 663, 13 November 1909, Page 6

BUDGET CRITICISMS.

REPLY BY THE^PRIME , MINISTER. ,\: .CTyTI^SE^ViCE:, ; PENsipNS,:.,.- [:'[< ,'.. • ' l(By ;Tele'iirapU-Prese Aeeeclßtlon.) ;■ ■; .. '•■.■'•;■;■'■; 'i'vChristciiurch;; November 12;'. J -..Sir Joseph:-Ward-was -interviewed', reparding. the,. Leader .of 'the }!Oppp'sitipn's:-. eritioiisms 'on the.-.Budget; , ; \-,'.-,■.<;.•'.C '. . ; :\ ; V: ■■'■■: \. ...-. ;•' :•■ "Mr. 'Massey- states," said -'the' Prime, Minister, -/'that' .'these' propbsals.."di6close "instate °f. things; calculated to-'makei sane';.and,.sober'min'ded•.peoplei- wonder how this.- wild-cat-policy will-end, and -I have no-hesitation'in saying , that -the position disclosed-by ihestajienient and the; huge-increases of taxation necessary ;ha,ve-.'been>.to a; very great, extent brought about by want, of '-foresight .and'-Teck-lessness oh'. the part , of Ministers.' '-.'• It ;, is very much-to be regretted," the Prime Minis-, ter continuedi-'."that Mr: Massey' .does , -not finish his observations, and give- facts' instead of: generalisations. , .-•• MTiat'are pfipcipal -increases: of. expenditure proposed- by_ the .Bud; get ? ■ They are for' naval defence' and for reorganisation of our-system of./defence., within, the country .itself.: To,enable these two matters to be carried ,; out,- the Budget ■ proposes an increase, of d>300.000 per annum,...-• yizf, . for interest 'on the -Dreadnought, and SSO.OOO: for-.a' sinking fund,. for'ebmpulsory military traininf,• -/and , . for three years. ■ for ' -additional armament: and oquipment.:..'-The only; other,;,increases 'proposed are .'i2p,ooo '■ as ■ a. contribution to- the. Railway. Superannuation Fund, and JESOQO , towards, the'. , 'Public'.-, Service- Superannuation Fund/to eriable.a separate'and- comparatively small .'branch -of • the "-Police , Superannuation Fund to ',be'. merged .with the'general fund. These, items,'give/..-a. total of : .£30,000 per an-, niim.. : In what/;way 'does "want of foresight and recklessness ".on the' part of Ministers , -, account "for MW :alleged . 'wildcat policy''.that for. the.'first--;time 'in the history of:-the. Do-: minion , provision'; is being made . for ..defence' in.-a' direction'which/ the country generally desires .to'be adopted?" ■ In-what way can'the term; be,applied to a' desire to' strengthen the superannuation ' funds r have named? In what-way can the term 'recklessness' be "ap-. plieU r to. the; principle-that in adjusting these things a 'precautionary .. ,'policy, . charac.terised ..by prudence,.,. , provides.-. -for a ' balance : of ■ jEHS.OOO : over- and-.' above the'j£33o,ooo of fresh .expenditure that I have given? Is it .recklessness .where for .the first six mohthsof thislyear our Customs- revenue shows a drop of about .£200,000 to jprovide. for,' the possible' contingency, of the. deficiency not being made up during the ..next six' months of the year?. I should imagine that 'sane and'.so,berminded people;of'.this.country' who take interest in its affairs would prefer to see a stabng financial policy, maintained,'"even/ , , though -.it' means additional-'taxation and to allow' , -the position connected, with' the'/.Customs revenuo to be bejond all question, ,and that; is what my proposals seek.to dp. Mt is quite .clear that if ..we, 'establish^/.the. .system, proposed.-re-ganling- defence, yccanubtdo .it/-.without tlio expenditure- of- thelainoiint; I' hav'e.namQd," aiid if -we': believe itfp, be necessary; th'e.question bi'-xlnfence', should beV-place'd bn ; a proper basis, and : 'we-cahnbt;'do ; ;this- ,: without paying'something for it..' .., : ■ ■.:';', :; , ; ,

[_ ...•■,•;,': ;;■■.. :',. ■■• The: Deathi ..Duties:-, , • .-.'.-.,■,".'■ ' "Aβ to; way in'which the amquht'of tfxa- : •tion,',to..meet'.thiß' expenditure , j | is'proposed-to'.be, the principal amount is'to come' from death dutie3;' ! andhere I wish'.to.state that ■even, had/no ■proposals for .increased.. expenditure Jor ; 'defence. • 'and '<strengthening -superannuation iong-distance .-reilway/ fares; With' the proposed 'alterations'"of" the' death' 'should; as.\!a•inatter;bf" l fairness "to; the' great,:mas_s.-of . .the people,' ibeeiuaffected: ,An exaininataon-'Of the :present -.law; -discloses,,what., to" my mind ..is an>"ab'solutely'rptton. aiid indefensible. system, which' -iiupbsed- 'tiixatipn' upon. :-tie-:cdmpara-; 'tively-■•pooi\andr'all6wed; the,;.w,ell-toTdp. isection. of.'''the\cbtara.unity,; to .'escape; ", I( ; 'believe I;, amright W',saying .that,;no has;'upon.its 'statute, books, a system : " of •dea'th ; dtifae3',snch.'as-~have, operated; •in New-Zealand'fqr.the,pas't:?quarter;of-a:.con-, tury/6o iinfail-iin-- their 'incidence,- soi illogical in- .gradation','-so"- iinjust/ to' those-' leaving?jmall : amouhts,y,'and go. one-sided ..in ,fdydur, :i 6f ■' tne ,'. J; 1 ; ;(■,/::>.::,; ;; .; \i-' ' : 'i V\;' C

.;!'-'-:'i '■".■■',■■'' .v'other Items.' ; ..,-,- ;:'■ :"■ ;v „■,'.■;, - .'The largest': item. is- that: deeding -with'; long distance jailivay .fares;. With' Uie/ptoposed alteration that-1' am recommendirigv Parliament, to adopt, we shall -, etill have, remarkably'cheap. long-distanco_passenger,, rates operating -in New Zealand. :.'• "■■■ ' '■ '■"'■ . ■ '"; : -'y--■■■■,,.■'.' : ' "The imposition of a 1. per , cent, pnmage duty on-dutiable, godde'isa fair proposal, and I':.think', that 1 .- all'. wilU. agree, ..that "/every sc6tion of the "-community shqmd give a. UtUo towards *thoniainteriauce of the, defenceof. the .country in' which^^:they : are making their-, living. The principle' does- not .affect- any article on the free list, aad therefore leaves what, ■are known as '•Tircakfast. table' item's, such 'as ■ sugar, -tea," eto:, 'untouched, and..-.unkss • it is to be (HiggesUd that the. protection'of the hearths and,homes,of the : -people:of New Zealand' is tb-'be'Vpaid for by,-:.one" section , of - the: oommunity;' , l / »o 'H. o t"know.: of: any' more ef-:feotive''way-,o£ 'providing,'-a.'emall ■share;than I by the'method that I' , have"6Bggested. ;: -A9;tho", banks-are ;unquestionably paying- less income' tax-than;'other organisations,, and. ,'less/ than.-| they should J ■ fairly pay, I'- have , yet;- ■ to;. learn; ■ what eubetitution for this can ibe-i made, and, , so long'as'the country is levying. l upon'por-. tions of the receipts of the racing clubs jt is difiioult to understand. h6w : . .'.any rational ground of objeotipn to raising,- increased,funds in.-.this .way.^can^e -urged..a : i prudent. l .thiSg-.-fpr; th'e:;.country to:.obtain, the requisite, increase ofrrevenue' from- sources that:inll ; produce; the ; least.-.disturbance';of .the; general' industrial and commercial develop-'.-ment .of.the country. , ;,Ilook interest to the. coming":debate, in ..oWer'to- learn .from Mr. .• Missey.:, what alternati je/ - proposals of a'practical-nature'he "has" t'o'suggest.,. .. ■■"I. desire -'to":m'ake'.,one .further,■comment, and that.'is:-that: the-,people,-..0f ; rKw.. Zealand are not'blind, to : the,'.• fact . that: .they.'have received- at the! hands of the, Liberal Government Tery-'beavy'Teriaasioiis ..both.:o{\taxation and- Departmental reductions over a'considerable period, .and whenthe ■proposils. now before; the: ■ country .are... considered :in .the,' light.; of what /has/already,, that' re'speflt,I;am of opinion' that a calm;'review; of the whole • position i , will. enable j them,; to ....see; that nothing revolutionary l :or. reckless; in ythe light (ff'.fresh. nndertakmge :.prbvided,' in the rgeneral interests, of the community 'has'been, proposed ■by ; -me/*-';.;.; ■'■:'.::',' : >-'- ■: ,'".■■■.'-.' .'"■;'■: ol '■'''.}.'•■■',

•.;■"..: '.■■'■'. Civil;'Service,Superanniiatipn. ■ ■■. ■'.'.", ; '.Eef6rring..to'.',tiie.'.,prpposed' •'.' alterations: , , .to the-eivir-Service'euperanliuation [scheme,- tho Prime' Minister, -said' ■ • that < there'; was - no'• limit ■under theV;preseut'.:Act\\.to..,.Ue:vi»eJiEi6ni'.'xhich' a retired''officjial.'-might"'receive.'' He' might' : get; .'jeeiW;; or;, even:' .'per. 'annnny • ;It" was necessary.' thai Xthat. sort'.of'.thing should .be stopped; i and;:;in': order ,to' .preserye -the'/ right of .those who were> ; riow; subscriber 'W the. fiind, , ' he' .proposed;; that;, a definite .pension limit of iE2SO perVanhum:,should: ; be;fixed.',;.''As there ivereVnpw in'■;the;service' in , , receipt 'of Balafies :of .• under- ( il400 were;, entitled "to draw;, .JB2soiOr , over, as' pensions,; legislation making iSSO tho -maximum pension would apply to the ' whole service;, in ; future, and those ia receipt now of ,£4OO .or:over, (some of .whom ■werel.eniitled'to , over;i2so;as:pensions), the law : as; a matter of •fAirmess'would, not be allowed to pTejudice. There'were not a great .many; men-in- the service; getting, over and, -.'as a-' matter. of, : fairness and equality, r they would. '• get; whatever; the present Act'provided for them.'.' •. '■■:^-.'''::■'

■~. <. : vSTATEMENT-BY;MR;VMASS(EY. : ; : •. \Witii reference'fa toe' remarka* ; 'at Christ church by the Prinie Minister, in reply- to his criticism: onl.the 'Budget,/Mr.-.Massey. saji:' "I: ..■will take the opportunity, "of: replying' fully when- ; I-speaki 'on' the: JPrniincial•'•State-. ment, but I may-say. that Sir. Joseph evades , the; real' issue. ■■'■ ; It-isnot with me' p.'. question of -how. ext^a;.taxation' should , be" raised, but that- it-Vie.necessary : t6?.'raise\-'it'.by-inoreasing the; burden-of •' taxation.; .My • point', is' simply' that, with capable' arid '■ careful 'men at'' the head!of affaire," a-goodcountry like this,;with the. good -seasons we have been ' experiencing, ana,'.the.'grdat■• resources ■ at. .;■ fiur:;. command,' should never have required soch f a tremendous ' J?^ 08 ? 0 °*, t&atjon as i s proposed, in, the, Budget, and 'I "consider 'the.'extravagant, tendencies of 7,th.e r Government are, to a great extent, responsible .for; what ■has occurreir" j