TAXATION AND DEPRESSION.

Dominion, Volume 3, Issue 678, 1 December 1909, Page 8

TAXATION AND DEPRESSION.

THE PEESENT. POSITION EEVIEWBD.: '■■ Sir,—While tho Government is .engaged on the congenial task of considering schemes for further borrowing and taxation, it might bo well to recall the present position of the Dominion, in presence of the continuing decline hi tho Customs rovcnue, ; read with the Harbour Board's statement ■as to the shrinking tonnage of the port, which together-leave no room, for doubt as to the retrogression in trade.' Also, in spite of some brave words, the Einancial Statement itself from reassuring. It was generally expected, on the receipt of returns for the last year's wool,clip sold at the marked , increase of recent market price, that, the bankers would have been able to cancel their advance'.on the.rate,of , interest;, that the financial position of settlers would so have been eased, and that a renewed vitality*,would before now have, arisen in trade and Industry.;but regrettable as it may bej that has hot been the result. Tho position is therefore disquieting, and the more so'since the Governmeht, apparently regardless of jiublic prosperity,' propose lio relief, but seemingly w.ith a light heart are about, to increase taxation by half million.- In the seventies a Treasurer, in inc' easing the taxes of his day, boasted of ho\r t*e colony had. answered to the-whip; but the circumstances are very different now.. By the public debt table attached to' the /Budget, I see that tha annual charges theroon amount now to 42,G9G,i69, and by ; the Year Book for 1008 that' the interest'on the local body _ debt amounts to »6545,387; together an enormous continuing drain on the resources of the \community. Portion of this money,' no doubt, earns interest, but this does not'alter tho fact— and ijb is the real point to be'considered—that this enormous sum leaves tho country annually to meet our borrowing obligations. Hence it is impossible' that the Dominion could nojv respond with equal buoyancy tothe present demand. : For are we not already so.taxed that any further burdens must act as a sharp check .-'on.' enterprise, creating a lack, of employment, and assisting to bring on Uie depression, which, from the facts -mentioned,, appears to show signs of settling down upon us. At this juncture, if the affairs of the country were in' the hands of discreet men, Burely the first step would hare been to recast the year's' Estimates. Without seeking to generally traverse /hem, let me glance at; a few items in tftat liecultar combination of a portfolio, I mean the Agriculture,' Commerce, and - Tourist Department. On this combine it is proposed this year to spend , Probably this Department has, during twelve years, spent closo upon a, million for the supposed, benefit of trade; mainly, upon the steamer subsidies and the pursuit of openings for trade with South Africa, the East, Canada,; Tahiti, the West of England, and on its' staff, in London and elsewhere. "3Vifd' what has been the result? It is true somo extra oats were grown and sold in South Africa, but otherwise the people of th« Dominion have-not benefited one farthing by this large expenditnre. The London pTices of our produce wore not affected, and much more lias been lost than gained through this; Government effort by those who risked shipments to these supposed new markets; The cost in connection with the Tourist Department, during the'same period, must be a long way over the half million, if the loan money expended is included. Turning to a few items, as an ' example, • I might . quote ." oversea, agencies," which, excepting; dClOOipaid to an aßent, in Vancouver, means the cost of those offices in .... Collins Street,. Melbourne; and George, Street,. , Sydney,, the vote for which amounts this year to ,£26Bs,.against £2342 of the previous year! Who'will sayjthat this'expenditure is not Bheerwaetef, Why Cook and Son or; the TJnion Company would v have induced all the tourists andinore.thon have ever visited, Uβ, for a consideration. -In one of your contemporaries I saw a few days ago that the exports so far. of poultry this year had'only been 17 pairs,.yet: JJ2OOO. is set down as' the cost -of preparing poultry .for* export, with £2S(). extra for .the two overseers. \ Excluding oyperimental farms and the'retiring'.poultry exjwrt, the cost of the Government poultry fame and staff for this year is'yet set down' as -.£2045; with no deductions shown for earnings., \ ■■■••.'■■■■•,:. -■ .■ \"-'-y--\'!' ■'. ■.■::.■'■ :'•■

Every page of. these Estimates reeks with extravagance and . waste, and.while 'much' sjm-' pathy.' may ;'be' < felt- ! with':-.a''nnmerically' weak Opposition,-yet-they seem to have failed', to waste' which' everywhere- characterises: Government expenditure. . §ir : Harry Atkinson held 1 .that; it • was' the •first duty?'of- 'an Opposition! [to''oppose:taiation"andttoJchAllenße .the 'yb : te. 'for .every shilling that could'be shown- to' he' misspent, but now-a-dnys enormous votes pass in Rlobo. • Bnt ,we seem to ' have,.reaoh'ed.-a, position that is critical, and it .'may be'worthy' of consideration' ."whether . further '.'taxes ■ .ranhe drawn: from.', the, people; or' the:,capitalist withput; sharply..,intensifyinß.: the depression, with which-we are how threatened.—l am', etc.) '.."';."•' "': V V"; : "'.■•■■ ■::'''' ! ..- JNO. DOTHD!.' .' , November 30., . ■-~.. ■, •' ; : : .■■■- ; i