OPINIONS ON NEW TAXATION

Gisborne Herald, Volume LXVI, Issue 20006, 3 August 1939, Page 10

OPINIONS ON NEW TAXATION

wered many points of criticism raised by Mr. Hamilton. Mr. Sullivan said that a happy and hopeful attitude in regard to the future was shared by a great majority of manufacturers, retailers and other business people generally. The Minister proceeded to refute Mr. Hamilton’s statement that the new taxation would constitute a load on the average family. ' With exemptions, ho said, the average family man would not be affected by the higher income tax and deatr. duties, nor would his standard of comfort be lowered. Referring to the recent internal loan, the Minister declared that the faith and confidence of the people of New Zealand hacl been evidenced uy the fact that, without pressure of any kind, the £4,500,000 loan had been over-subscribed. The Government, the Minister continued, had not broken its promises in respect to making medical (benefits available and the scheme would be put into operation as soon as the doctors were ready to co-operate fully. The Minister proceeded to reply to Mr. Hamilton's criticism of Mr. Nash’s London, negotiations. Under these negotiations, he said, the loan of £17.000,000 would finally disappear. He thought that the Minister of Finance could be heartily congratulated on his London arrangements. Mr. Hamilton, Mr. Sullivan continued, had referred to criticism which had 'been made of British statesmen. New Zealand, he continued, was very deeply interested indeed in Bril-?:---and the Empire, but for Mr. Hamilton to say that none should differ from British statesmen was . carrying things too far and was reminiscent of the attitude in the totalitarian States. Provision of Homes Regarding the criticism of the Government’s housing policy, the Minister continued that his Government had set out to ’build people good houses. The housing position had ■been accentuated enormously 'bv the policy which the Nationalists themselves had pursued. Mr. Hamilton had also drawn on his imagination in stating that a number of skilled tradesmen were to be found in the employment camps and on public works. Frequently, said Mr. Sullivan, he had asked the Minister of Public Works to investi-

gate the matter and although inquiries hod resulted in some qualified tradesmen being secured, the number was not la v ge. The Government, since assuming office, had brought back a number of men to industry and had also secured the services of a number of young men. who had never been in in-.luviy before. The Leader of the Opposition was also very difficult to please regarding the guaranteed price. vVhat had become, Mr. Sullivan wondered, of the Opposition's compensated price scheme. ’j here was only one way me Opposition would reduce costs, added Mr. Sullivan, and that was to adopt hie policy it had adopted between 1931 and 1935, slashing the wages of ‘he v c- v kers. The Minister declared that the (increased cost of living had been moie than offset toy the increased wage rates and quoted figures in support c-f this Statement. ’ Mr. ’Sullivan proceeded to outline the estimates of receipts and expenditure of the social security fund for the current year. The aggregate of : estimated receipts from -all sources, he ; said, were £12,063.125, and this was ■ squared (by the corresponding estimated 1 outlay on the benefits directly intercbargatole to the fund. Details of estimates were as (follows: Receipts £ l Registration fee .. ■• • 630,000 Tax on wages & salaries .. 5,550,000 Charges on other income .. 3,050,000 Penalties and fines .. ■ • 20,000 Miscellaneous . • • • 41^5 Subsidy from Consolidated Fund 2,000,000 Transfer of Budget surplus ; from last year .. • • 809,000 Total £12,063,125 , Expenditure i £ Age benefits 1 6.910,000 ■ Family allowances .. • • 700,000 1 Invalid benefits .. • ■ 1,050,000 [ Miners’ pensions ... . • 99,000 Maori war pensions .. • • 1500 Orphans’ pension's .. • ■ 30,000 Widows’ pensions • • • ■ 1,010,000 Unemployment and sickness (benefits .. .. .. 508,000 Maternity benefits .. • • 3,085,000 | Hospital benefits • • • • 738,400 Medical benefits .. • - 100,000 : Pharmaceutical benefits .. 50,000 Emergency .benefits .. • • 300,000 Administrative charges .. 518,025 i From (the above aggregate has to be ' deducted £56,300 credits in .aid, bringing .the total to £12,063,125. ■ (Mr. Sullivan, in conclusion, referred ; to the .subsidised wheat position in ■ New Zealand, saying that no section of 1 the industry 'in Canterbury wished Che present policy to be altered. The increased taxation, he said, was 1 being distributed back to the community in the form of pensions and social services, and was going to the | people who most needed and deserved it. The House rose at 10.30 p.m.

BUDGET DEBATE

TRENCHANT CRITIC i “BREACH OF PROMISE’’ \ ELECTION REMINDERS | 1 1 DEFENCE BY MINISTER SOCIAL SERVICE AIMS (Ter Press Association.) WELLINGTON, this day. The House of Representatives was Only reasonably well filled at 7.30 o'clock last night for the commencement of the Budget debate. The Leader of the Opposition, the Hon. Adam Hamilton, before beginning his criticism of the Budget, reiterated his regret at the Prime Minister's illness and hope for his speedy recovery/ He explained that anything he said in the course of his address and any criticism of the Prime Minister was in no way personal. As public men, the Opposition had to discuss questions of public policy, and it. was criticism of such policy only that was intended. Personally, lie entertained a very high regard for Mr. Savage. The Budget, continued Mr. Hamilton, could be termed a breach-of-promise, Budget, because of the many promises the Government had given, but had failed to nonbur. It had promised not to increase taxation, yet it had increased it £13.000,01)0 a year. It iiad promised .not to use public credit, but had floated loans in New Zealand and London with more to follow. It had undertaken not to increase the cost of Government, but this had been increased by £28,000,000. Unemployment had not been cured as the Government had promised. Free medical services had not been provided. The promised, increased production had not been fulfilled and the promised sickness benefits were now only

for the poorest people. The Government had promised houses foi* 12s Gd a week, said Mr. Hamilton, but the rents were 13s C_d to 32s Gd, and other promises- which the Government had not carried out, were the removal of the exchange rate and th c sales tax. Not only was the Budget a breach of promise, he added, but it was full of contradictions. Its taxation proposals were a direct blow at the standard of living of a typical New Zealand family. The whole construction of the new taxation burdens, he said, discouraged the produce]* find the thrifty and those with the incentive and enterprise. In particular, it was another direct blow at the cost of the primary producer who had been singled out for further increased costs. Increase In Costs Proceeding with an examination of Labour rule over the last four years, Mr. Hamilton contended that the Government had increased the cost of running the country by 70 per ceni. Dealing with British foreign policy, Mr. Hamilton, said that members of the Government and some Cabinet Ministers had recently developed a habit of severely attacking the decision of British statesmen, especially the Prime Minister, Mr. Neville Chamberlain. It appeared to him bordering on presumption to attack the actions and decisions of Britain's leading statesmen. especially while those attacking it were not doing a tithe to strengthen the Empire against foreign dangers, but were, on the contrary, seeking financial aid from Britain. Mr. Hamilton criticised thc Government’s housing policy, contending there had been a rise in rentals of I 33 1-3 per cent. Speaking of ihe guaranteed price, ! Mr. Hamilton said the deficit in the I dairy account for the year just closed I was generally estimated at £2,000,000. I The Government had promised the | dairy farmers a standard of living comparable with other sections of I the community, and the dairy farmers would insist on this being carried out. The terms of the financial arrangements made at Home by thc MinI ister of Finance, the Hon. W. Nash, said Mr. Hamilton, dealing with the Dominion’s overseas finances, imposed a terrific burden on the country’s export wealth, although certain conversions later might ease matters. The British Government, he thought, had treajed New Zealand very generously. New Zealand’s progress, he said, depended on the united effort of industry, commerce, agriculture and labour in co-operation. This was the course that the Government should steer. Mr. Hamilton’s speech occupied an hour and 35 minutes. Thc Minister of Industries and ComI merce, the Hon. D. G. Sullivan, de--9 fended the Government’s programme 3 and the Budget proposals and ans-