WAR FINANCE

Gisborne Herald, Volume LXVI, Issue 20053, 27 September 1939, Page 7

WAR FINANCE

PARTIAL PLANS TAXATION NOT READY CAUCUS DISCUSSIONS RAISING OF LOANS INCIDENCE OE TAXES (Parliamentary Reporter.) WELLINGTON, this day. An important instalment of the war finance measures will be introduced in the House of Representatives to-night, but, the complete taxation programme will not be ready for presentation to Parliament this evening.

The principal feature of to-night's business will be the introduction of the Finance Bill creating a special war expenses account, containing authority for the transfer of votes already ’ passed by including large sums for the works estimates which come under the heading of defence expenditure. These sums, of course, can be increased in accordance with requirements. Patience will still have to be exercised in regard to the full extent of the taxation programme, although the Minister of Finance, the Hon. W. Nash, is likely to indicate the amount of the loan authority required. Lobby reports suggest that lively discussions on the subject of war loans have taken place within the ranks of the Government Party, because a substantial body of Labour opinion is said to be against trying the spartan policy of financing New Zealand’s war expenditure entirely from current income. Advocates of Loan It is believed that advocates of a war loan have substantially carried I heir point with the result that both loans and increased taxation are to be expedients. Great secrecy surrounds the caucus discussions of the Government Party and no consultations appear to have taken place with the representatives of the National Party on the subject of war finance. Although it is beI,Lived that the geneiy.il principles have now been a'greed upon by the Government Party, opportunity is being taken of dealing with some anomalies in land and income taxation and the measure to be introduced this week will cover these points as any existing features of taxation which arc unfair would press with increasing hardship on the taxpayers concerned when the general rates of taxation are substantially increased. The machinery necessary for bringing farmers within the scope oi the income tax will be included in this bill.

Caucus spent two hours in consideration of the Cabinet’s proposals and when the adjournment was made for lunch, the acting Prime Minister, the lion. P. Fraser, indicated that the discussion had been inconclusive and Ihe caucus would meet again at 5.30 this afternoon. The opinion is mow growing that a further extension of the session is inevitable.