STRAWS IN THE WIND.

Hawke's Bay Herald-Tribune, Issue 96, 10 May 1937, Page 6

STRAWS IN THE WIND.

While a Minister of the Cxown — perhaps intentionally, or perhaps designediy with a view to dispeiling them iater on — thus arouses misgivings as to the success of Mr. ISi ask'a missJLon, a piain member of Parliament, he oi Waitemata, takes it upon himself to asaure his constituents that the sales-tax and high exchange on London will be abolished. This, he beiieves, or says he believes, will take place during the Government 's term of office, which has now but some eighteen months to run. One may well be pardoned for wondering on what authority Mr. Lyon gives expression to this belief. Is he ministerially inspired, or is he just talking for the sake of having something to say that points to the possible fulfilment of two of his party's so many unfulfilled promises? For the year ended 31st March last the sales-tax was estimated to realise close on £3-million, or about £2 a head of the population, spread over all classes. Being a percentage tax, it necessarily increases as the pxices of commodities go up, so .that for the now current year, with prices still soaring, .the amount would necessarily be a good deal more, unless the rate of tax is reduced. From what alteraative source does Mr. Lyon suggest this very substantial contribution to the State revenue is to be drawn by a Governnfent which shows n symptoms of reducing government expenditure, but rather is almost daily incre&sing it?, Then , again, if the artificial exchange rate is to be abolished, what has the Government to offer by way of acompensiatxng substitute 'to the exporting farmers in whose interests" it was instituted? Does he mean that before the present Parliament ends the Government will fuifil its declared purpose of taking over control of all exportable produce, as it has already done of dairy products, and upon somewhat like terms ? The Prime Minister himself has said the Government has no intention oi " the kind. ' Mr. Lyon is also reported as having told his audience that the Government had advanced the dairy farmers £54-million without interest and that ' ' this sum would be recovered when their produce was sold." Another member, speaking the same evening at Te Awamutu, frankly admitted that the Government would make a loss >f about £2-inillion on its dairy venture, but Mr. Lyon has nothing to say about how this is to be made up unless from extra taxation. Or is it to be wiped off the Eeserve Bank's slate as something that "cost nothing'' and therefore does not matter? Is that the seheme of "costless credit" upon which the country is for the futuro to be financed? Losses aro not to count because they are lu money that cau easiJy bc replaced by fresh pencil cntries in the Eeserve Bank's ledgers.