RISE IN EXPENDITURE

Hawke's Bay Herald-Tribune, Volume 81, Issue 5, 29 September 1937, Page 5

RISE IN EXPENDITURE

Farmers' Union PrBsiJent ^Dumbfounded" CHEISTCHUROH, Last Night. "I am absolutely dumfounded at such tfbmendous aXpehkitur'e,' ' said Mr. W. W. MulhoHand, president of th® New Zealand Farmers' tJnion. "It seems as thbttgh they have gbt att fexpenditure biig Whicih is catrying them beyond all reason." Mr. Mulholl^nd noted with grave concern thb imaEtteSs of the surplus anticipated. Nb one, he said, could rfegard " world cbnditions aS stable, and thh violeht nii'ctuktibnh bl the mar^cet itt Wttll fetr'e'ek wefb A iferi* ous wartting of Which considerablis notico should have been taken. ."Such staggering expenditure as that is moret Eke'ly to have the effeCt oi inCreasing hardshxp on Ihe poorei people. If there is the slightest recession in oversehs prices, there will be that effect. . 5i course, that rem4rk does not apply ko those itt receip't oi fixed payments from the State so Ibng as those payments can be made; ' ' Mr. Mulholland added. "it must be remembered that the increhsing revenue is due to improved conditions, and the longer conditions improve ihe greater becomes the possibility of a fall in ptiees that will immediately' do away with the whetewithal tb hiako those fiXed payments. "While I am not surptised, I am naturally disappointed that the very unjust land tkx put into opteration last year is being cbtttinued. I hope that the suggestiott that iatid and ittcbme taxation is to be fbviewed durihg the sessibn is a ray of hope. I don't think it is all tho same." Mr. Mulholland dbscribed the reference to proved hardship in the payment of land tax as bfeing ptobably Ohly sufiicicnt to save tkose ivhb should be madS bankrupt if they wcr6 forced to pay the tax. He thought it did not represonl atty telief from the land tax hurdon other than that. - Thb fear that there was not a general appreciation bf the meaning of the deficifc itt thb dhify ittdustry account was Wlso expressed by Mr. Mulhollattd. That deftcit b'f £650,000, he said, wtts offlcittlly a deficit in the dairy industry account of the ' Government. Actually, it was an bverdraft standing agdinst the farmers bf the country, to be paid ofi when prices rose tb t'hat extent beyond the Governmbnt '« guarantee te the dairy farmers;