BIG EXPENDITURE

Hawke's Bay Herald-Tribune, Volume 81, Issue 6, 30 September 1937, Page 6

BIG EXPENDITURE

-Presa Association.) '

Disappointment That Taxes Were Not Reduced BUDGET UNDER CRITICISM

(By Telegrapb-

WELLINGTON, This Day. "The main feature of the Budget appears to be the determination of the Government to continue its policy of reckless expenditure confident that, by some occult process, the squandering of wealthi will result in the establishment of a permanent improvement in the standard of living of the people and real enhancement of the national wealth," states Mr, McCpnl, president of the Associated Chambers of Commerce of Nejy Zealand. He expresses disappointment that there is no taxation relief either in company taxation, land taxation, income-tax or any other direction. "The Public Debt," he points out, "is bejng steadily increased, and taxar tion this year rnll amount to ten million more than two years ago. "If the Government had kept its promise not to increase taxation, both the sales-tax and the unemployment tax could have been, dispensed with this year and the amount of these two taxes, estimated to produce £8,830,000, left in the pockets of the people." He qnestions the policy of stupendous expenditure on Public Works at a time when export industries are in a fiourishmg condition, and "surely," he says, "it is a further , indictment of Government policy that the Minister finds it necessary to retain unemployment taxation, which last year drew £4,224,965 from the pockets of the people and which is estimated to produce £5,180,000 in the current year. The total revenue of the State in 191314 was £5,918,000." With regard to the huge expenditure proposed for Public Works, he says that the largest sum ever spent in any one year by the {Seddon Adrninistration w'as £2,143,000. The Government's policy was perpetuating a condition wliich would continue in an increasing degree to impedeth e reabsorption of labour into national and expanding channels of industry under private direction which was no charge upon the public purse but, on the contrary. would add .to the permanent wealth of the country. " With regard to local-body loans, he says: "It is highly disturbing to reflect that, after s'uch issues have failed to appeal to the general body of discerning investors, the Government should virtually compel the State Advances Corporation to invest in them." After references to housing, finance and Dairy-Guaranteed Fund position, he says that, in consequence of the buoyant state of revenues through ordinary channels of taxation, the public was fully expectant of receiving and was entitled to receive relief from the emergency taxes and from the addi tumai taxation" imposed last year.