THE COST OF LIVING

Hawke's Bay Herald-Tribune, Volume 81, Issue 8, 2 October 1937, Page 3

THE COST OF LIVING

-Presi Assoeiation.)

How Would N.Z. Meet Drop in Prices? THE TAXATION BURDEN

(By Telegraph-

■WELLINGTON, Last Nigi». When the House resumed at 2.30, the debate on the Budg'et was continued by Col. J. Hargest (Awarua, National) who said the Government was making a raid on Ihe finances of the banks and the businesses of the country. This was the timo, he said, when the farming community was entitled to build up their reserves through reduced costs to meet the future but under present Government taxation, they were unable to do so. He also stated that the standard of living of retired civii servants who were on superannuation was going down, as was the standard of those living on their savings who were finding it a mighty difficult task in view of the increased costs during the last two years. The country had been living up to the limits of its income and any recession of prices would result in a crisis. Col. Hargest proceeded to criticise publie works and railways axpenditure and also the Government's housing programme. Mr. 0. Wilson (Rangitikei, Labour) said that in boom times there was a tendency for land prices to rise and high land values meant it being overmortgaged. This was not a good thing for the country. The Government 's policy, he said, was to see that prices uid not i'all but. rathcr that they should be stabilised. The Government wanted to see prosperous years such as the present continue and to see wages keep up with profits. He quoted economie authority for the contention that in a period of high prices, high taxation could be imposed whereas the reverse was desirable in slump period3. The policy the Government was carrying out was a sound economie policy and was such that it would meet all criticisms f rom the Opposition benches. Wage Tax Criticism. Mr. W. J. Broadfoot (Waitomo,, National) said the greater purchasing power of the Dominion to-day was duo to an inerease in overseas prices for our produce. New Zealand's revenue constituted a record in every deparfcment and our spending was commensurate with it. In connection with the unemployment tax, he quoted the Minister of Einances eondemnation of it when it was imposed but, stated Mr. Broadfoot, he had done nothing towards its removal. Dr. D. G. McMillan (Dunedin West, Labour) compared the past Goveruments inability to keep within its estimated expenditure, with the preseut administratons financial policy. The present Minister of Finance deserved the thanks of the country for his successful loan conversions and he proceeded to compare them with similar operations' of past Governments. Members of the Opposition had complained of the heavy taxation of the Labour Government but the taxation was not harmfnl to industry. If the wealtby people were taxed and the money spent on useful services, industry would not be harmed in any way. The House roso at 5.15 till 2.30 Tuesday.