POLICY OF HIGH TAXATION

Hawke's Bay Herald-Tribune, Volume 81, Issue 19, 15 October 1937, Page 3

POLICY OF HIGH TAXATION

-I'reas Assofinfion.J

REDISTRIBUTION AIM Premier Denies Promises of Reduction GOVERNMENT'S OBJECT1VE

(By Telegrnnh-

WELLINGTON, Last Night. In the House to-day the debate on the Financial Statement was continued by Mr W. P. Endean, who said the present Government was a gamblers' aovernment and the people were wonlering what was going to happen to them. He criticised the Minister of Finance 's attitude towards the Empire ind also stated that the Government 's aousing policy was proceeding along vrong lines. It should eradicate the slums in the first instance, and he advocated we should follow the precedents of England and New South Wales in our housing policy. He also "jtated that the policy of guaranteeing the price of any one class of our primary produce was unsound. Why did the Government guarantee the price of butterfat and not that of wool? It knew if it did it would do irreparable damage to the financial structure of this Dominion. In fact, the finances of ®the country could not cope with it. D ealing with work on the wharves, Mi Endean said the New Zealand. watertsideTS were the world 's slowest workers. Mr Campbell: Are they as slow as the lawyers? (Laughter.) Mr Endean proceeded to state that Indiseipline was, also characteristie of Dur watersiders, whose work he com* oared tmfavourably with that. of the limilar class of labour in England and A.ustralia. He could not think, he said, that overseas capital would come to New Zealand while the present feeling of uncertainty continued, nor could we expect immigrants unless we had more overseas capital invested here. Mr Endean said he considered we were not jontributing sufficient towards the de--fence of the Empire, and stated thait ; there should be somo system under which onr young men went to gymna.siums at least once a week to build up their physical fitness. i/osition or seconaary maustries. Mr Osborne drew attention to the increase in the output of secondary in dustries since the Labour Governmenl i had come into ofdce. With regard to the boot and shoe industry, he said h« knew the position was serious as tho result of overseas competition. There was a way ont, however, but the position could not bo rectified in a day oi two. It was a gross exaggeration foi the Opposition to state that the same Iferions position existed' in other industries. The organisers of the National Party, he said, had been going Tound the country stating that the ship 'of State in the Dominion was being controlled by Communists, but we did not need to taka them too seriously. References to New Zealand 's finances by the overseas press had been very favourable, in spite of the Opposition 's contention of the uncertainty existing here. The Government had also been criticised for the introduction of the 40-hour week but a number of leaders of industry themselves, after several months experience of it, had spoken in favour of it. Native Affairs. Sir Apirana Ngata said he was satisficd that the Government was carrying out its hative land settlement policy in the only manner possible— that was, the development of native lands by the Maoris under good supervision. In answer .to a Government interjection asking how the Maoris regarded the guarant^ed butterfat prices, Sii Apirana Ngata stated he did not intend to deal with the guaranteed price. The Maori, he said, took what came to him in the nature oi the guaranteed prico It was a crumb from the master's table The Maori allovred the white man t worry out things like that. The Minister of Lands (Hon. 3F Langstone) : Those crumbs are in creasing. With Aegard to the social effects oj the Government 's land development scheme, said Sir Apirana Ngata, no ching better conld have been started ii the Dominion and it was a pity it hao uot been commenced years ago. However, he would ask the Minister to pay more attention to the personnel of the supervisors, some of whom caused frietion and did not understand the tvorking of the Maori mind. Hon. F. Langston9: The Minister has received no personal complaints. Sir Apirana Ngata: I am telling you what has been told me by the Maoris themselves. I'd need something very specific before I placed a personal complaint with the Minister. The spealcer criticised the adminis;ration of the Native Affairs Departnenit, stating that there was need foi lorne effective system of decentralisaion and he contended that native arts ind crafts were not getting sufficient issisftance. Taxation Questions. . The Budget debate was adjourned tntil 10.30 to-morrow and the Hous( troceeded with the committee stages ■f the Land and Income Tax (Annual) mu. ' The leader of the Opposition (Hon i.. Hamilton) said the House was ea itled to be disappointed with th« vlinister of Finance (Mr Nash's) reply .0 the debate on the second reading oi ;he Bill, as there were quite a numbei >f points which he had failed to cleai lp. The prosperity. of the country toiay, he said, was more due to past jovernments for the foundation they lad built up than t o the legislation of ;he present Government. The Minister 1 of Finance had failed to make clear the Government 's policy if overseas prices fell. Mr Hamilton continued that the Minister had also failed to defino the hardship clause and he asked was the Minister 's definition of hardship con.finatl ilifi CUI pf th« iu BMC wJUkk

earnings did not show sufficient income to pay land tax. The Prime Minister stated that, if the Opposition 's amendment had been carried, the Government would have lost £8,500,000 in xevenue. - What would the Opposition expect the « Government to do then? Mr Coates: Ypu would not have been [the Government if our amendment had ' been carried. Mr Savage-: Well, thank the Lord we have a sufficient majority to keep you from passing an amendment like that! Mr Savage continued that the Government 's policy was to see that as long as the people produced things they should be free to enjoy them. He proceeded to criticise the Opposition 's tactics in moving their amendment, and stated that Mr Nash's reply was the most capable one which had j been made by a Minister of Finance in Ihe House. ' Mr Hamilton: That's only the Government 's opinion. Mr Savage: Surely the opinion of the Government is equal to that of the Opposition. 1 Sir Alfred Ransom said the land tax and income tax levied on the f armer placed him in an entirely different category to the ordinary taxpayer. The farmer had to pay tax on his income, . and he was also called to pay land tax • out of that income as well. Most of ! the land which would pay a heavy land tax, said Sir Alfred, was in the South Island and was not suitable for subdivision. „ Mr S. G. Holland said it was no excuse for the Government to say that it had to carry out additional social services and, therefore, had to break a promise not to increase taxation. It should have thought of the cost of those social services before it made its promise. He stated the Minister- should jive some consideration to the small investor in large concerns, and he would also like to protest against the land tax being regarded as an ordinary business expense. Mr Forbes said the Opposition had aot introduced their amendment earlier in the debate with the object of defeating the Government, but more with a view to T'egistering a protest against what they thought was excessive taxation. Mr Kyle expressed the opinion that both the Prime Minister and the Minister of Finance were suffering from "taxitis." If the Government 's present taxation were to be continued no undeveloped land would ever be developed, and he considered the graduated land tax was a most iniquitous one. The Minister of Labour, Hon. H. T. Armstrong, said since this Bill was introduced they had heard some remarkable arguments. When the Opposition had been discussing the Budget they had been very worried on behalf of the small man. Under the present Bill they were expressing concern for the big man. Then they urged the Government to save secondary industries and at the same time to abolish Customs taxation. He would ask the Opposition which taxation the present Government had increased. They had reimposed the graduated land tax, but that was the only increase in taxation. Mr S. G. Smith said the Prime Minister should get up and apologise to the publrc for breaking a promise he made to the effect that ha would Teduce taxation, Would he get up and deny ho had promised to Teduce taxation? Mr Savage: I deny it absolutely. Mr Smith ' continued that the reimposition of the graduated land tax was a burden on the small men of the community, both in the cities and country districts, and he urged the Government to lighten the burden of taxation on private enterprise. The Minister of Finance (Hon. Walter Nash) assured the House that the legislation to be brought down in the near future would npt increas® taxation this year. Speaking of the Opposition 's accusation of the Government 's high taxation policy, he said the principle .of taxation in the Bill oi taking money from those who had more than they Tequired and distributing it to those who were not so fortunate was the best type of political economy possible. Members of the Opposition, he said, were running true. to form is opposing the present Bill because by doing so they wero fighting for the wealthy classes, who would greatly benefit by a Teduction of taxation unde] the present measure. The debate wa3 continued by Messr! Meachen, Forbes, Langstone and Bod kin and had not conclude'd at midnight