The Hokitika Guardian FRIDAY, NOVEMBER 18, 1921. THE PRIMIER'S COSTRAL TASK.

Hokitika Guardian, 18 November 1921, Page 2

The Hokitika Guardian FRIDAY, NOVEMBER 18, 1921. THE PRIMIER'S COSTRAL TASK.

Fkom wlmt already lias said *0

Parliament iimeeniing the revision i I the Customs Tariff, it is tolerably -afe to predict there will be a very iiv '■> debate when the Government's proposals ciinie up lor ,-iAiliiuiatioii. During the eoii.se of the Itmlget debate ill ||,in-,, ~i Representatives on 1 uesday night. Mr Gcroe l-’iirbcs and Mr I. aid l-ilt, two very virile members of tie Opposition, gave »"H' indi'at hiii ~f whnl they Mould bn •• to av m, .be Mil.jwcl filer oil. Tin member for i''■ -

run ul made > i -piloted fl'ol si against tlm duly impos'd upon mu'.,. M ile, which be lies,a ibed as the poof man’s light and one nl the necessaries of life. The price of kerosene lie said, already was outrageously high, thanks mainly to the operations of the trust that controlled the distribution of the oil, and now the Government was joining with the trust in raising it still higher. Perhaps Mr For lies was placing more blame than was due upon the shoulders of the trust, the adverse rate of exchange and the big increase in transit charges being largely responsible for the soaring prices ot American goods, but in ally ease this is a most inopportune time to be piling up additional burdens upon the poorer town workers and the back block settlers. Mr Isittls protest, no less emphatic than that of Mr Forbes, was against the taxation imposed upon the necessaries of lile. The tea duty, lie maintained teas a uar measure, and when the wa.' ended the duty should have been removed. To this the Hon. !■:. P, Lee, the Minister of Industries and Commerce interjected that the war burden had not gone, to which the Member for Christchurch North retorted as cpiick as thought: “No. but the war burden did not prevent you taking a big slice off the land tax." a sally that moved both sides of the House to laughter. Rut one cannot help sympathising with Mr Massey in the extremely difficult task he has undertaken in attempting to make the Dominions revenue square with its expenditure. His scheme so far as can he gathered from the scanty information available, is to reduce the annual expenditure by some live millions starling, and to raise some three millions bv additional taxation. The whole of the reduction in expenditure mav not lie realised for two years or more, but the additional taxation will l>e levied forthwith. Meanwhile, Mr Massey is asking for authority to spend some L‘l .SOO.OOO more than was spent last year, with the promise that a considerably larger sum than this will he saved if his eeonopiy measures are accepted by Parliament, .lust how lie is going to make the concessions in income tax lie has promised to the companies, is not clear, but from all accounts this is an obligation demanding bis prompt and earnest attention. The New Zealand Company income tax is not merely the highest

in tlie world. It is so high that many companies me lit fin 11 v staggering miller tlio Imrdi'M. Kven it' they have money for investment on sound mortgage security they cannot lend it. to farmers or other producers at. a lower rate than 12 or 15 per cent, because half their retnr* will he absorbed hv the company income tax. The inevitable result is that la roe sums which should he employed ill helping the New Zealand I‘rodncers through the present crisis are being sent to Australia and other countries, where the income tax does not 4-rush out all enterprise on the part- of the companies. In these circumstances, it seems a little idle to j urge the unhappy producers to maintain a cheerful countenance and to preach optimism to his still more unliapoy neighbour. The position is not desperate but it is so dillienlt we should he much more sanguine of an early escape from our troubles were there half a dozen capable business men in the present I'arliament.