Grave. Financial Position

Hokitika Guardian, 4 July 1922, Page 4

Grave. Financial Position

SPEECH BY MR MASSEY. WELLINGTON, June 30 "This is our worst year,” was the declaration of the Prime Minister in the course of a long important speed} in the House to-dav. It followed the moving of the Labour amendment strongly criticising reductions of public servants’ bonuses. Mr Massey’s reply, in brief, was that the financial position is such that there are only three possibilities—increase taxation, discharge public servants, or carry on the out. He is prepared to follow the alternative. Dealing with taxation, tile Prime Minister declared that if there was one thing he desired more than any other it was to decrease taxation, for this was the biggest difficulty the Government had to face. The people were hearing such a heavy burden that it ought to he reduced at the earliest possible moment, “and that,” said Mr Massey, “is what I want to do. I know the leader of the Labour Party would not reduce taxation by a single copper.” ' Mr Holland: Not on the wealthy. Mr Massey: I don’t know •if there are many wealthy men after all. 1 have heard so much about financial troubles that I fear there are not many wealthy people left. I know there are many people paying heavy taxation, and that as a result it is causing unemployment, as they would otherwise have spent this money on labour. This, he added, was one of the reasons for his anxiety to reduce taxation, though lie was sorry to say this prospect was not yet in sight. He did not know what would he the position three months hence, hut ho hoped it would he such ns would enable u substantial reduction to he made in taxation. HEAVY AVAR BURDENS. Mr Massey produced a Treasury memorandum showing that the expenditure for the last financial year was £15.641,000 in excess of that for the venr 1013-11. All Wilford : The war? Air Alasscy : A'es. most of it is directly rluc to the war. The Prime Alinister gave tilt? following details of increases making up this huge total :—■ .£ Interest and sinking fund on war loans 4.007,000 War pensions ].7‘i3,o(M Salaries and wages bonus ... 4,000,000 Increased cost coal, mate- 1 rial and supplies £,000,000 Bonuses to pensioners 400,000 Increased subsidies, hospital j hoards and local author- | ities 3V.),0ll!l ' Payment to reduce local price of butter in 10'Jl ... £IO,OOO Air Wilford, Leader of the Opposition, followed with a dear exposition of his position. He saitl the Reform Party’s policy in retrenchment- was to make a cut from general manager to office hoy. j The Lamottr Party's policy was no cut at. all. not even for the generaf manager. The policy of the Liberal Party | wa> to wait until the Bill reached com-I mil tee. then to vote for reductions insalaries of .Ministers, members and general manager, but to do. its best to pro vent any cut in salaries below and in eluding £,'i£it. On all divisions the,\ voted on tliis line, in favour of tin lower paid men, and to-day be was firmly of opinion, despite tbe .statement of the Prime Alinister, which wa: certainly very woeful so far as the country’s finance was concerned, that no argument in favour contained, ol making this particular cut against a particular section of the people of the country. The Premier’s argujments certainly proved the necessity for grave care in finance, hut not that one' particular section should lie singled out foi slaughter.