The Budget.

Hokitika Guardian, 19 August 1922, Page 1

The Budget.

BUSINESS MAN’S CRITICISM. (Lyttelton Times). “Most disappointing,” was the comment of a well-known Christchurch business man, when seen yesterday and asked for an opinion on the Budget. “The outstanding item of interest in the whole Budget from the point of view of tho general public is a little table showing the growth of expenditure since the year 1913-1914,” he said. “In that year the expenditure was £11,825,864. In 1921-1922 the expenditure was £28,46(5,838. In the interval the charge for interest and sinking fund bn tiie public debt had increased from £2,708,782 to £10,857,185. Allowing for this increase, and setting it on one side, the ordinary expenditure of the country has increased from a little over £9,000,000 to £17,500,000—an increase of very nearly 90 per cent. In the same period the population has increased by less than 20 per cent. < “The fact that faces everybody is this: that while many departments are doing less business than formerly, they are carrying larger staffs; that the number of Ministers has been greatly increased; and that the number of departments has greatly increased. The result is that the country has to pay the salaries of more Ministers, more heads of departments, more sub-heads of departments, more chief clerks and of more secretaries. Nobody- acquainted with the manner in which the work of the country is being done would suggest for a minute that it is done more efficiently or more thoroughly than used to be the case prior to the war. “Personally, I have had a great deal of faith in the ability of the Prime Minister to bring about a tetter state of affairs; but like many another man, Tam bitterly disappointed. The busi ness community is crying out for relief from the burden of taxation that is crippling industry -and commerce. There is no possibility of tho normal expansion that shoUld have come after the inevitable stagnation of the war period. Instead of setting to work to help the business community to increase production the Government is pursuing a policy- of shackling industry and commerce; and it holds out no hope of release. “The public do not realise the enormous extent io which the income tax and other taxation are responsible for the high cost of living. Company taxation is more oppressive in this..country than in any other country in the world. It is quite impossible for anytrading company in New Zealand to build up reserves of savings with which to finance tho expansion wf business to meet the growing population. Savings for investment in industrial expansion are now non-existent, this fact seems to have teen ignored completely by the Prime Munster, possibly because he is farm and not city- bred. But one would have thought that his advisers —who must he acquainted with tho position—would have led him in the right direction.

“The Budget is the most disappointing T have read for thirty years,” continued the speaker, “it comes as a far greater shock than did the radical Budgets of the early 90’s, when the socialistic tendencies of tho new Lib-eral-Labour combination filled the whole business world with alarm.

“You may take it from me that the business community of New Zealand has a very sick feqling this morning.” be concluded.