A Violent Dislocation of the Public Finances.

Hokitika Guardian, 1 December 1922, Page 1

A Violent Dislocation of the Public Finances.

SHREWD SUMMARY OF PROBABILITIES. “W r e are told” says the “Otago Daily Times” in a cogent fender under date October 19th, 1922 “that at the present time there is an expenditure of seven millions or so per annum upon drink in New Zealand, and that the revenue which accrues in consequence to the State amounts to about two and a half millions. The suggestion is that if these seven million, instead of being spent, on drink, we*e spent on clothing and furniture and boots and shoes, upon theatres and joy-rides and luxuries, the revenue obtained from tlie Government would not he smaller than it now is. We cannot, however, he at all certain about this. High duties are levied upon alcohol, it is very unlikely that the expenditure upon other goods of the amount at present spent oil drink, would yield the State a, revenue nearly equal to that derived by it from the liquor duties. There would, in this event, he a gap in the revenue that would have to he filled by the proceeds of taxation from some other source.

Moreover, it is certain that the im mediate effect of the enactment ol Prohibition would be a rather violent 'dislocation of the public finances. It is because this is recognised liy Mi Massey, who is the Minister responsible for the public finances, that he hinted recently that, if Prohibition was carried it might he necessary that Parliament should meet ill the early months of the year. The Government must he as- secure as possible in its finance, and it cannot safely take the risk of trusting to the loss of revemu upon liquor being straightway made up to it from some other source. It must so regulate its finance ns to ensure that it shall receive the revenue it requires.

It may he surmised, therefore, that the immediate effect of the enactment of Prohibition would he that duties would he increased upon articles such as ten and sugar, which go into general consumption and arc therefore the most dependable sources of revenue, to make good n probable deficiency in revenue. In other words special taxation would would have to he looked for.” Mr Massey ill his election manifesto said that lie hoped to reduce the burden of taxation. The implied doubt as to the feasibility of such a course was quite obviously expressed with a view to the possibility of a Prohibition vote. Mr Massey knows that in such an event it would lie impossible to reduce taxation -or, indeed, to avoid increasing it. Every responsible adult must realise the folly of increasing the cost of living by throwing away liquor revenue. Two and a half millions sterling are paid annually ns a voluntary contribution to natural revenue by consumers of alcohol. No person who objects to paying the taxneed buy the'liquor. But if this large amount is lost to the State through Prohibition, it must he made good by taxes on necessities, which everyone must hoy. Vote Continuance, and keep down taxation and the high cost of living. 01. g* jgasm: