WELLINGTON NOTES.

Hokitika Guardian, 27 June 1924, Page 1

WELLINGTON NOTES.

THE MYSTERIOUS LEADER

(Special to “Guardian”.)

WELLINGTON, June 25

I he Southern Liberals who appear to he anxious to form a new political party out of the obi Liberal Party and captures from Deform and Labour have aroused a good deal of curiosity in Wellington, more particularly as to the identity ot the mysterious new leader. At first it was thought here that Mr M. I). Hunt who is well known in ■‘southland, and who appears to have some slight political leanings, was the intended leader, hut apparently rumour was astray in this. Mr T. M. Wilford is very definite in his statement that Mr I''. .1. Dolleston, the member for Timaru, is the prospective leader of the new party if it materialises, and that is bv no means impossible for many Auckland men hare expressed themselves in fifvour of the party and there are not a few in Wellington who Would he glad to join up. f his appears to he the psychology o' politics the world over. We uanl a change here, but we do not want the old parties. wo want something new, pristine, and willing to adhere to principles instead of clinging to party right or wrong. Drastic political changes have taken place in all countries and New Zealand must have a change. Unless a new party comes into existence tiio swing of the politic-id pendulum will ho rather to Liberal or Labour, most likely to Labour, and that would hardly ho good for the country. A XRW PARTY X KKDKD.

The views of many business men, who are anxious only tor the progress of New Zealand and sound Govornment, is that a new party unlramelled by the errors ami blunders of the past is needed and would he welcomed by many if not the most of the rightthinking people in the country. It is generally recognised that the .Massey Government will lose control after tho next election, the huge civil service vole will make that certain, and if the electors have no cliovie. hut must accept Liberal and Labour then the latter will gel the verdict. A new parly will give tin l electors just the choice they want - souiet liing new. a party without entanglements, withottl a vicious political record. It seems to he the psychological moment for launching a new party, hut the lender must lie acceptable, he must- he young and vigorous, and sane in his political views. The belief is held here that if Mr F. .1. Itolleston is mimed as tho leader and accepts the position he would ha .supported throughout tho country. However, the next week or two should make the situation clear. TAXATION PROBLE.MS.

The papers here are fall of forecasts of the kind and volume of legislation to he submitted to Parliament. It is generally agreed that Mr MtisSev will use tho soft pedal and try to avoid introducing contentious measures until tit - last. None of the papers say anything about taxation and yet a reduction in taxation has been promised by the Prime Minister. The report of the Taxation Commission which has been in the hands of the Government for about a month is believed to he unanimous in respect lo whatever recommendations have been made, ami for this reason is hound to he respected. The connlr.v will need and demand a retd reduction in taxation, anil not. a« was the ease Iji-1 year, .a readjustment. In the p;rst financial year the revenue obtained from taxation amounted to C 1(5. Ilf's.AS:?, as compared with L’lo.-btll.L’S's in the previous year, an increase of L>.!1,25l or 5 1-3 per <ent. The land tax’ showed a reduction of ClloJlJ'J; income t.ix a reduction of C-VI. |(i(t. and death duties a reduction of l , 2'. i !t. < 53. or a total of L’11i5.2b2. but against that the Customs revenue increased hv L’l ,225,55!1 t and other taxation sources yielded C73jifli>, a total increase of C1.,2!)f),.V*5. No wonder tho Finance Minister had so huge a surplus as Cl, ft 12,0(1. In 11)21-22. tho Customs revenue amounted to Co.o’i 1..’U1 and represented ■>l per cent of th- revenue obtained from taxation: ill the following year the revenue irom Customs increased to Cti.dll.l2o, and the proportion to I2J per cent and in the year just ended the Customs revenue was Ci.S'TUJItU. or Is* per cent. In the year of excessive imports, that is 15)20-21. the Customs revenue was ,CS,7JO.2.'»<) or .‘!ot per cent. The income lax dropped Irom Ci>JI‘J2,!)ST, or :tf>; per cent in 1021-22 to C.’IJSI .0.12, or I s per cent. The reason why the income tax falls so heavily is because the hulk of Hie amount i- paid by a comparatively few, who, ol course, pass it on. It is Hie Customs, however, that cause the cost of living to lise. and there will he additions to the Customs thi. session for the wheat growers are promised protection, and the preference on British goods is to lie adjusted in some respects. Presently there must lie a vigorous assault on the cost of living, for if the prices of our primary products recede, then it will he necessary to reduce the costs of production and that can only he done by reducing the cost of living and with it money wages, also marketing charges.