WELLINGTON NEWS

Hokitika Guardian, 5 July 1927, Page 4

WELLINGTON NEWS

I NCR EASED TAXATION. (Special to •• Guardian ”.) ' WELLINGTON, July J. -Many of tlie Chambers of Commerce in New Zealand during the past year have urged the Government to reduce taxation, hut instead "1 reduction the outlook is for increase. There is a widespread belief that Ihe ( h.veniineiit will impose fresh burdens, and it is perhaps right the burden of increased taxation should he home by luxuries. Those handling wines and spirits and tobaccos and cigarettes recognise the justice of this and in anticipation of ibis are clearing stocks from bond. Merchants are justified in doing this, for when the increased duties are imposed they, and not the State, will secure the benefit. Hut increased taxation will cover other goods besides wines and spirits and tobacco, and this will mean increasing the cost of living and thus retarding the progress ol the country. There must now follow a determined agitation for economy in government administration, and a commission, not of beads of departments or any civil servants at. all. and see wlml can be done towards economy. Smith Australia lias appointed such a commission, and the commissioners are all business men. Lust year the imports of wines and spirits and tobacco cost tlie country C2.(i55.1di), and ol Lids tobacco accounted for C I ,f>ss.(>l2. The cigarette habit lias extended very much since the war and is now common to both sexes. The imports of cigarettes last year amounted to I ,;TD 1.U07V ) valued at (.'772,01d, and in addition 220..'!751b of fine cut tobacco for cigarettes came into tlie country valued af £98,985, so that to meet the demand of cigarette smokers, importers bad to

spend £871,408. The smokers would of course pay a good deal more, probably not less titan 20 per cent. ’1 be cut tobacco imported apparently lor pipe smokers was l.,»So.i2<ib worth CoKl,(!(!7, and in addition the manufactured or plug tobacco was 800.8171 b worth £195,J0G. Cigars are a very small ilem the. imports last year running into 25,9901 b worth £22.025. There was also imported .‘101.1071b ol unmanufactured tobacco, valued at £10,20(1. The wines and spirits imported last year comprised 1 ,Ri.'1,500

gallons valued at. £OOO.SIB. Whiskery constituted the main item, for the imports amounted to 577,081 gallons vai'ued at £<>10.515. The other items were brandy 71.521 gallons worth £15,017. most of which came from France; gin. schnapps, etc, 102.000 gallons, valued at £81.010; rum 20.-528 gallons, worth £15,590; ale. beer, etc.. 01.0-12 gallons, value £2-1,152; hitters, cordials, ole.. 0.291 gallons worth £7110; sparkling wines. 1501 gallons, valued at £00.890. and 211.771 gallons still wines valued at £120.002. ADVANCES DEPARTMENT. j In the House the other clay tlie Minister of Kina nee was obliged to admit, that there was no money in the Advances Department. A fair amount had been provided so far this year, hut it was dillieult now to provide more. That alfords no consolation to those who had been induced to apply to the department for loan money. Some money would he released when pressure in regard to rural advances was relieved. That seems to be a poor look-out, for the demand for rural advance is likely to continue denliilely. It is, of course, the intention of tlie Government to issue mortgage bonds in connection with rural advances, but there is no guarantee that these bonds wii'l be. taken up at the rate of interest that the Government can alford t 1 offer. Investment money is getting scarce now, am! ibis can be noted in tlie contraction of Stuck Exchange business. It would be dillieult for the Government to raise money in Australia. where the monetary conditions are as had, if not worse, than they are ill New Zealand. It would be unwise to | attempt to float another loan in London this year, at all events the Prime Minister admitted recently that London financiers were averse to lending except for reproductive works. It would j bo far better for the Government and , tlie Advances Department to frankly admit that there is no money available ( for loan purposes, and advise nppli- , cants to seek other sources. This ad- ( vice would be valueless unless the Department put up tlie rates of interest an a parity with those! ruling in the upon market. It seems evident tllntj there must be a curtailment of building , operations in tlie Dominion which must ( result in more men being thrown out. 1 | >f work. With the national income v reduced as compared with last year t Hid verv greatly reduced as compared ( vitli two years ago, it is too much [ in ask that, the country should main- t ain all classes of workers in full work. \ if luvoivl I l.