WELLINGTON NEWS

Hokitika Guardian, 14 February 1928, Page 4

WELLINGTON NEWS

REVENUE AND TAXATION. (Special to “ Guardian WELLINGTON. Feb. 11. The Public Accounts for the 9 months ended December ill have been published and show the usual movements. The revenue amounted to C 10,138,876, which shows an increase of £10,656. The increase is very small and increases are shown by two items, viz., namely, stamps and death duties and interest on railways capital liability, but there were decreases in Customs, Post and Telegraph and Land Tax. The decrease in customs revenue reflects the diminishing imports and this was budgeted for. The revenue, as we have said, shows a- very small increase, hut the expenditure shows a substantial increase. The permanent appropriation? totalled £11,208.028 as compared with £10,023,514 in the corresponding term of the previous year. An increase of £585.414. Tile annual appropriations totalled £7,025,289 as compared with £6,998,230. an increase of £27.059. the total increase under the two heads being £612,473. The chief increase in the permanent appropriations was in interest, which accounted for £124,727. and under special act £153,568. The other item is a repayment of public debt amounting to £295,000. The debt is being steadily increased by the growth of the payment of interest and under special acts. We can see no easing of these payments and the community must submit to increased taxation. Under annual appropriation there arc decreases only in Public lliuihlings and Naval Defence, but there are increases in the Cook Island Defence Department, Department of Agriculture, Department of Education, and Department of Scientific and Industrial 'Research. We can overlook the latter because it is a new and necessary department, but the increase in education of £15,223 is excessive. There is no doubt we are paying very heavily for our education system and it is doubtful if we are getting lull value for our money. The expenditure it will he seen is over £2.1100,000 in excess of revenue, hut of course in the last quarter of the financial year the revenue comes in heavily through the income tax and it is just possible that the deficit of £2.000,000 will he recovered, hut if it is not more taxation will ho necessary and this will go hard with the community. It is imperative I hat something will have to he done for the unemployed which promises to lie more intense than ever, and palliatives will again he tried by tbe Government. The Government method of meeting this is by borrowing from London, and by getting tbe British investor to finance our unemployed. But it is only right to say that unemployment is world wide, even America, that country of extreme wealth, there are said u ,‘ he lour million of unemployed. Nowhere, except perhaps in England, js the position being laced, and there the transfer of the unemployed Irom the localities where there is some chance of their getting work is being tried. The New Zealand method of borrowing to keep the unemployed at work is wrong in principle, and what is needed is a reduction by some gradual scale in taxation. In 1900 the State taxation was equal to £3 16s 10<1 pei head of population, and in 1926 it was £l2 17s lid per head, while local body rates rose from 17s 8d to £3 11s 4d pet bead, the total being £ls 19s 3d per bead of population. True, the production per head increased Irom £39 Bis 7d to £B4 l9s 2d. but the increase in taxation was relatively greater and this is where the shoe pinches. Until the people insist upon a reduction nothing will be done.