A GOOD BUDGET

Hokitika Guardian, 6 August 1929, Page 2

A GOOD BUDGET

VIEWS OF MR M’COMBS. \'!. / . ’ ' AMENDMENTS SUGGESTED. .. . ’ i WELLINGTON, August 3. “I think on the whole it is a very good Budget,” states Mr M’Combs, who,'' as a representative Labour member, was asked for his opinion. “I was never in favour of a primage duty (because it is indiscriminate in its operation and infringes the principle of a free breakfast table. The proposal to' double the primage duty is, therefore, unwelcome. Money could Ibe obtained more satisfactorily by increasing the protective duties. In 1927 the primage duty amounted to £414,325, levied indiscrimi-rfately on all articles coming into the Dominion, and the Government’s proposal now is to double the amount of this duty. I realise that Sir Joseph Ward requires additional revenue and in the circumstances there is little use in reminding him that he . promised to reduce taxation. I would suggest, however, that a preferable way to raise an equivalent of the total amount 6f the primage duty would be to impose a super duty on motorcars and all other articles which for adequate reasons Parliament has placed on the dutiable lists. If the present' primage duty were abolished and a super duty imposed, £828,660 would be needed. If Customs and excise duties were all increased by 10 per cent, such a super tax would yield £886,281, .which, is slightly more than would be derived by the total primage duty. “Super land taxes are a feature of the Budget and.a super Customs duty might very wejl take the place of the. unscientific primage duty. If Customs duties must be increased, let us take advantage of that fact to help the industries of the Dominion. They can be helped in two ways; the removal of - the primage duty woujd enable them to get raw materials-apd chemicals absolutely free of all duty and the super duty would give added protectibnVto the local manufacturer. The super dqty would be . easier f 'to collect,'-than the primage: duty, because it would only,be imposed on. articles already ’dutiable, the duty is 10 per cqnt the super duty would be 1 per cent. Where ' the duty is 30 - per cent the super duty would be 3 per pent. Where we have the preferential duty against certain foreign goods of 50 per cent, the super duty would be 6 per dent. “The duty on foreign motor-cars would be increased 'by 3£ to 5 per cent. By- removing the primage duty our own manufacturers would get their raw materials, chemicals and machinery, hows ,on the; so-called free list, absolutely free. By * removing the primage dutyl and substituting a super duty, Sir- Joseph Ward couldclaim that the brtoakfast table had become free, indeed. Free from all duty including primage. Cotton piece goods, household linens, glass, china, household ironmongery, linoleums and certain household furnishings, and a host of other common necessities, now on the so-called free list, would become free,:, indeed, whereas the latest proposal is to double the primage now levied on these goods. It is idle to pretend that the' importers couia pay the primage which will amount to £828,281, or even half the amount, out of their own pockets. They will pass it on with added profits. Daily machinery,, corn, sacks, wool packs and a number of other articles used by farmers would come in free of primage duty because they are now on the so-called free list. It would be impossible to enumerate all the items in the food list which would be made free of all duty—currants, dates, figs, prunes, raisins, rice, treacle, cream of tartar, etc. All this could be accomplished by substituting a super duty for the present indiscriminate primage duty. Instead of killing two birds only, Sir Joseph Ward would be killing a whole flock of birds with one stone—a super duty.”