The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JULY 24, 1930. ACCORDING TO PROMISE

Hokitika Guardian, 24 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JULY 24, 1930. ACCORDING TO PROMISE

The Minister of Finance acted up to the Prime Minister’s promise. Mr Forbes in his dual capacity earlier predicted more revenue would have to be provided to balance the Budget for March 1931, and he. hinted that more money wuld have to be raised through the Customs. On Tuesday night the Minister sprang something of a surprise on the House by bringing down the necessary 'resolutions to effect his purpose so far as Customs duties are concerned. It is usual to take this step after the reading of the Financial Statement wherein tile pros and cons of the situation are detailed. The Budget speech, it was announced in advance, was ■ to be made on 1 hursclay (this) evening, and probably in the ordinary course there would be a substantial clearance from Bond of dutiable goods on which increases are expected. That move was fully anticipated by the resolutions presented to the House on Tuesday night, fixing the new duties to conform to the Government proposals to raise more revenue. With thi.s explanation, it will be seen that the Government is again acting according to promise, and with the intention of giving the country the best possible service. Mr Forbes has moved as circumspectly as he could, but whatever articles were touched, no

doubt tliere would be alarm expressed from some quarters. Actually, however, the proposed increases are along lines on whidi the increases were perhaps most generally expected. The petrol tax increase is a case in point. For weeks, motorists reading the writing on the wall, have been endeavouring to deter the Government from placing a further tax on petrol. Probably the agitation had some little effect, for the earlier assumption was that the duty would lie fowpcuce, whereas it turns out to he three-pence—<tlie amount accepted a,t the Counties’ Conference by a substantial majority. This class of revenue is collected easily, and apparently is to be devoted to the roads. This extra money will relieve both the public works asd consolidated

funds in respect to raiding, and actually will lie of serviceable interest to local bodies. While the extra petrol tax will increase revenue, the timber duty as increased, will not be so helpful; but, it- should be helpful in stabilising the industry asd providing more and'regular employment for the army of workers, which under normal conditions, can be absorbed. Unfortunately with the depression in Australia, enterprise there is restricted, and the export trade to that- country must suffer greatly. With .so many mills closed in the Dominion, the Government was under an obligation to do something decisive, and the milling industry should he helped by the courage cf the Government In this matter. The various articles otherwise selected for treatment, have been mainly of the luxury order. As wide a discrimination as possible has been used with tins object of tapping items calculated to give the best financial result from an increase of duty. The reciprocal relations with Australia will have been kent in mind evidently, and that was also a wise course. The liquor duties have increased slightly, but not prohibitively, the main object being to secure revenue and not to decrease consumption. The surtax takes the place of the primage duty, hut the object is the same, to, raise more money. Actually this is a further duty and will apnlv very generally to, the Customs tariff. This phase will occasion a g"od deal of criticism, but the basic object is to raise more money so essential for balancing the year’s transactions, and on that account in the absence of something better or more easily bearable, exception is useless. The means nroposed creates a greater spread of the obligations. At the same time the Customs taxation now proposed, probably does not exhaust the Government proposals in the general aim to - balance the Budget, and the speech itself to-night may disclose additional ways arid means of helping the national finances and placing them in that strong and safe situation which is necessary for the well-being of the country at this strained juncture.