The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 16, 1931. EARTHQUAKE FINANCE.

Hokitika Guardian, 16 March 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 16, 1931. EARTHQUAKE FINANCE.

Tins Government lms announced a bold and comprehensive policy of earthquake finance, It is proposed to take £l,500,0110 from the Government's reserve fund held in London, and to divide if into two portions. A million and a quarter will lie devoted to assisting, by way of grants or loans, companies and individuals who have suffered by ilie earthquake, and the remaining quarter of a million will he lent to local authorities to restore essential services. The Government recognises thaL this will be insulficient; additional provision for help will have to he made in next year’s borrowing arrangements. It is, however, a good start. Taking thi> money from the reserve in London avoids the uncertainty connected with raising a loan. Of course, the real difficulty will begin when this and other money lias to he allocated. The Government cannot help everybody up to the full amount of loss. In some cases victims will be aide to finance themselves without any help; in others varying degrees of assistance will he required. Every rare must lie taken lo avoid on the one hand exploitation of the fund, and on the other harsh treatment of the deserving. To restore the money taken from the reserve fund, and to build up eventually n reserve against earthquakes and other national disaster, the Government proposes to levy a tax of Is 6d per. cent, on all insurable property in the Dominion. The gross amount of insurance cover in force in New Zealand at the end of 1.929 was £424,000,000. so that the proposed tax will yield well over £300,. 9(10 n year, and the reserve in London could lie restored in five years. The Government's statement- that “those who carry their own risks” will also he taxed on the insurable value of their property may lie taken to mean that no person who does not- insure his dwellings or business premises will he allowed to escape the levy. If this is so, the levy will he universal. There is much to lie said for such a method of taxation for this special purpose, and for establishing a fund to meet similar liabilities in the future. The levy will fall on tic kind of nvo-'n-L- tl"“' suffers, and will be spread widely. Jfc must not be overlooked, however, that though special taxation is inevitable and the Government’s proposals are siMintl, another £300,000 is to lie added to the taxation of the country, and this <loos not complete the programme of ea"ihquake assistance. To moot this and other extra taxation two policies must- be pursued energetically. The country must he made to produce more, and .wasteful public expenditure of all kinds Jtmst he rigorously cut down.