HIGHWAYS SUBSIDY AND LAND TAX.

Manawatu Herald, Volume L, Issue 3998, 17 September 1929, Page 3

HIGHWAYS SUBSIDY AND LAND TAX.

PRIME MINISTER’S REPLY TO CHAMBER; OF COMMERCE.

At its last meeting the Foxton Chamber of Commerce passed a resolution expressing its disapproval of the Government’s attitude in regard to the highways subsidy the proposed primeage and land tax proposals. A letter was accordingly forwarded the Prime Minister and the secretary has received the following reply from Sir Joseph Ward: —

“Wiith reference to the resolution referred to in your letter of 30th ultimo, I have to say that- while it is not proposed to make any tralister from the Public Wforks Fund this year, this will not mean any curtailment of the capital allocation to highways, hut merely that the whole of the moneys will be borrowed directly for that purpose, instead of partly through the Public \Yonks ,Fund. The* Highways Board has ample funds for carrying out its programme, which will not be affected by tlie adjustments under reference. In fact, when the Board arranged its programme for the year it was not. aware that these adjustments were contemplated.

“In regard to the primage, duty and the land tax proposals, I’have to point out that additional revenue is necessary to balance the yealr’s accounts, and it is essential that this shquld be done. The increase in the primage duty is considered to be the least disturbing of any possible temporary tax, and, as has been shown in the course of the debate in the House, its effect on individual families will be very small indeed. As to the land tax proposals, in addition to producing additional revenue, these will assist the Government’s land settlement policy. Further, it is genefrnlly recognised that the large estates are not hearing their fair share of taxation.”