MORE TAXES

Rotorua Morning Post, Volume 2, Issue 442, 28 January 1933, Page 5

MORE TAXES

TO MEET DEFICIT MINISTER FORECASTS FURTHER TAXATION NO DETAILS AVAILABLE Wellington, Friday. Concluding his statement upon the revenug position in the House to-day, Mr. Coates said: "To bring the prospective deficit down to, say, what may be regarded as a safe anxount I am afraid there will be j no alternative but to have further recourse to additional taxation. Details of this cannot he given at present as the proposals have not yet been finalised, but I think it will be necessary to find ways and means of raising up to £2,400,000 which, with the other items I have mentioned, will be sufficient to bring the deficit down to about £4,500,000. This will jj mean inereasing our floating debt by , the amount, but against that it should » not be overlooked that the expendi- 1! ture will dnclude provision for £1,400,000 under the Statutory Debt Repayment Scheme. This will mean that the net inerease in debt as a result of the prospective shortage will not he much in excess of £3,000,000, which amount may be considered as safe. That is to say it will not be large enough to in any way endanger the finaneial stability of the country, which must be safeguarded at all costs. The Government have felt obliged in .the general interest of the Dominion to take a course of action of an unprecedented character. This has been done with a clear realisation of the implications and of the difficulties in the way. We are/ confident that the country will recognise, as the days pass, that the deeision made is amply justified.