‘Revenue Raid,’ Says Mr. Coates of Budget

Sun (Auckland), Volume III, Issue 748, 22 August 1929, Page 7

‘Revenue Raid,’ Says Mr. Coates of Budget

TAX PLANS JJHTICISED DEFICIT AS EXCUSE (The SUN’S Parliamentary Reporter) PARLIAMENT BLDGS., Wed. Pointing out that Sir Joseph Ward, in his search for additional revenue, had embarked on a raiding expedition and had encroached upon the funds of some of the State Departments, the Leader of the Opposition, the Rt. Hon. J. G. Coates, suggested tonight that Sir Joseph Ward might have gone a step further and utilised theprofits from the Post Office, and thus practically eliminated the deficit. “I think the Prime Minister has far overtaken the deficit and has used it to cover up many of the promises he made during the election,” said Mr. Coates. He added that he would have preferred Sir Joseph Ward to have said: “I find on examination that it is not possible for me to carry out the promises I have made.” The Reform Party, said Mr. Coates, had offered to assist and support the Government, but instead of this action being appreciated there was criticism all the time of the Budget efficiency of the State departments. The Prime Minister had included in this year’s figures £156,000 of interest on the renewal of loans. Was he justified in that when it was remembered that the loans falling due were renewed before it was necessary, and quite rightly so, to take advantage of the market. At the same time was the Prime Minister justified in charging up that sum to the present Budget? “It had to be paid for,” interjected Sir Joseph Ward. Mr. Coates: When the Prime Minister replies I hope he will refer directly to that point. HIGHWAYS RAID In regard to the proposal to discontinue the grant of £35,000 to the Main Highways funds, Mr. Coates said that he considered the action a distinct breach of faith. The Prime Minister had gone out on a raiding expedition. If he were going out to raid, let him raid. For instance, there was the Post Office account. Mr. Coates considered that Sir Joseph Ward could have fixed the amount to be paid to the depreciation account, and then applied the balance of the profit to off-set the deficit and remove the necessity for imposing increased taxation. The Prime Minister: But wouldn’t it be bad finance? Mr. Coates: I think on examination he would have found that he would be justified in taking a portion of it. and would practically have wiped off the deficit. Was it a time for increased taxation? Voices: No. Mr. Coates went on to refer to the figures for the first quarter, which had shown that there was going to be a great increase in imports this year. The indications were that the prices for wool, lamb and mutton would not be better than last year. Prices for butter and cheese were also considerably down. He believed that if it were necessary to collect further revenue, an entirely different method should he followed than that indicated in the Budget. ATTACK ON LAND VALUES It was clear that the Prime Minister, in his anxiety to get the price of land down and force land into the market, had failed to see the effects of his proposals. They amounted to a single tax in cases where an encumbrance rested on property, and in certain cases it would be impossible for men to carry oil. The whole* of their profit for the last year was being taken away. If it affected only one man in the country. Parliament had to be careful to uphold the reputation of all British Parliaments for fairness, equity and justice to every citizen. The Government had to consider whether some of the large properties would be suitable for settlement, when they were forced on the market. He believed in some cases that it would be hopeless to attempt to cut up such properties. In many cases the taxation proposals would have the effect of taking away a man’s security, and his mortgagee would have no further faith in him. If the people of New Zealand wanted laud for closer settlement, Mr. Coates agreed that nothing would be allowed to stand in the way, but always a definitely fair attitude should be taken toward the individual. Mr. W. E. Parry (Auckland Central) : What about the hardship Mr. Coates: That places the responsibility on the Taxation Department, and that is not fair.