INCREASED TAXATION.

Taihape Daily Times, Volume 7, Issue 137, 12 February 1915, Page 7

INCREASED TAXATION.

TO MEET WAR EXPENDITURE

THE GOVERNMENT'S DUTY. AUCKLAND, Feb 11. A question as to whether the Government, contemplates an Increase o" the taxation on account cf the Dominion’s war expenditure was l put to the Prime Minister by a “Herald” representative this evening’. “Increased revenue will undoubtedly he necessary,” said Mr Massey. “It is quite impossible yet to say what the war will cost New Zealand, but we must have sujlicieut revenue to pay the interest and to privide sinking - funds for the war leans. We do not want to take more revenue from the public than is absolutely necessary lor the carrying on of the business of the country and doing - our duty to the Empire. Every increase of taxation means lessening the spending power cf the people and interfering with what may be called the wages fund, and I need hardly say that we do not want to interfere with either one or the other any more than we can possibly help. The revenue has kept up wonderfully well so far, and the indications go to show that there is a probability of it remainiMg good right through the present year. The Post Office Savings Bank returns are particularly satisfactory, but when increased expenditure takes place there must be increased revenue. We shall not ask for any mere than is absolutely necessary, but it is impossible just at present to make an accurate estimate of the amount that will be required.”

In reply to a further question as to the form that the increased taxation may be expected to take, Mr Massey said that he could give no information on that point at present. “1 can only say,” he said, “that when the time comes we shall ask the people to contribute in proportion to their ability.” Mr Massey added; “New Zealand has felt the pinch of the war probably less than any other country in His Majesty’s Dominions. There is no occasion for any anxiety. The prices of our staple products are so good that I believe the present prosperity will be continued right through. There is a feeling of confidence ail over the Dominion. Employment is plentiful just at present, and the Government will endeavour to keep the public works going so as to provide employment for those who otherwise may be unemployed. The public works are now being kept fully up to the usual standard.

THE COST OF LIVING. WELLINGTON, Feb 11. A public meeting in the Town Hall to discuss the increasing cost of living was called by the Labour Representation Committee, and the following resolutions were carried: “That in view of the enormous increase in prices on commodities of common necessity, we affirm that an urgent need obtains for drastic action to be taken by the Government in the direction cf establishing a permanent and independent court with power to enforce maximum prices of sale, also the institution of direct State control of pro. duction and distribution of such staple commodities as wheat, flour, meat, and other common necessities produced in the Dominion ” On the motion of Mr J. Thorn, it was resolved that in view cf the tact that the burden of increased prices falls on the workers, the Arbitration Court should review asl existing awards and grant increases of wages commensurate with the cost of living.