OUR WAR EXPENDITURE.

Taranaki Daily News, Volume LVII, Issue 208, 10 February 1915, Page 5

OUR WAR EXPENDITURE.

STATEMENT BY THE PREMIER.' Auckland, Last Night. The question as whither tile Governmen contemplates an increase of taxation on account of the Dominion's war expenditure was put to the Prime Minister by a Herald representative this evening. "Increased revenue wilL undoubtedly be necessary," said Mr llassey. "It is quito impossible yet to say what- the war will cost New Zealand, but we must have sufficient revenue to pay interest and provide sinking funds for tho war loans. We do not want to take more revenue from the public than is absolutely necessary for 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 of the people, and interfering with what mav be called the wages fund, and I need hardly say that wo 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 co to show that there is a probability of it remaining 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 moro than is absolutely necessary, but it is impossible just at nresent 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 mav l)o expected to take. Mr Massey saiil lie could give no information on that point at present. "I can only say 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 tho Wiir probably less than anv other country in His Majesty's Dominions, and there is no occasion for tin v anxietv. The prices of our staple products are so good that I believe tho nresent prosperity will be continued right thrm-gli. There is a feeling of confidence all over the Dominion. Employment is plentiful just at present, and the Government will endeavour to keep the public works going sn as to provide employment for those who otherwise may be unemployed. Tho public works ai'o now being kept fully up to the usual standard."