The War Tax

Taranaki Daily News, Volume LVII, Issue 305, 3 June 1915, Page 4

The War Tax

STATEMENT BY THE MINISTER. ■ WAR EXPENDITURE LARGER, TAXPAYER WILL PAY MOREMONEY FOR PUBLIC WORKS, • By Telegraph.—Press Association, Wellington, Last Night. The Minister of Finance (the Hon. Jas. Allen) informed a Tiines reporter this evening tluit the intentions of the Government with regard to the possible war taxation could not be disclosed until Parliament was in session and the necessary financial measures were ready for its consideration. The war expenditure was very heavy, and it was growing, while at the same time there was certain loss in Customs revenue as a result of disturbed conditions brought about by the war. Just what the demands upon the country were going to he, it was too early to say. "The question of the war taxation hangs upon another question—the duration of the war," said the Minister. "We cannot say yet what the cost of the war as far as New Zealand is concerned is going to amount to. If the struggle continues for another twelve months the cost to this country will be very great. I stated some time ago that our war expenditure amounted to» £300,000 a month, and it certainly has increased substantially since then. We have an increased number of men in the field and in training, we are equipping hospitals, despatching nurses, making contributions to the Belgian Relief Fund (at the rate of .€120,000 a vear), and so on, in addition to paying interest on the war loan already liii "1 Then we have got to make provision for the payment of pensions and for the care of the wounded. The. revenue has got to bear a share of these charges. There is quite a reasonable hope for the taxpayer that he will have a littlo more topay." Mr. Allen added: "As far as our general Una nee is concerned, the position Is quite satisfactory. The (Government is still able to borrow for war purpo3es at the low rate paid by the Mother Country. Our authorities for borrowing' are nearly exhausted, and we shall haveto ask Parliament to make additional provision for war expenditure when the' session opens. We are borrowing a certain amount of money within the country by providing investment for the surplus funds of the Post Office Savings Bank. The fluids of that bank havemaintained their buoyancy in ' a mostgratifying way. The bank has never been in a better financial position than during the last six months. We have been able to meet the requirements of the Dominion with regard to public works in a satisfactory manner, and that - portion of the national finance is still in a sound position. As far as I can see we shall have no difficult'- in finding the money required for publia works during the next six months. One cannot look much further than that at the present juncture, since so much depends on the duration of the war, but I do not anticipate any shortage of money for public works this year at any rate." MR. C. W. RUSSELL'S CRITICISM. , i MR. G. W. RUSSELL'S CRITICISM. ' THE GOVERNMENT'S ATTITUDE, : In the course of his address at Wal« tara last evening, Mr. G. W. Russell, M.P., strongly criticised tho Government's indecision in the question of the imposition of a war tax. In the early stages of the war, declared 'Mr. Russell, both the Prime Minister and the Minister of Finance had stated that a war tax would be necessary, but when the Dunedin by-eleetion was approaching they declared that it would not be necessary. Later they discovered that the war tax would be absolutely necessary after all. Mr. Allen had, apparently, got the country into a financial mess, and had to change his opinion. In that evening's paper, however, Mr. Massey, with two by-elections proceeding and fearing to lose votes, had again declared that he did not know. what all the talk of a war tax was about. There would be no necessity, , for it, but they ' might possibly • have to put a slight increase on some existing taxes. Why did the Government not adopt a. statesmanlike attitude and put on a war tax on a broad and national basis? The Government, Mr. Russell said, should endeavor to levy this war taxation on those who were drawing large incomes through the causes of the war. It should not, at any rate, be placed on the working people, who were already feeling the very high prices which are being charged for food and necessary commodities in" cvery-day use.