DOMINION FINANCE.

Taranaki Daily News, 11 October 1921, Page 5

DOMINION FINANCE.

NECESSITY FOR ECONOMY. FARMERS DISCUSS PROBLEM. / BURDEN OF TAXATION. - By Telegraph.—Press Association. Wellington, Last Night. Preceding the resolution, passed by the executive of the Farmers’ Union on civil service retrenchment, there was a vigorous discussion on the financial condition of the country. Captain Colbeck pointed out that taxa tion had increased from £5 10s Id per head in 1914 to £l9 17s 2d per head to-day, which was practically £lOO per annum or the average family of five. Owing to the income tax, if the financial companies wanted to make 6 $ per cent, they must charge farmers at least 12J per cent. When the Moratorium lapsed 1 where were they going to get money to clear the mortgages? It was not thinkable that farmers could pay 12£ per cent. The railways were not paying, the Post and Telegraph Office only paid working expenses, and the revenue was falling. He did not believe one half of last year’s income tax would be collected. Next year he was sure many farmers could not pay their taxes, for only two branches were giving any return. He urged that the Government must reduce taxation by reducing expenses and civil servants must share in the sacrifices.

Mr. W. J. Polson, in support of this, quoted figures to show that the Government departments were mostly increasing their staffs and all were increasing their expenditure, but some speakers pointed out that the civil servants were the last people to receive increases, and should not be singled out. Wages were far too high, and a reduction was the only possible thing. It was then argued that the Arbitration Court fixed wages, and the farmers could not help themselves. The Government was criticised for not facing the position. One speaker said it seemed to be apathetic and asleep. Speaking later on, Mr. Polson said it was true that there was a decided scare in the country, which did not appear to realise the situation, although it was desperate as far as a large majority of the producers were concerned. Neither did the Government realise the position.

The following motion was then carried: “That the executive of the New Zealand Farmers’ Union urge that, owing to the difficult times through which we are passing, it is essential that taxation should be reduced, and as this cannot be done without reducing the cost of administration, drastic retrenchment should be made in departmental expenditure, and that civil servants should be asked to share in the general sacrifice.”

A deputation will wait on the Government to bring the resolution under notice,

DEMAND FOR RETRENCHMENT. DRASTIC “CUT” URGED. ATTACK ON CIVIL SERVICE. Wellington, Oct. 10. The necessity for the Government to introduce without delay a system of drastic retrenchment in the Civil Service, in order to effect a reduction in taxation, was urged by Captain F. B. Colbeck, vice-president of the New Zeeland Farmers’ Union, at a meeting of the Dominion executive of the union. He said that in the Railways Department the idee of retrenchment was to cut down the service. That was not the way to retrench; it was the way to lose more money. Not only must the Civil Service share in the sacrifice, but everybody else. Only one or two branches of the farming industry were paying anything at all, but the cost of running the industry had not decreased one iota. The sheep farmer was getting nothing and the sheep farmers calling was gone. The Civil Service was overgrown.

Mr. W. J. Polson, president, quoted figures compiled by the Taxpayers’ Association, showing the increases that had taken place in the Government departments. Mr. Polson said it was time there was a decided scare in the Dominion. The country did not appear to realise the situation, which was desperate so far as the large majority of producers was concerned. Many farmers simply could not pay the taxation. They must have a reduction and retrenchment.

The following resolution w carried: “That the executive of the New Zealand Farmers’ Union urges that, owing to the difficulties through which we are passing, it is cs ntial that taxation should be reduced, and, as this cannot be done without reducing the cost of administration, drastic retrenchment be made in departmental expenditure, and that Civil Servants be asked to share in the general sacrifice.”