RAISING REVENUE

Ashburton Guardian, Volume 51, Issue 128, 12 March 1931, Page 2

RAISING REVENUE

SUPER-TAX AND DEATH DUTIES.

LABOUR LEADER’S ADVOCACY. (Abridged from Press Association.) WELLINGTON, Alarch 11. Increased death duties and supertax were advocated by the leader of the Labour Party (Air H. E. Holland) in an address to-night, as a means of securing revenue to make up the anticipated shortage of £4,500,U00 at the end of the financial year. ' Explaining the Labour attitude towards the Government’s economic proposals, to a crowded meeting at the Town Hall, Air Holland stated that the Labour Party would fight wage reduction to the last ditch and use every form the House allowed to achieve that end. He said his party stood for a /special moratorium that would give some measure of protection to mortgagors during the present crisis. Every seat in the body of the hall and galleries was occupied, wlijle Air Holland's Parliamentary colleagues and officials of the Labour movement occupied seats on the platform. Air P. Eraser, AI.P. for Wellington Central, presided. Generally speaking, Air Holland received an attentive hearing, his remarks being frequently punctuated with applause. One or two persistent interjeetors made thqir presence felt, and one made such a nuisance of himself that he was removed by the police, -v ' Mr Holland spoke for an hour and a-half. At the conclusion of the address Air R. Semple, AI.P., moved a u motion expressing confidence in the Labour Party’s policy, and pledging support for the party in opposing the Government’s wage and salary reduction policy./ Tliis was seconded by Mr i R. McKeen, M.P., and carried amid applause.

“Financial Dictators.” Air Holland remarked that it was unnecessary for him to remind public servants and wage workers that they were about to pay a heavy price for the votes cast by a huge section of them in, 1925 and 1928. “It is open to any party to review and revise its programme,” said Air Holland, “but no party is entitled to continue in office when it has jettisoned almost every plank in the programme on which it was elected.” Air Holland mentioned that the Hon. E. A. Ransom had told the House less than a year ago’ that it was not the policy of the United Government Jo cut salaries or to discharge employees. Before his departure for the Imperial Conference, the Prime Minister had said there would lie no wage reduction, but on his return Mr Forbes proclaimed wage reduction. The reason was that Sir Otto Niemeyei had come to New Zealand with a message from the financial dictators to reduce tlie wages of the workers. When Air Forbes was at Home he had that message supplemented there. “Apparently interest is to be sacred,” continued Air Holland, “but no agreement between employers and employees is to be treated as such. The 'Labour Party agree that the Budgetshould he balanced, but we do not agree that the wages of the workers should be levied upon to make up the shortage. The Public Service is to be asked to find .£1,500,000 out of the £4,500,000 shortage. The Labour Party holds that the proper method J to make up the necessary money qs a super-tax and substantial increases in death dui-.es.” _ Air Holland added that while the Labour Party did not -favour wage reductions, it was fair to suggest that e-en if reductions were necessary it was a lop-sided arrangement that would take 10 per cent, off every salary • without making a raid on high salaries first. Mr Coates was not in the happiest position, because his distinguished Conservative colleague, Sir Francis Bell, had now come to do penance for one ot his many sins, incidentally to that the Labour Party was right in 1922. Mr Holland was waiting, he said, to hear Air Coates’s answer. Air Holland'said he ventured to say there w'as not a working farmei in lus constituency who wanted to see reduced wages. When it came to wages reduction the Prime Alinister was definite and emphatic, but it was in a different tone ho talked about interest - rates. Apologetically Air* Forbes made what he termed an earnest appeal to banks and money-lenders tp review each individual case. A reduction oi 2 per cent., .even 1 per cent., in the rate of interest would bring an> enormously greater measure ot relief to ■bona 'fide working farmers than any system cf wage reductions could giv e.

A Moratorium. The Labour Party stood for a special moratorium in connection with the present crisis. Legislation should be passed during the short session, which weidd give some protection to debtors. Conditional legislation should be passed which would include authority to set up a tribunal which would be representative cf th© Government and other interests involved, such tribunal to have power to deal with eases on their merits. ‘‘lt is not the desire of the Labour Party to assist people m evading legitimate financial obligations, but it will be obvious to everyone that we are passing through abnormal times which demand special efforts on our part to save people from immediate disaster,” said Mr Holland. “A moratorium alone without any other objective would be useless, probably harmful. Meantime legitimate cases ot hardship should he carefully and definitely dealt with.” , The Labour Party held that the Dominion’s credit should be mobilised. It was done in the days of the war. The Labour Party stood for a state bank for the purpose of controlling credit, finance and for the purpose: or reducing interest rates. It aimed at the nationalisation of the banking system: Public control of the organisation of credit was far better than die dictatorship of banking institutions. Referring to railway losses, Mr Holland said his party was out for _ the co-ordination of the transport services, particulnrlv. railway motor services. Neither the Coates nor the Forbes Government had shown any capaeit\ for co-ordinating these services. .Mr Holland contended there could be no non-political control so long as Parliament had to vote money lor ue railways.-'