WAR FINANCE

Ashburton Guardian, Volume 60, Issue 104, 12 February 1940, Page 3

WAR FINANCE

NO EXTRA TAX THIS YEAR. UNIVERSAL. SUPERANNUATION. * (Per Press Association). WELLINGTON, February 11. Mr Nash arrived last night from a short- tour of the north after the Waitangi celebrations. He answered a number of questions about the effect of Government actions taken because of New Zealand’s/ participation in the Empire war effort. He said that no extra taxes were contemplated by the Government for the present financial year, and added that the Budget for the next financial year was not completed. He was asked to what extent the petrol rationing would offset the revenue expected from the extra fourpence in tax imposed in the last Budget as a defence tax. He said that 30 per cent Avas the estimated percentage of the curtailment in the use of petrol, but the, sum of this percentage at 4d a gallon Avas not yet lsnoAvri. He Avas also asked whether the prohibition of the import of American motor-cars and the limitation of English models to a small percentage of last year’s figures would cause unemployment in the Hutt motor assembly' plants.

Mr. Nash said that if the Dolninion imported parts for only 30 per cent, of the cars previously imported it Avas unlikely that the same number of men would be employed, but there should be alternative employment available. ■ In reply to a question Avhether the Social Security Act’s provision for the beginning of universal superannuation ori April 1 would be effective in vieAV of the extra expenditure entailed by Avar measures, Mr Nash said that any interference with the Social Security Act had not been considered. The estimated cost of universal superannuation during the next year was not yet available.

Mr Nash was also asked Avhether he wished to mako any reply to a statement from Mr W'- Mnlholland, Dominion president of the NeAV Zealand Farmers’ Union, that the Minister had broken a definite promise by introducing State* purchase of bides. Mr Mulholland had said thatWlr Nash promised that anything not requisitioned by Great Britain would be left a free market. ‘ Mr Nash said he intended to make a full reply to Mr Mulholland later in the Aveek.