BURDEN OF TAXATION.

Auckland Star, Volume LIII, Issue 129, 2 June 1922, Page 8

BURDEN OF TAXATION.

REDUCTION PROBLEM THE INCOME TAX REBATE. CAUSES OF THE DEFICIT. ■By TelPsrapb.—Press Association.) IKVERCARGII.L, Thursday. The Prime Minister delivered a political speech in the Municipal Theatre tonight. The Mayor (Mr. .1. F. Lillicrap) presided. The huilding was crowded. Mr. Massey, who was very well received, said the responsibilities of the. country had ben enormously increased by its part in the war. The public debt bad practically doubled during the war period, but they were able to meet their obligations. The cost of the requirements of the chief departments had increased from 100 to 300 per cent. Nothing would benefit the country fo much as a reduction in taxation, which was an enormous burden, but concurrently with the rise of expenditure the national income had decreased. The duty of the Government was to endeavour to make the burden easier. They had to reduce the coat of government, the co=t. of living, and the coat of production, and then followed a reduction of taxation. They must increase the output of the country.

The problem had been tackled, and up to the present not unsuccessfully. They aimed at getting back about half the Public Service bonuses, but he did not know if they could do so. Much had been done, but much, unfortunately, remained to be done.

Th»- last loan was a very satisfactory transaction. It showed the confidence of the British financiers i:i the Dominion. He thought the corner had been turned. Money would be cheaper still, and in his opinion mortgages on broad acres would before long be a fa\ourite security in the Dominion. "WORST YEAR OF ALL." Referring to the rebates on the land and income lax. the Prime Minister said the experiment had been a, great success. The money came in as well as at any time before the slump. He could not say what would be done next year. If h£ could reduce taxation by the amount of the rebate he would be glad to do it. It was possible the rebate system would be continued. He hoped the Taxation Committee now sitting would be able to oiTer useful suggestions.

The present year, from the Government finance point of >iew, was going to bo the worst of all, because the improvement in conditions would not have time to take effect. Die accumulated surpluses carried forward from previous years would be required, and were available. At Feilding he had put it plainly there was a deficiency of £330.000 on" the year's accounts.

Referring to criticism of railway freights, he claimed that those in New Zealand, though high, were the lowest in the Empire. He hoped it would soon be possible to reduce the rates.

Reverting to last year's deficit, Mr. Massey emphasised that they had £.tOO,OOO worth of coal in stock, as a result, of neceeaary importations to keep the railways going. If they had not spent the money on coal they would have had a. surplus. Similarly, if they had not given the taxation rebates they would have had a Hurplue, nut in both instances tlie right thing was done. COST OP SOLDIER SETTLEMENTS. Soldier settlement was costing a very large amount. The settler? had struck hard times, in which many experienced farmers had come to {rrief. Most of the soldiers were triers, and he was cure the majority would face their difficulties and come through. The Government had never turned a "trier"' out, and wa> going to see them through. He urged people not to discourage the soldier, but urge him to stick to his land. When the slump was over and things ecttldd down they would have many thousands of useful settlers as a result of what had been done.

I Dealing with what the country had I done for the returned soldiers, Mr. i Mftssey quoted a return as follows: I-and purchased under the Land for Settlements Act, £3.816,840; advancps for purchases of private or native land, £6,724.149; advances toward the purchase of Crown leasehold, £1,618,930; advances toward the discharge ol mortgages. £433,007; advances for the purchase or erection of town dwellings, £7.747.318. loans for businesses and other financial assistance under the Repatriation Act, £2,107,950; advances for the purchase of stock under the Discharged .Soldiers' Settlement Aft, £3,003,468: total. £28,441,317. Of the amount advanced under the Discharged Soldiers' .Settlement Act for the purchase of homes there had been repaid £1,477,151; of the loans under the Repatriation Act for the establishment of businesses, purchase of furniture, etc., there had been repaid £011,110, making the total repayments £2,388,261. The land held for settlement and ready for selection totalled 430.000 acres. STATE ECONOMIES. Turning to the economics effected by the Oovernmcnt, Mr. Massey read a return showing that the savin? effected under the Consolidated Fund. was £4,592.330, and under other departments and services £1,054,499, a total of £5,646,835. Increased charges had to be met, however, £610,655, scale increases of classified salaries absorbing £226,443. In the course of a brief reference to the coming elections, the Prime Minieter said Mr. Holland had said he would heip Mr. Wilford to put the present Government out on condition that the Liberals did what Labour dictated when they occupied the Treasury benches. Otherwise he would help to keep the Liberals out. That statement, hnd been made in a manly and a straightforward fashion by Mr. Holland in a speech to his constituents, lie himself would not hold office for two minutes longer than he could help if he were dependent upon the support of the extremists. He wished to impress upon the people of the country the importance of stable government until they got through the present crisis. There were only about two men on the Treasury benches now who were with him when they started, but the members of the present Government were of the same characteristics as those who first held office. Their aim throughout had been the same, and he pointed to their record of administration, which he contended entitled the Goveriment to another term of office. The Prime Minister was accorded a vote of thanks.