"NO UNDUE BURDEN."

Auckland Star, Volume LXI, Issue 195, 19 August 1930, Page 9

"NO UNDUE BURDEN."

INCREASED TAXATION.

PRIME MINISTER'S DEFENCE.

INQUIRY INTO HIGHWAYS FINANCE

(By Telegraph.—Press Association.)

WELLINGTON, this day.

Replying in the House of Representatives to the debate on the second reading of the Finance Bill, the Prime Minister, the Hon. G. W. Forbes, speaking after 2 a.m., said there had been a good deal of criticism with regard to the Highways Board. He submitted that if the Government had discontinued its payments to the Highways Board and made no provision for road construction there would have been ground for complaint, but it had made such provision, and money for the purpose was being obtained from the additional tax of 2d on petrol.

He contended that when an arrangement had been made with the motorists regarding the Highways Board grants it had never "been expected that it was to continue irrespective of the state of the finances of the country in the future. As a matter of fact, lie considered the time had come when the question of the Highways Board should be reviewed. It was his intention, either before on during next session, to submit the whole question to the Public Accounts Committee of the House to ascertain whether the present system of highways taxation could be placed on a more satisfactory basis. The finances of the country appeared to be getting into an unsound state when complaints were being made that there were certain funds on which no one must lay hands.

Kef erring to the bill Mr. Forbes said it had been framed in such a way that the necessity to cope with the strain on the Dominion's finances had been met without imposing an undue burden on any one section of the communitv.

Mr. D. G. Sullivan (Avon) had complained of the decision that the South Island Highways Board should provide the cost of restoring certain roads in the earthquake area. The Prime Minister said the funds of the board were in a far more buoyant position than the Consolidated Fund. All the board was asked to do was to repair roads under its own control. Film Hire Tax. Dealing with the film hire tax, the Prime Minister said that despite the fact that there had been an increase of over 100 per cent in the returns from films last year, there had been a drop in the duty paid from £37,000 to £26,000. It had become apparent that less footage was required in the case of sound films. Further, in view of the anticipated increase in duty, there had been such heavy clearances of film from bond that the increased taxation of a footage basis would have had to be so heavy, to provide the extra revenue required from those cleared during the remainder of the year, that an undue burden would have been imposed on theatre proprietors. To meet the situation thus created, a new method of taxation had been devised. The bill was read a second time, and the House rose at 2.35 a.m. till 2.30 this afternoon. Estimated Revenue. When moving the second reading last evening, Mr. Forbes stated that the bill was estimated tp produce something like £447,000, made up as. follows: Stamp duties. £41,000; bank note duties, £.50,000: totalisator duties, £100,000; death duties and gift duties, £45,000; amusement tax, £70,000; film hire tax, £50,000; sharebrokers' fee tax, £1000; land assurance fund, £60,000; interest on reparations, £30,000.