"SACRIFICES NOT EQUAL."

Auckland Star, Volume LXII, Issue 39, 16 February 1931, Page 5

"SACRIFICES NOT EQUAL."

" CLASS TAX » DENOUNCED.

MR. SAVAGE'S ALTERNATIVE

"The most depressing statement that has yet been made by a New Zealand Prime Minister," is the description applied to Mr. Forbes' poliey announcement by Mr. M. J. Savage, M.P. for Auckland West, and deputy-Leader of the Labour party. "Everyone, excepting the interestdrawer," say** Mr. Savage, "is to suffer. Ho is to get an increase. His nominal allowance, as well as the value of his income, is to go up. Wage and salary earners, who constitute at least So per cent of the home market, are to ba content with less. The Prime Minister says that all must share the burden. If all were subjected to the same reduetion, surely the position would not be altered. If the people's incomes and liabilities were, at the same time, reduced by 10 per cent, where would the difference come in? The Prime Minister knows that in the re-shuffle that is to take place there will not be equal sacrifice. "The banks and mortgagees generally are 'appealed to' by Mr. Forbes to 'review all the circumstances in an equitable spirit and recognise their losses by easing the mortgage charges.' What unadulterated humbug! There is no appeal to working men. It is a plain statement: 'Your wages and salaries must come down by 10 per cent.' "If Parliament accepts the Prime Minister's policy, and no doubt it will, as the Government appears to have made an unconditional surrender to the Reform party, the purchasing power of the people will be reduced by some millions. , i That tho Dominion is in a bad way, financially, no thinking person will deny, but the Prime Minister's proposals will make matters worse. The Dominion is suffering to-day as a result of public borrowing abroad at a time when high prices ruled and people were in a position to pay taxes much higher than they 'were asked to do at the time. The wholesale importation of manufactured goods—a large percentage of "which might easily have been manufactured in the Dominion—during that time of prosperity has placed the country in the difficult position that it occupies at present. For many years the Dominion has been run at a loss, when all charges are considered, and all the talk indulged in about balancing accounts has been so much camouflage. "The alternative to the policy outlined by the Prime Minister is to meet current' expenses by imposing a surtax upon incomes of £500 a year and upwards.' If necessary it would he better to-begin with incomes of £300 a year than to reduce the wages and salaries of those below that standard. In addition to that, the Government should lose no time in mobilising the whole of the financial resources of the Dominion in order to lay the foundation of a forward industrial policy. Definite steps should be taken to select industries which could be economically developed in the Dominion, and, where necessary, financial assistance given for their development. This would make permanent employment for thousands of people who are at present unemployed, as well as make it possible for taxpayers to meet increasing burdens which have become inevitable as a result of past financial blunders. "What excuse can be offered for a class tax "of the nature suggested in the Prime Minister's statement? Wage and salary earners are to have a cut in their incomes, as well as being expected to pay income and other taxes which are paid by those with similar incomes among other sections of the community. Why not treat all alike by imposing the surtax upon incomes irrespective of their source? "The Prime Minister's proposal to place the railways under non-political control is only playing with words. How can tho railways be separated from the influence of Parliament so long as Parliament must, grant supplies neceesary to carry on'? In addition to that, the board of control must be made responsible to someone. Anything else would be equivalent to a dictatorship, and would not be tolerated by the people. If the Government had the slightest claim to vision it would immediately set about co-ordinating the whole of the transport services of the Dominion, public and private, under the direction of the Transport Department. A national transport board which would be representative of the interests involved might be appointed for the purpose of framing time-tables, charges, etc. "Finally. I would say that the proposals outlined by the. Prime Minister, if put into effect, must hove a depressing influence upon industry generally, and therefore upon the great majority of the community It is nor. merely a matter for public servants. It immediately affects all and salary earners, and ultimately the whole of the people."