BUDGET ATTACKED.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 8

BUDGET ATTACKED.

MR. FORBES' VIEWS. " BURDEN MADE HEAVIER." SMALL VOTE FOR DEFENCE. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The attitude which the Opposition will adopt towards the proposals contained in the Budget was fully discussed at a caucus of the National party this morning. In a statement at the conclusion of the caucus the Leader of the Opposition, the Rt. Hon. G. W. Forbes, made some pointed comments on the Budget, which he described as a "cold douche" on the hopes of many thousands of people. He announced that the Budget debate in the House of Representatives to-morrow night' would be opened by the Rt. Hon. J. G. Coates, who was Minister of Finance in the latter years of the Coalition Government. "I look upon the Budget as i cold douche on the hopes of many thousands of people that, with the improvement of economic conditions, there would be some relief from the serious burden of taxation that was imposed to meet the necessity of the depression," said Mr. Forbes." "Instead of -that, the burden has been made heavier, without a single remission. The statements of the Prime Minister during the election campaign, that taxation would not be increased have evidently been forgotten."

Mr. Forbes referred to the wonderful recovery of the Dominion, as was evidenced by the fact that the Government could rely upon another £3,000,000 from increased revenues. That was not sufficiently large, however, to provide for the "Government's . spending programme, so the taxpayer was to b# called upon to provide an additional amount of £1,800,000. The whole provision of social services, pensions, etc., depended upon the soundness of the economic structure, and the piling up of financial burdens undoubtedly weakened the stability of that structure. "Excessive taxation such as is proposed, in addition to the enormously increased costs, added to industry by the Government's industrial legislation, must slow down the wheels of industry," said Mr. Forbes, "and discourage the initiative and enterprise of citizens generally. No thought has been given to the effects of increased taxation on the progress and increase of production, which means so much to general prosperity, affecting all our citizens. Farmers Disappointed. "A notable point in the Budget is the fixing of the price arbitrarily of our dairy produce at a point which is below the present market price. This must cause considerable disappointment, in the minds of those dairy farmers who were looking forward to an improvement on prices, of which there are definite signs, to 'enable tliem to make up some of the leeway of the lean years of the depression.

"The failure of the Government to appreciate the urgent need of making adequate the defence of this country is another notable point in the Budget. The increase proposed in the Budget is only trifling with a very serious and urgent matter."

' Mr. Forbes said that tlie reference in the Budget to the adjustment of mortgages was involved, and it was difficult to know on what basis the Govern- ; ment intended to proceed. Those people who had money invested in houses and land would be watching the position with a great deal of anxiety, and one would have expected the Budget to be more definite on such an important point. It was not made clear how the Government was going to finance public works. When the present Government was in Opposition it had protested against the use of the Unemployment Fund for the carrying out of public works, but under the proposals of tlie Budget it was apparently intended to use the Employment Promotion Fund for that purpose. A good deal had been expected of the Government in regard to the remission of.taxation, but nothing had been done. During the election campaign and sinde it had been promised by the Government that the sales tax and the gold export tax duty would be removed, but those promises had failed to materialise. Another surprising feaI ture of the Budget was the Minister's failure to make any reference to a land settlement policy. Such references had been a feature of Budgets for years past, and one was entitled to ask whether the Government had any land policy. There was nothing in the Budget to show that it had, one. Mr, Forbes said that he would be speaking later in the debate and would probably reply to the' Prime Minister, Mr. Savage.