BUDGET DEMANDS

Auckland Star, Volume LXXI, Issue 154, 1 July 1940, Page 9

BUDGET DEMANDS

"MODEST SACRIFICE. ,, EQUALITY OF BURDEN. EXPLANATION BY MR. NASH. Though the Budget demands might be considered drastic they constituted a very modest sacrifice compared with what citizens as individuals and as a nation stood to lose if victory were not achieved, said the Minister of Finance, the Hon. W. Nash, in discussing the financial provisions for the war effort. He explained how every item of the Budget bore some relation to the war and how the Government's aim was to spread the burden equitably over the community.

Mr. Nash said it would cost £20,000,000 to maintain New Zealand forces in the field this year. Goods and equipment must either come out of British production or our own, and it was clearly the duty of the Dominion to work to its utmost capacity to provide the maximum supply of foodstuffs and material for the men. The extent would be governed not only by ability tt> increase production, and also by availability of shipping. Rich Cannot Pay All. "There is no possible way by which the community as a whole can avoid the epecial war taxes," said Mr. Nash, in pointing out the wisdom of taxation in raising the money as against getting it by borrowing. "It is essential that the sacrifices that must be made should be borne now.. It has been suggested that the rich /should be made to pay for the* war. Latest figures show fewer than 3000 persons in New Zealand have an income above £2000 a year. If all their personal income were taken it would not bring in more than £6,500,000 a year, or a little over a third of what we require."

Dealing with the extra £2,000,000 voted for social security the Minister denied that it was extravagance. It merely represented a guarantee that necessities would be available to all. He also defended the £3,000.000 grant for public works, which would include land development, and the £4,000,000 vote for housing. "Some must fight and some must work," the Minister concluded. "Some must fight and pay and some must work and pay. One thing ie certain, those who can pay must."