NO TAX CHANGES LIKELY IN COMING N.Z. BUDGET

Auckland Star, Volume LXXIV, Issue 110, 11 May 1943, Page 2

NO TAX CHANGES LIKELY IN COMING N.Z. BUDGET

It is characteristic of wartime that there is a very small legislative programme proposed for the session of Parliament which opens on May 19. The Financial Statement is to be the outstanding feature, and the Government will not keep the public long in suspense over its proposals.

Everyone is anxious to know whether taxation will be increased this year—nobody expects that it will be reduced—and there is the authority of the Prime Minister, Mr. Fraser, for stating that there will be no lessening of the burden. There is good reason for stating that the Budget will be ready for presentation when the House meets, and it is highly probable that an opportunity will be taken in the first week to place the Government's proposals before the House and the country.

Since his return from Washington, Mr. Nash, Minister of Finance, has concentrated on the Financial Statement, with the result that Parliament will have its Budget at this early date. It is understood that it could be brought down, if necessary, on the first day of the session, but there is difficulty in this connection because condolence motions always take precedence, and since Parliament last met the death has occurred of Mr. Paikea, .representative of the Maori race on the Executive Council. The War Situation Precedence is also given to discussions of the war situation and, as events have moved rapidly of late, it is possible that opportunity will be taken in the first week of hearing a statement on this subject from the Prime Minister. If this course is adopted it will further delay the presentation of the Budget, as members always wish to have a general discussion on the vitally important matters raised by the Prime Minister.

It is obvious that taxation cannot be reduced. The financial requirements of the war have increased and this points to the possibility of some further demands being made on the taxpayer. New Zealand so far has successfully followed the policy of paying at least one-half of its war expenses out of current revenue, and there is no suggestion of the abandonment of this policy. Last year the budgetary provision of £133,000,000 for war purposes was a record, and it would not be surprising if, at this very active stage of the war, another record is made. The buoyant condition of revenue leads taxpayers to hope that the increased receipts required for the current year may be realised without recourse to actual increases in direct taxation, but, if this course is taken, there will have to be some revision of the present indirect taxation, which gives the community the opportunity of adopting the principle of "pay if you like.; . Borrowing Within New Zealand Indications have been given recently of plans for a considerable increase in borrowing within the country for war purposes. A specific effort is to be made to increase the range of contributors to war loans. Mr. Nash has already referred to the "magnitude" of the next war loan, and has stated that it would be for a larger amount than had hitherto been sought from the public. The

largest war loan so far has been for £15,000,000, and it will probably be found that twice as much will be asked for in the current year.

As this is election year, the Budget is likely to be discussed.by members with more than usual zest. Each member has a right to speak for an hour, and probably full advantage will be taken of the oppertunity.

Apart from the contents of the Budget, the greatest interest is to be taken in the probable date of the general election. In some circles it is suggested that the election may take place in September, but others are prepared to concede the possibility of the Government going to the country at an even earlier date. One contingency that has not been overlooked is the possibility of the war situation becoming so tense in the next few months that all parties would agree to a further postponement.

Interest is also being shown in the question of when Mr. Nash will return to Washington. An early caucus of the Government party is to be held to consider the programme for the session, and to make a recommendation for the filling of the vacancy on the Executive Council, caused by Mr. Paikea's death. It is taken for granted that the recommendation of caucus will be that Mr. E. T. Tirikatene, member for Southern Maori, Avill receive this appointment. The only legislation of wtiich official mention has been made, relates to pensions.