EXAMPLE FOR N.Z.

Auckland Star, Volume LXXV, Issue 217, 13 September 1944, Page 4

EXAMPLE FOR N.Z.

TAX CONCESSIONS

ACTION IN AUSTRALIA (By Telegraph.—Parliamentary Reporter) WELLINGTON, this clay.

Concessions to taxpayers made in the latest Federal Government Budget were commended to the notice of the Minister of Finance, Mr. Nash, by the Leader of the Opposition, Mr. Holland, when the Land and Income Tax (Annual) Bill was in the Committee stage in the House of Representatives last night.

Mr. Holland said that the Opposition did not accept the Government's contention that requirements could not be met with a smaller total expenditure. "We believe," said Mr. Holland, "that if there is proper supervision of expenditure, particularly war expenditure, the Government could give at least as good a result with a considerably smaller amount of money. Why can we not follow what. has been done in other parts of the, world where they have been able to establish post-war credits without increasing taxation? Here the Government says it cannot be done. When we suggest we might be able to reduce the amount of expenditure on the war the Government says that cannot be done, yet it has been done in Australia." Australia's Reduction Australia, he continued, was reducing its war expenditure by £40,000,000. Why was it Australia could do that? According to a cabled report a Treasury spokesman stated that the reasons for the reduced war expenditure were a decreased demand for large capital expenditure and a diversion of some of the armed forces to meet the needs of essential industry in accordance with the agreement between the Allied Governments. Surely, said Mr. Holland, the same conditions could be applied to New Zealand. The Opposition knew that it would be possible to reduce the cost of building for returned servicemen by at least £110 to £130 for a fiveroomed house by removing the sales tax from building materials. The Minister of Finance said it could not be done, and yet that was the very thing that was being done in Australia. In Australia it had been possible to increase subsidies by reducing expenditure and to grant taxation concessions to industry, which the Minister of Finance in New Zealand could not see his way to make. War Winning First "I do want to suggest," said' Mr. Holland, "that our preparations for the rehabilitation period are as essential a part of our war effort as the winning of the war itself. These men who have fought for us are entitled to rehabilitation and wellpaid employment under decent conditions. What we are advocating from these benches is that industrialists and employers should be permitted to put aside some money to enable them to expand their peacetime operations, so that servicemen, when they return, will be able to get the employment we have promised them. In Australia they have done that."