THE RESOLUTIONS.

Press, Volume LXIX, Issue 20776, 9 February 1933, Page 9

THE RESOLUTIONS.

STATEMENT BYjMJI CPAT^. [F*p« OUR RKFO«.T»*. ] WELLINGTON, February 6. Speaking on the introduction of the Kesolutions, the Mister for Finance Customs, Mr Coates, gave a detailed explanation of the effect of the proposals. J£r Cortes (said: I It is a matter i'pr inucli regret that '■ in times liko the present it should kg necessary to impose further imposts j uppn the Tl}e @oyerninswt realises pnly too wpll the difficult under which business is being carried on to-day. We are, however, faced with a prospective budgetary shortage of £9,oQo,oQ£l, and thf financifi| stability ! of the Ppminion directly <lepen4l upon bringing this ehqi'tagp down a sale amount. The utmost is being done in" other directions by mejins 01 pgonpxnies, savings in interest, drawings nppn reserves, etyJ., bnt it is Quit® evident that the budgetary situation cannot be kept under control-r-and . that must be 4 0ne costs—with- . ogt obtaining a substantial amount froin »4d}tional taxation. The oovfrfiT ; ment feels confident that the people f will recognise the absolute necessity of j; the measures proposed, arid will do . their part in assisting the Government t to pilot the Dominion through the , present crisis. The resolutions now bPi fore the House are part of the policy i pf the Government to achieve the °'?" • ject stated. As has already been an- ? bounced, it is proposed to obtain about | £2,500,000 by additional taxation. The r various sources of taxation have 111 the past been largely availed of, but E it is now necessary again to have ret course to Customs duties on articles 1 such (is sugar, tobacco, and inotor • spirits. It is also proposed to obtain f gome additiqngl revenue from gfild Exported. With respect to these articles the position is as follows: — Sugar. The chief source of supply of refined r sugar is from the refinery at Auckland, p The duty on such sugar has been in: B creased from id to Id per lb. ■J It will bo seen from the resolutions " that it is proposed to mq.JfO the duty on imported refined sugar ljd per lb, and tl*at the duty on raw sugar is set down at Id per lb. The former is to e grant the local manufacturers the same t measure of protection Triiwji they myp e enjoyed for several years, snd the Ist* p ter is to ensure that the duty is charged b on sugar refined in New Zealand. 1 As indicating that the, extra, duty will not be a great burden pn the community, I may mention that according to the information in mv possession the retail price of sugar in London and Wellington has been about the same, and the New Zealand price, even with , the increased duty, should be much j lower than that in Australia. ■[ Tobacco. 5 Provision is made for an increase in 2 the duty on pipe tobacco by 8d per lb or Id per 2oz tin. The duties now proposed on imported tobacco are as un--4 der:— c Tobacco, cut, 6b lOd per lb, 1 Tobacco, plug, 6s 8d per 3b. | The rate# of exeia® duty on fdisUfx kinds of tobacco mad# is Z«|lsn(lj

whether fropj ijnpprtejl pf IflHiaHyr grown leaf, bnvu boca increased by £4 per lb, and are now fijed at 4b hid snd 3a 10£ d in tjie cine of cut and' jilujf tobacco respectively. The gf the protection to the tobacco grpwpr and rasnijf§.CMjrer, hag been maintained. I nifty *ut that even with theso increased rates 00 tobacco the duties now propped- w® J es#) than thoso ip force in tho United .&ii|j£" dom and Australia. In the former ccuft* try thp late on the bulk of tfye importations is at present 8b 54 ppr lb and in the latter sous try. 9s 3fj and per lb on cut and plug tobaufo# respectively. . :■;■■,' ■, Provision is wade for *» in the duty on motor spirits tp lid ?■ gallon. it is propp»pd that the &t|dlto<npl revenue to be obtained from fch£ in* creased duty on motpr spirits 3(s'" to remain in the Consolidated'F«t}d «|d be transferred to the r Mftin ipghwfiy#' ( Account and pertain ipcal bodffs. \ A" 1 provision to this fjad will be <('qttt»iae>d , in the Customs Bill, which trill Ibp ' trodnced at a later date to cosfirnt t%f 1 resolutions. 1 ' ) Gold Duty. 1 As honour fibl(j a?f ft^S r< S> l the present price pf" %o\§ ,(!<?., . carat gold) 1$ is afepfifc g(S If . an pimee, which is t» 'JSS Os ' 10d 911 ounce of 2Q r ejfistipg gold export; duty i? feswfd, Th»». i means that the f carat gold in ,New Zealand currency is £6 6s, as - witfc the price po»diti£>ns pf 4$ v. an ounpe. Ift view of the ,$f » ivhich will now be obtainable frQfßijgld j - exported froip the Dominigq, it fcffi 6sen. r . decidpd tp obtain' addi&fflMl* frpm this spurpe. Tfader tbp , gold duty Acts thp exppft dufie§ ' gold exported from JXptf * payable as follows—<Jn Nortli ) gold ojjtainpd by alluvial or Q|wfijgta[ 1 processps, 2s as ounce; on Sortfe t Jsland gold, 2s Gd en ounce; on Soiitli Island gold obtained by ttilpvial or dredging processes, tio duty; on s South Island gold, 6d an ounce. 1 r Of thepe duties Sb an oijnce (pfjablc 1 in tho North' Island only) is" pUQeattiA . to the local authorities in the district s in which the gold is produced, th® ' 6d an ounce is ultimately credited to the aid of miners' prions. 3?be resolutions now before tho House provide for an additional duty of-12s;'.$d i ounce of SO carat fineness to be paid in ' 1. respect of all gold exported from Hew 1 . Zealand wherever it is produced- It i* intended that this duty fthwld >0 twto payable on old gold, jewellery, plftte/ s etc., exported as ouch or gold #!»-; y tained by melting dowa such '> plate," etc. This object 1 is Tjy t the amendment ia tlifi 0 tions of the definition of gold i 9 tjjie c Gold Duties Act, 1908. It \s e that this additional tp be obtained from' 'the export' pjf "gold ifi 'fi? 1 remain in the donsolidatp'd 'Brovision for this will be made in the copr firming legislation. g Anticixtftted Inccsased Be^fwte. e The additional revenue expected to d be received during 'a fall year from s, these proposals is as under:— ■ '■ h £. h Sugar „ 386,006 Tobacco 4. ... 100,600 Motor spirits .* ». 580,000 a Total from Customs and b eisifte duties .. 889,600 i- Export 4aty ** gold w ,140,^8 £r&»a fjetn.l .. 1 _ .. "^yaiwy.' l ;'' j-.' '".i .'L'l.j I (CONTINUED ON fAW lto ,)