COMMENT ON THE BUDGET

Press, Volume LXXI, Issue 21582, 19 September 1935, Page 6

COMMENT ON THE BUDGET

View of Commercial I Community PRAISE AND CRITICISM (EBSBS ASSOCUTIOH TBiSGBAM.) WELLINGTON, September 18. Commenting on the budget, Mr A. H. Allen, president of the Associated Chambers of Commerce of New Zealand, iaid the commercial community and the whole people would be gratiaed that the budgetary situation had been kept under control, that budget stability had been restored, and that the public debt was less now than three years ago. It was also a matter for satisfaction that public works could be undertaken without borrowing for' the whole proposed expenditure. Mr Allen said the decision to revert to the flat rate charge for telegrams met fully the case made out by the Chambers of Commerce, and was very welcome. On the other side of the picture the budget gave not one penny reduction in taxation under the consolidated fund. In spite of the widespread desire for the abolition of the sales tax, there was no sales tax or income tax relief. On the other hand, the estimated taxation revenue would establish a new high level, exceeding even last year, when taxation revenue reached the highest point ever recorded in New Zealand. There was the consolation that the. Government might be working toward the complete abolition of the sales tax next year. It was disturbing to note that .ae total expenditure of the consolidated fund was still creeping up, and after successive increases since 1932-33 was now £1,229,000 more than last year. Highly important expenditure should not get ahead of the capacity of the people. There was still a wide field open for economies. There were recommendations by the National Expenditure Commission which were still untouched. Mr Allen commented that there was still no move to tax State and municipal trading concerns, as in England. No notice appeared to have been taken of the advocacy for the taxation of profits arising from mutual societies, trading with their members. Social services were becoming a terrific burden, and if the proposed investigation by the Government into the contributory national superannuation health scheme was with a view to reducing 'the cost of social services on the general taxpayer, then the scheme would be awaijed with great interest. He read of the housing scheme with some trepidation, and hoped that there was no possibility of the State becoming a landlord on a big scale, and involving the taxpayers, in view of the heavy losses the State has sustained as a lender over many years.

DISAPPOINTMENT AND APPRECIATION SALARIES OF PUBLIC SERVICE 11 (PBE63 ASSOCIATION TELEGRAM.) WELLINGTON, September 18. Commenting on the, budget, Mr F. W. Millar, general secretary of the New Zealand Public Service Association, said the public service was naturally disappointed that the salary restoration proposals did not date' from April 1, and that there was,to be no full restoration.

The 7J per cent, increase still left the service salaries below the predepression level to the extent of approximately 3J per cent, for officers receiving less than £225 per annum, 8J per cent, for those receiving more than that amount, with the exception c 3 administrative and other higher paid officers who would still suffer to the extent of 11J per cent. "Nevertheless," said Mr Millar, "that disappointment is tempered by clear evidence in the budget that the Government is endeavouring to live up to the undertaking that the service salaries would be restored as conditions improved, and recognises the priority of the service claims. >

"The announcement that the postponed five-yearly general regrading will probably take place in 1936 calls for expression of appreciation too, as does the inclusion in the estimates of provision for an additional subsidy (as was granted last year) towards the service superannuation funds."

PRAISE FROM "THE TIMES" (traiTSD PBBBS A3BOCIATIOJf—COPTSIGHT.) (Received September 18, 7.5 p.m.) LONDON, September 17. "The Times" in a. leading article, warmly compliments Mr Coates on his budget. It says his customary financial caution safeguards his appeal to voters. The Dominion is sharing the cumulative recovery of other countries of the Empire. RESTORATION SAID TO BE INADEQUATE , (P3ESS ASSOCIATION TKLEOBS.iI.) , AUCKLAND, September 18. The Dominion President of the Post and Telegraph Employees' Association, Mr H. W. Parnell, expressed keen disappointment at the budget from the civil service viewpoint. The seven and' a half per cent, restoration, he said, was inadequate, and should have been made retrospective to April 1. In view of the favourable financial position the department considm-ed that full restoration was justified. Many local bodies and private firms had already restored cute fully. Similar restorations had been made in Britain and Canada.