NO REDUCTION OF TAXES

Press, Volume LXXIII, Issue 22250, 15 November 1937, Page 8

NO REDUCTION OF TAXES

Chambers of Commerce

Complain

HIGHER STATE COSTS

ANALYSED

"The statements which have been made in the House of Representatives that taxation could not have been reduced this year without reducing the increased benefits which have been given in pensions and other social services do not bear investigation." (claims a statement by the Associated Chambers of Commerce of New Zealand).

"It was after the financial year 193536 that the Government started its heavy spending policy," the statement reads. "In comparing the estimated expenditure for the current financial year with actual expenditure for 193536, one can omit for the purpose of comparison not only the increased cost of social service benefits, but also the £720,000 increase in defence services, justice, law, and order, and £1.003 r 2C0 increase in respect cf debt and other permanent charges, and there still remain the following expenditure increases over 1935-36 in the different Government departments:—

Increase in cost. Department. £ Legislative .. .. 30.762 Prime Minister's .. .- 1.984 Customs 2D.30a Income Tax * .. • • 20-^2 Stamp Duties .. .. 7.220 Audit 13.408 Public Service Commissioners 3.066 Internal Affairs .. -. 93-51'J External Affairs .. .. 109 - 6 * % Printing and Stationery .- 610^; Marine .. .. -- Urii Labour ,«599 Native ««7 Valuation -• -• „~, Census and Statistics .. ?•;•£ Public Works maintenance 1,004.5Q0 Lands and Survey -- l-*^™ Agriculture -. -- i 6^-^ Industries and Commerce 219,832 Scientific Research .. 4?-J£~ Mines . •• " " 91 ESS Transport . - - - - - -C_*££, Railways .. - - - • I »ir'*~r Supplementary Estimates .. 300 '2*> Unemployment Administration 127,;>59 Pensions Administration .. Health Administration .. 332,684 Mental Hospital* Adminis- „.,„„ tration ■ • - - 92^8<* Education Administration .. 156,777 National Provident Administration .. -- i^aa 5,076,627 Less cost of restoring wage and salary cuts (includ- „__„ ing railways) 626,66 a Total increase .. £4,449.862

"The figures given above for the social service departments represent the increased cost of administratoa after deduction of the cost of pensions themselves, and after deduction also of all the other new and extended grants and services named in both the 1936 and 1937 Budget*. "The increased cost of "public worts maintenance' is on account of cot only legitimate maintenance charges but also new capital works. "In the Railways Department, costs are a major factor in determining the amount which the railways can contribute to the Consolidated Fund toward the interest on railways capital. The less the railways can contribute in this way, the more the taxpayer* have to find. In 1935-36 the Consolidated Fund received £1,051,477 from the railways towards interest oni railways capital liability, but for 1937-38 the Government estimates it will receive only £700,000 from this source. "The purpose of this statement ana table is not to set out an opinion on which items of expenditure for the current year should be entered into ana which should not, but to show that heavily increased expenditure is being entered into in numerous directions quite apart from liberalised and additional pensions, and other social be 'lt fit could well have been expected of the Government that it would nave examined this £4,000,000 of extra expenditure more closely, with a to taxation reductions, before passing the charges on to the already overburdened taxpayers."