SALES TAX AND EXCHANGE

Press, Volume LXXIV, Issue 22460, 22 July 1938, Page 14

SALES TAX AND EXCHANGE

♦ REASON FOR LABOUR'S ACTIONS MR SAVAGE'S EXPLANATION [From Our Parliamentary Reporter.] WELLINGTON, July 21. "I don't know whether to pity the Leader of the Opposition or to blame him. Perhaps it would be easier to pity him," said the Prime Minister (the Rt. Hon. M. J. Savage), when speaking in the financial debate after tne Hon. A. Hamilton in the House of Representatives to-night. "Mr Hamilton said that the Government look over the ship of State on an even keel, and in good trim; but that it had been overloaded with a tophamper of taxation," said Mr Savage. "If that is right, the people are not likely to forget that the passengers were all bankrupt." Mr W. J. Broadfoot (National. Waitomo): You can't be a passenger unless you have paid your fare. "The Leader of the Opposition also talked about the flight of capital," Mr Savage said, "and Mr Endean said he knew for a fact that New Zealand investors were sending their money to Australia, South Africa, and Great Britain. In fact, he had sent some himself. By their deeds shall ye know them."

Mr Savage said that Mr Hamilton had spent a good deal of time talking | about borrowing, and had said that much borrowing brought prosperity. The last Government must have had a lot of prosperity at that rate, because in 1931 the Public Debt was about £273,000,000, or £103.000,000 more than in 1919. During part of that time the last Government had reduced the salaries of civil servants; but it had achieved prosperity in 12 years at a cost of more than £8,500.000 a year. That was not bad going. "The Leader of the Opposition said we promised to reduce the sales lax," the Prime Minister continued. "Who introduced it?" Mr S. G. Smith (National, New Plymouth): Who promised to take it off? Mr Savage: If you know anything, you will know that it is easier to impose a tax than to abolish it. "The Leader of the Opposition also talked about the rate of exchange." Mr Savage said. "Who put that on?" Mr Smith: Who promised to take it off? "There was a mild revolution in the ranks of. the last Government about exchange," Mr Savage said. "In fact, the Minister for Finance resigned. They want to know why we have not reduced it. We have not done so for the same reason as we have not reduced the sales tax. We have been in power for only three years, and I am sure the electors will give us time to do the job. Mr Broadfoot: Time! You should get a life sentence.