THIS YEAR’S BUDGET

Press, Volume LXXXIII, Issue 25208, 12 June 1947, Page 8

THIS YEAR’S BUDGET

NO REDUCTION IN TAXATION REPORTED REMARKS OF MR NASH (From Our Industrial Correspondent.) WELLINGTON, June 11. The Minister of Finance (Mr W. Nash) told trade union delegates in conference here that no reduction in taxation could be expected in this year’s Budget. The Minister has apparently returned from overseas with an unhappy story about financial prospects. He told delegates that Britain, in her present hour oi grave financial difficulty, could not be expected to pay higher prices for New Zealand produce. He said that on the other hand the prices of practically all goods required by New Zealand from overseas were rising.

In addition to these factors, said Mr Nash, the costs of Government within the Dominion were increasing, and a large sum was required for social security commitments. The Government’s difficulties over the balancing of the Budget have already been indicated by Mr F. P. Walsh, of the Economic Stabilisation Commission, in his address to the annual conference of the Federation of Labour. Both he an 1 Mr Nash have indicated that the subsidies which are paid to keep down prices to the public must either be reduced or sustained by increased taxation. It has been for some time expected that Britain would report that she was not in a position to pay increased prices for New Zealand produce this year. Although Mr Nash makes no public statement, it now appears that if, as permitted in the produce agreement with Britain, price levels have been or are to be reviewed, then no upward adjustment can be expected.