HIGH TAXATION COMMENDED

Press, Volume XCIII, Issue 27988, 7 June 1956, Page 14

HIGH TAXATION COMMENDED

“BEST DEFLATIONARY MEASURE” POSTMASTER-GENERAL’S VIEW (New Zealand Press Association) WELLINGTON, June 6. High taxation was the best deflationary measure, said the PostmasterGeneral (Mr, T, P. Shapd) to a public meeting tonight. “The country cries out for the Government to reduce taxation. Then there are cries about inflation and rising costs, and others want more telephones . . he said. “It is simple to make all these requests, but not so simple when you are the government having to do all these things. “While Cabinet Ministers are asking for more mon'ey the Prime Minister (Mr Holland) is saying we must have lower taxation, otherwise we will be thrown out. In taxation the Government has to balance out what is a reasonable demand on the labour force and other similar things. The Minister of Finance (Mr Watts) has to balance the money he can get from the public with what he can pay out —and as a consequence has to dampen anyone who asks for money. “The difference between what people want to save and what they want to spend on public works is between £30,000,000 and £40,000,000,” said Mr Shand. Public servants were scattered all over Wellington, a most inefficient way of doing business, and the Government was holding back its building to go on with the expenditure urged by public clamour, he said. “If a government does everything the public are clamouring for it to do, it may last a while, but soon people wake up to how inefficient it is,” he said.

Speaking of savings, Mr Shand said that private savings were not what they should be. The Government had held out hope to too many people that they would get a house without paying for it. In his opinion no-one could expect a young couple to pay for a house' when they married, but they could and should contribute part of the money required.