TAXATION CUTS

Press, Volume CII, Issue 30144, 30 May 1963, Page 15

TAXATION CUTS

Optimism By Minister

If the present progress could be maintained—and he was certain it could be—the way would be clear for the Government to continue with its policy of reducing the rates of taxation, said the Minister of Finance (Mr Lake) in a speech to the Canterbury-Westland division of the National Party yesterday. He said the Government believed that initiative must be encouraged, not stifled by controls and high taxes. In the last two Budgets the Government had given taxation concessions worth nearly £25 million, he said. “But for the sorry state of affairs we inherited in 1960, no doubt the concessions would have been greater.” After surveying the balance of payments, labour market, trading bank advances, building activity, prices, and the public accounts, Mr Lake said the economy was very liquid. Evidence of this was the short-term money market deposits £ 17.1 m increased small savings, and a _ high level of Government expenditure.

The liquidity was being reflected in a growing demand for investment which ’ ap-. peared to be orientated towards economic development. Mr Lake said that while the New Zealand economy was fairly well balanced and a moderate expansion of expenditures was taking place, it could only make real progress if a reasonable level of stability was maintained, costs and prices were prevented from rising unduly and there was not pressure on scarce resources.