BIG SPENDING ALLEGED

Press, Volume CVI, Issue 31158, 7 September 1966, Page 1

BIG SPENDING ALLEGED

Marginal Seats Held By Govt. (Neu? Zealand Prest Association! WELLINGTON, Sept. 6. The Government was “pumping" money into marginal electorates held by Government M.P.s, Mr B. P. MacDonell (Opp., Dunedin Central) said in Parliament today.

“Parliamentary democracy will be undermined if the Government intends to go on putting money into Government seats,” he said. “This is political patronage.”

Mr King said the Bill was only trifling with the question of taxation. Mr D. J. Riddiford (Govt.. Wellington) said the rates of taxation were lower since the National Government came to power than they were under Labour.

By applying the test of the proportion of gros: national product taken in taxation, one would see that the Government’s record was a good one. To say New Zealanders were the highest-taxed people in the world was not correct, Mr Riddiford said. There was a number of countries where a greater proportion of the gross national product was taken in taxation.

He was speaking during the second-reading debate on the Land and Income Tax Amendment Bill. Mr MacDonell said the Under-Secretary to the Minister of Finance (Mr Muldoon), said during debate on Friday that the Government had put money into the National-held Gisborne electorate to develop the area. “Money will be pumped into National Party seats for schools and post offices, but no money will be paid into Labour Party seats,” said Mr MacDonell.

Mr A. J. Faulkner (Opp., Mt. Roskill), said the Bill was designed to extract £36 million more in taxation than last year. “There has been no explanation from Government members as to why we need this extra money,” he said.

If the National Party was re-elected in the election, its practice of putting money into National seats would continue, he said. Export Incentives

Mr D. J. Carter (Govt., Raglan) said that few would deny the Bill was designed to give encouragement and incentives to exporters. Mr Carter refuted Opposition charges that the Bill was “stop-go policy” and said that the Bill would allow farmers to plan their work. Mr N. J. King (Opp., Waitemata) said farmers were concerned about the lack of availability of farm finance. This was where the Government had failed drastically in giving concessions to the farmer to increase production.