Estate Relief “Purely For Rich”

Press, Volume CX, Issue 32382, 22 August 1970, Page 14

Estate Relief “Purely For Rich”

(N.Z. Press Association) WELLINGTON, August 21. Estate and gift duties relief was purely for the benefit of the rich, said Mr T. M. McGuigan (Lab., Lyttelton) in Parliament today. Speaking in the resumed second-reading debate of the Estate and Gift Duties Amendment Bill, he said that its object was “to provide tax relief for those who inherit the largest estates and the greatest wealth.” While the rich grew richer from this $3 million relief, the Minister of Finance (Mr Muldoon) would be collecting S7C million extra in income and Social Security tax. It was now that the small businessmen needed encouragement, Mr McGuigan said. “This bill is desirable for the wealthy landowners of this country,” he said. “It is desirable as far as the moneylenders of this country are concerned. The gulf between

the wealthy and the not-so-rich is widening all the time.” Mr McGuigan said that Mr D. A. Hlghet (Nat., Remuera) had described Mr Muldoon as a “humane person.” But Mr Muldoon had “a heart as cold as a stone mason's chisel,” Mr McGuigan said. Mr E. S. F. Holland (Nat., Riccarton) said Mr McGuigan’s speech was the kind of “soap-box oratory” that one used to expect from the Labour Opposition. There was too much criticism in Parliament of persons who were successful. “The Labour Party refers to them as our (National Party) wealthy friends,” Mr Holland said. “These are the people who built New Zealand up. I make no apology that these people are entitled to their share of tax relief.” The bill intended to try to retain estates in a worthwhile form. Mr R. O. Douglas (Lab., Manukau) said that if estate duty relief had not been in-

traduced the payroll tax could have been less severe. The Opposition finance spokesman, Mr R. J. Tizard (Pakuranga) criticised the Government for not spreading tax relief through the community, but rather limiting it to more affluent pro-perty-owners. “This is a continuation of policy which takes the weight of taxation off property and puts it on the shoulders of the wage and salary earners,” he said. Mr Muldoon, in reply, said the problems caused by estate duties were often a source of disruption, to established business concerns, and thus to the economy. “Estate duty at present, in many cases, is so high as to be punitive,” he said. He knew of some cases where farmers had had. difficulty in passing on their farming businesses intact because of these duties. The bill was given a sec-' ond reading.