More for workers, development, business

Press, 26 November 1980, Page 1

More for workers, development, business

The tax cuts announced last evening would ensure that most wage and salary earners were taxed a marginal rate of 35 per cent, Mr Muldoon said. The changes in the tax code, effective from February 1, 1981, will: Raise the limit for the 14.5 per cent tax rate from $4900 to $5500; — Raise the limit for the 35 per cent tax rate from $11,500 to $12,600; and — Raise the limit for the 48 per cent tax rate from $16,000 to $17,600. Adjustments would also be made to National Superannuation rates, Mr Muldoon said. These changes would cost about $3 million in 1980-81, and $2.5 million in 1981-82. The Government will spend up to an additional $7O million on power-sta-tion construction and the development of coal resources will be accelerated through the Energy Plan issued this vear. The money will be directed towards the Huntly, Upper Waitaki, Clyde, and

Tongariro power projects, and the Ohaki geothermal station. The completion of coal-handling facilities for Buller coal exports will be hastened, and more money will be channelled into coal exploration. The National Roads Board will get an extra $6 million in the current financial year to offset abnormal increases in bitumen prices. Regional works will also be sped up, in particular:

water resource investigation in Taranaki; coal-re-source proving in the Waikato; Lands and Survey farm development in all land districts; irrigation and water supply; and agriculture and fisheries. Several labour-intensive projects in education, justice. and social welfare areas will also be accelerated, including' starts, on Social Welfare family homes. A pool of funds will be established to finance other accelerated public works and . employmentcreation schemes of a small, self-contained and

effective type which can be launched quickly. Small businesses will be helped through the Development Finance Corporation by a “venture capital facility,” which will provide equity finance for viable investment projects. A fund of $lO million will be provided. Concessional finance will also be made available to small businesses, providing a suspensory loan of $3OOO a job, on the criterion of extra jobs created and filled through the Labour Department This scheme will also be administered by the D.F.C. To create jobs in the short term, the Government will increase State forestry planting by 5500 hectares, and has approved changes in the qualifying limits for forestry encouragement grants and loans to stimulate local authority and private planting. More labour-intensive work will be done by the Lands and Survey Department. Measures to help young people get jobs include expanding ’ pre-employment

courses in schools by 50 per cent to 4000 pupils, establishing work exploration programmes for up to 10,000 pupils, and extending the Young Persons’ Training Programme with an increase in the training allowance of $5 a week after tax. Employers have been given extra incentives to take part in the Public Sector Job Creation schemes introduced in the 1980 Budget. Two new programmes have been added. The Work Rehabilitation Programme will give continuing work to those with limited prospects of normal employment who would benefit from extended rehabilitation. A Community employment Initiatives Fund will be set up. The Minister of Labour (Mr Bolger) will be able to approve grants of up to $lO,OOO for com-munity-based activities outside standard pro-

grammes.

(Reaction, Page 6.)