The Dominion. FRIDAY, NOVEMBER 12, 1909. WASTE AND TAXATION.

Dominion, Volume 3, Issue 662, 12 November 1909, Page 6

The Dominion. FRIDAY, NOVEMBER 12, 1909. WASTE AND TAXATION.

New Zealand must present a puzzling spectacle to foreign observers. Hero is a young country, in tho full tido ot early youth, richly productive, blessed with a perfect climate, inexhaustible in rosources, and growing very rapidly in population—and jet unablo to find governors who can manage its affairs without resorting to taxation proposals that suggest an old country hard-pressed with the accumulated burdens of years. Wo have ar different times directed attention to tho curious fact that whatever ,tho growth of revenue from taxation; may be—and it has bocn enormous—the Gov-, eminent, for years past, have managed to force up tho cost of government bo at to absorb it. Instead of the country deriving the full bdncfifc of tho taxes collected from it, a largo proportion of,the raonoy has beon diverted into a channel which so far as the public aro concerned has meant absolute \fnste. If statistical confirmation of this obvious truth, is wanted, jt will be found in tho following table covering a decennial period; ... Cost'of- ■'.." Year. Taxation. , Government. 1898-09 2,707,031 2,638,405 " IS9D-00 2,631,126 2,854,810 ; 1900-01 a,042,!>0(l 3,144,430 1901-02 .< 3,113,070 3,498,245 : 1002-03 -... 3.277.0G4 3,641,599 ••■• 1903-W 3,649,601 8,62f1,8M 1904-05 «... 8,754,3?!) 1,904,930 ■. 1005-06 3,841,510 4,252,233 ; 1906-07 4,2W,655 4,78<),808 1907-OS 4,(M5,75-1 5,0«3,344 \

Tne cost, of. government:-for'tho year IMB-9 roso ! to £5,675,483, an , mercase of nb'alriyi.half^d./toinipnV/B^rlinjfl-v^'V-Thiß; table can bo furthor resolved into the following exposition o^thb l anni(ai increases ifl :&s', amount of' ; taxatioiCcollected and in the cost of, administration ': . : ! ;■:■:■• inoTeieeforthe.-;-': •;' In. . ' .la cost of ; , , i'ear. Taxation! • Qevdraaeat. ' '■ ■■ ■ ■ ' j ~ / JJ '. ■ . rt ':'' •miixi '.'..............; . 184,0a7:".',.'•..158,405 , 1900-01 151.7G4 • 249,670 1901-02 ................. 70,1159 353,7(5,5 . ■ 1902-03 , , 101,885... . ,130354 ■ 1903-04. ............... 871,637 - -185,765 . 1904-05 ......: .'..••. 104,778 "\ 143,566. ' ■•■ ■:1905-08-.r....■..„..„.....■. 87,217 " 287,303 '' 1906-07 . „...;... 422,959 -. -481,573 . ; 1907-08.; -.;..;.........,. •; 381,199 ■J. ■• 338,538 , In 'the; ten' years the' cost bf adtnihistta:' tion (exclusive of the,permanent charges, i.a.i civil list, interest •on debt, pensioris, .oti;,: and exclusive, of /'courso, of public worke' expenditure) noarly'■ doubled.'. It had more than doubled by 180S-9, This is: why the Government has been- unable to .temper- what is on the face; of it an ■amazingly high rate of ■ taxation.; ;Tho taxation:,'., pot,:.'; head '. for; tho year 1907-8, £6 OS.. 4d., is not much short of double ;the per capita rate iri Britain, which now stands at what is regardod ta ti high; war-rate. The rises in the costof administration since Sir Joseph .y'An» camoi into power speak for themselves, He - has mage tho. adminisfration/cost , us a million and a quarter sterling per" year more than it; cost when Me. Seddon died. 1* prudent financier a,nd' careful admihistvator could with the' greatest, of ease have diverted at: least half a million a year of sum to developing the country—half a million a year' at least wasted s in Departmental expenditure"; administrative extravagance whicH might have been fspent on . such V. reproductive works as. roading; the; back-blocks ' and opening up lands for settlement. , . We direct attention to this matter on , the present occasion because ; the. Pbimk MiNisTEE, in demanding further taxation from the country, has done so in conjunction with certain professions, of eebnbmy and prudence.: ■, It.would, be, gratifying indeed to believe that. these profcssiqns are to bo But the Prime Mininstincts, , , wo are sorry to think, are stronger than.his. good resolutions. His attitude to-day is worth comparing with hii attitude in 1893. In that year, as 'Colonial Treasurer, he said in' 'his

Financial Statement:—, ' •;'. . '. There is a great deal to be eaid against the raising of more revenue by taxation than-is ordinarily required to carry on the services of the country, and I am free to confess that IT IS SOT DESISAfItB fO DBAW MOBB ?BOM IBS Kkjkbts of the TASPATEKS then they aro at present contributing. On tho contrary, the policy of the' Government, as , I hare already indicated, shows that we believe that, bembj SHOULD, BE AFFORDED TO TOT TAXPAtBRS. ' it that "time tho taxation per., head that was thus declared to''be quite high/ enough was £3 11s. 2d. r It has increased' to over.'£s since thon, find the once feseing opponent of high taxation is now striving to. extract still .more from '■ the pockets of the taxpayers. Everyonemust see that tho Government's demand for still larger subtractions from the current capital of the nation is due mainly to the extravagance and improvidence of ''Liboial" finance. If tho money taken by. the tftx-gathofei* wore epont as prudently, and to'tho same advantago, as it ie spent ( by private persons, thorc'would be little to object to in a high rate of taxation/ pet head. But why do statesmen the'world over strive to keep taxation" as low ;ae pos9iblo 1 Why: does even Mill. LloydOeorok say that taxation is bad in itself ? Because . they know, and admit, that State expenditure carries a,' burden of waste; an oxtravagaut> andoptimifltic Pfilill MISXSim tkit imttrevcn

in; a email- country liko'Ncw Zealand can grow to tho huge., dimensions shown'by the figures quoted above. In view of tho lessons of the past, tho Budget profeseione of economy can be given, little credence. Thoy , arc further discounted by the presence, of tho now taxation proposals, with the opportunity they will afford for further; ...extravagance and waste. ;..:, ,;.,..■"■;::'..