WAR TAXATION

Dominion, Volume 8, Issue 2381, 10 February 1915, Page 6

WAR TAXATION

PRIME MINISTER INTERVIEWED. ißy Meerapa.—l*ross Assod&ttooJ ■ Auckland, February 9. A question as to whether the Government contemplates an increase of taxation on account of the Dominion's war expenditure was put to the Prime Minister by a "Herald" representative this evening. "Increased revenue will -undoubtedly be necessary," said Mr. Massey. "It is quite impossible yet .to say what the war will cost New Zealand, but we mu6t have' sufficient to pay the interest and to provide sinking funds for the war loan 6. Wo do not want to take more revenue from the public than is absolutely necessary for the carrying on of the business of the country and doing our duty to the Empire. Every increase of taxation means lessening the spending power of the people and interfering with what may be called the wages fund, and I need hardly say tliat. we do not waut to interfere with either one or tho other any more than we can possibly help. Tho revenue has kept up wonderfully well so far, and the indications go to show that there is a probability of it remaining good right through the present year. The Post Office Savings Bank returns are particularly satisfactory, but when increased expenditure takes place there must be increased revenuo. We shall not ask for any more than is absolutely necessary, but it is impossible just at present to make an accurate estimate of the amount that will be required." ; In reply to a further question as to the form that the increased taxation may be expected to take, Mr. Massey said that ho could givo no information on that point at present. "I can only say," he said, "that when the time comes we shall ask the people to contribute' in proportion to their ability." Mr. Massey added: "New Zealand has felt the pinch of the war probably less than any other country in Hia Majesty's Dominions, and there is no occasion for any anxiety. The prices of our staple products are so good that I believe the present prosperity will be continued right through. There is a feeling of confidence all over the Dominion. Employment is plentiful just at present, and the Government will endeavour to keep the public works going -so as to provide employment for tlioso who otherwise may be unemployed. Tho public works are now being kept fully up to the usual standard.