THE BUDGET DEBATE

Dominion, Volume 8, Issue 2557, 3 September 1915, Page 7

THE BUDGET DEBATE

BEER AND SPIRIT TAXES ' INCREASES SUGGESTED ' Mr. J H. ESCOTT (Paliiatua) continued the debate ou the Budget pro- 1 posals. He thought the . country would willingly' find tie £2,000,000 asked for, but there was an objection to some 01 the taxation. The income tax on farmers" was going to cause a great deal of irritation, but he was not going to oppose it. He did, however, object to the tax on motor spirits and kerosene. He realised that they had not reached tho taxable limit of this country, but some resources should be left over,for nest year,, when mother tax' might be necessary. He thought that tho old system of beer taxation was the best, ajid they should increase the tax from 3d. to (id. per gallon. Instead of getting an .additional £55,000 as under the Budget proposals, they would then get £127,000 additional. The Board of Trade could be very useful in seeing . that tho tax was not passed on. to tho consumer. Ho would also increase tho tax on spirits from 16s. to 20s. per gallon; a net increase over the Budget proposals of £144,000. A tax of 2d. per lb. on tea might also bo put on, and it would bring in £00,000. If times wero not so serious he would favour the abolition of the, mortgage tax altogether. As it was he thought •a graduated scalo might be charged. Mr. J. T. JI. HORNSBY (Wairarapa) hoped that the inauguration of a National Government would _ givo them proportional representation in the future, and finally an elective Executive. Dealing witlh itho present crisis ho Said that the country as a whole had come up to their responsibilities magnificently, but what of tho men who talked patriotism, flapped the flag, and cheered tho soldiers when they went away, and then turned round, and, iii ' a most miserable'spirit robbed the people of this country? They spelt their patriotism "profit." A war tax should be imposed on men who were making large sums of money from mortgages. They wore agreed that this wasa time for "economy, but there was no indication of taxation of luxuries. Thcro was no sign of taxation on champagne or other ,expensivb wines, and yet they proposed to tax "ginger-pop!''' Sacri- ■ ficos wero made by those who were sending sons to the front, but how wany of those who ought to make sacrifices wero doing so? 'Hit graduated land tax had not done what it was set up to do, for land aggregation was going on. He was sorry suqli small reference in tho" Budget _ to Native lands. Natives veto being im-J

poverislied by tho provision allowing them to become Europeanised; wero being impoverished by tho speculator and tho ' 'land-grabber." There wero Natives in his district who would be landless in a few years if something was not done to 'protect them. As to tlio postal taxes tho charge, to bo fair, should bo Id. per ounce, with - tho supertax added. Ho opposed tlio kerosonso and benzine tax. Ho asked what had become of tha C-ost of Living Commission's report. They wanted action at this time and 0110 of tlio arrangements of tho National Cabinet coming into office was that tho cost of living problem should be dealt with. Tho country was waiting for something to be done. Mr. 0. H. POOLE (Auckland West) congratulated tho Finance Minister and tho . National Cabinet on the Budget, but he declared that it, was "not 'lieroio enough," He criticised tlio railway management and administration. He advocated tho imposition of postago charges at the rate of Id. per ounce, instead of Id. for 4 ouncos. This would be no hardship, and would not be felt' at all; except by business houses. Ho was sure the duties on petrol and kerosene Would not in the end be imposed. Shut Out Enemy Goods. Mr. A. HARRIS; (Waitemataj suggested that as the war might last .for 'some considerable time yet, the Dominion would havo to put its house in order, so as to meet the future war expenses. Sinking funds on the war loans would amount to a large sum, and freak taxation, would probably be necessary in the near future. If the Daminion'-j resources wero husbanded .those charges could be met. He complimented the Government on the determination , to shut out enemy goods, and hoped that after the war such.' a 'prohibitive tariff would be put on the goods of our present enemies that it .would be impossible for them to enter New Zealand. He felt tho Government had not handled the beer duty problem in tihe proper maimer, it made one wonder if they would ever havo a Government courageous, enough to grapple with this octopus. The increase on spirits was also wholly inadequate.' Mr. J. B. HINE (Stratford) moved the adjournment of the debate. The House rose at 10.49 p.m. till 2.30 p.m., to-day. : .