THE BUDGET IN BRIEF

Dominion, Volume 22, Issue 263, 2 August 1929, Page 10

THE BUDGET IN BRIEF

NEW TAXATION PROPOSALS RAILWAYS AND LAND POLICY INCREASED BURDEN ON FARMERS A summary of the Government’s policy in regard to the railways, land settlement, State Advances, and other questions, together with an outline of the estimates for 1929-30, accompany the Budget presented to the House of Representatives by the Minister of Finance (Rt. Hon. Sir Joseph Ward) last night. The details are as under:— State Advances Office. Since December 10, 1928, when the Government assumed office, to July 29 last, loans were authorised as < ’low:— To 2006 settlers .. 2,420,790 2749 workers .. 2,384,995 4755 4,805,785 Loans paid over during same period amounted to £3,319,300. The position does not permit of any reduction in interest rates at present, but it is hoped that lending rates can be started on downward path before long. Railways and Road Transport. Total expenditure on highways and roads for the year was approximately £3,350,000. If the present drift is not checked the taxpayer will shortly have to find £2,000,000 a year for railway losses. Summary of Government’s policy:— (a) To complete trunk lines as backbone of system. (b) Not to build further short branch lines where transport needs can be adequately catered for by motor services on a good motor-road. (c) To investigate the position of the present branch lines with a view to doing away with those that are found to be obsolescent. (d) To write down the railway capital by the amount contributed thereto from revenue, and cancel the present subsidy from the Consolidated Fund. (e) To co-ordinate the railway and motor-road construction policies. (f) To take steps to bring about coordination between road and rail transport services. Taupo railway and Palmerston North deviation stopped as circumstances do not justify the large capital outlay involved. Land Settlement. Vigorous policy essential for return to general prosperity. Loan authority of £5,000,000 to be provided. Certain wn*te lands to be brought into cultivation. Large estates to be purchased and cut up for closer settlement. Government will pay a fair price, but will use compulsory provisions of Act if necessary. Land development branch of State Advances Office to be established to assist in development of waste lands. Agriculture. Resources of Agriculture Department available to assist men on land, particularly new settlers. Special research activities being undertaken in connection with various stock diseases, mineral content of pastures, etc. Education. System to be amended to give bias towards farming. Country schools being consolidated. Correspondence school being extended to embrace secondary education. Child welfare work being widened. Immigration. Government proposes to continue the restriction on assisted immigrants to separated families, single women, domestic servants, and juveniles. Unemployment. Standard rates of pay for relief workers increased from 9s. to 12s. per day to 14s. Additional labour employed by Public Works, Post and Telegraph, and Forestry Departments. Total cost to State of unemployment relief during year amounted to £879,618. State Superannuation Funds. Total eash shortage, not covered by subsidies in past, amount to over £2,000,000. Whole position to be investigated. Banking and Currency. Amendments to banking legislation necessary. Existing position to be maintained in the meantime. Post and Telegraph Department. Net profit for year approximately £39.000. Excess of withdrawals over savingsbank deposits for year £859.559. Sales of Post Office Investment Certificates for year approximately £550,000. Public Trust Office. Estates under administration increased by over £4,000.0 . Net profit for year £20.467. State Insurance Offices. Government Life Insurance Department issued reversionary bonuses totalling £324.871. Life Insurances in force at end of year £22.084.471. State Fire Insurance Office earned surplus of £75.600 after allowing for rebate of 124 per con., to policyholders. Accident branch shows surplus of £17.502. Taxation. Analysis of expenditure shows that charges on taxation largely of a rigid nature, and that Budget cannot be’balanced wholly by administrative economy. Government has no practicable option but to increase taxation until causes of economic difficulties can be dealt with. Burden to lie placed in such a manner as to assist the Government’s landsettlement policy, and with a view to disturbing business and trade as little as possible. Proposals Land-tax: Super-fax to be imposed on ail farining-lanrls of an unimproved valii" in excess of £10.500. Also morfsraee exemption to be reduced. Income-tax: Income from farms of an unimproved value of £12.500 or over to be sub-eel to income-tax, but amount pa’d in land-tax will he allowed as deduction fr»tn income-tax otherwise nayable. In effect this means payment of land-tax or incometax. whichever is the gre-'or. T.......... exemption for chil*

dren to be adjusted. Present agelimit of eighteen not to apply where child, on account of mental or physical permanent incapacity, unable to earn his or her own living.. Also present exemption apportionable over whole income-tax year.. Primage duty on imports increased from t per cent, to 2 per cent. ESTIMATES FOR 1929-30 Estimates carefully scrutinised and reduced to a. minimum consistent with maintenance of existing services. Departmental revenue overhauled. Consolidated FundOrdinary Revenue A/c.— Estimated revenue .. £25.172.000 Estimated expenditure 24.910.000 Available for supplementary estimates and cougencies £262,000 Estimated Customs revenue £8.400.1X10 Estimated stamp and death duties 3.614.000 Estimated land and income tax 4.893.000