HIGHER TAXATION AND DEFENCE

Dominion, Volume 32, Issue 263, 4 August 1939, Page 10

HIGHER TAXATION AND DEFENCE

Public Works Expenditure UNEMPLOYMENT RELIEF SEEN AS REASON Statements by Government members that taxation had been increased to meet the additional expenditure for defence were challenged by Mr, Jull (Opposition, Waipawa) during the financial debate in the House of Representatives yesterday. It appeared, he said, that the extra taxation had been imposed to provide for the relief of unemployment. “The Government has stated that the proceeds of the additional tax ou petrol are to be used toy defence purposes,” said Mr. Jull, '“but I notice that the amount placed on the Consolidated Fund estimates for defence is about the same as last year.” The Deputy-Leader of the Government, Mr. Fraser: That is not correct. Mr. Barclay (Government, Marsden)': There is a million more. Mr. Jull: You look at the figures and you will see there is no difference. Mr. McCombs (Government, Lyttelton) : Have a look at the public works estimates. Hobby-Horse of Government. Defence, said Mr. Jull, seemed to be the favourite hobby-horse of the Government just now. It seemed that the Government was trying to unload every bit of expense it could on to defence. The Minister of Finance, Mr. Nash, in a statement in London, had attributed the expenditure ou public works to the needs-of defence. The Minister had not mentioned that this year’s expenditure on defence was almost identical with that for last year, when there had been no mention of defence. It seemed that the Government was concerned about public works expenditure and was trying to blame it on to defence. “I suppose it will be said that the Homer tunnel and the Plimmerton —I’aekakariki coastal road are for defence,” said Mr. Jull. “This road could be blown up by a toy boat.” Mr. Fraser: Who started the Homer tunnel? That tunnel, added Mr. Jull, had been started by the Coalition Government and he was one who had taken exception to it. The 'expenditure now going on had as much relationship to defence as the man in the moon. The extra taxation of £2,500,000 was for unemployment relief, and in addition there was £40,000 jn the Maori vote for the same purpose.