NO EXTRA TAXES THIS YEAR

Dominion, Volume 33, Issue 118, 12 February 1940, Page 8

NO EXTRA TAXES THIS YEAR

Statement By Minister Of Finance

BRITAIN’S PURCHASES FROM DOMINION £12,459,000 So Far Under New Procedure .(By Telegraph—Press Association.) AUCKLAND, February 11. A statement that no extra taxes were contemplated by the Government for the present financial year was made by the Minister of Finance, Mr. Nash, when asked what reduction of revenue would be caused by petrol rationing. Mr. Nash added that next financial year’s Budget was not yet completed. Mr. Nash, who arrived last night after a brief tour of the north, answered a number of questions about the effect of Government actions taken as the result of New Zealand’s participation in the Empire war effort.

Asked to what extent petrol rationing would offset revenue expected from the extra 4d. tax imposed by the last Budget as a defence tax, he said that 30 per cent, was the estimated percentage of curtailment in the use of petrol, but the sum of this percentage at 4d. a gallon was not yet known. ' He was also asked whether the prohibition of the importation of American motor-cars and the limitation on English models to a small percentage of last year’s figures would cause unemployment in Hutt motor assembly plants. Mr. Nash said that if the Dominion imported parts for only 30 per cent, of cars previously imported, it was unlikely that the same number of men would be employed, but there should be alternative employment available. Social Security. In reply to a question whether the Social Security Act provision for the beginning of universal superannuation on April 1 would be effective in view of the extra expenditure entailed by war measures, Mr. Nash said that any interference with the Social Security Act had not been considered. The estimated cost of universal superannuation during the next year was not yet available.

Speaking of the Government's negotiations with Britain for the sale of primary produce, Mr. Nash said they were practically completed, but might be extended at any time desired by the United. Kingdom Government. A summary of the whole position would be announced this week, but since the new purchase procedure was started till January 22 the sum debited to the United Kingdom Government on account of purchases from the Dominion Government was £12,459,000. Mr. Nash was also asked if he had any reply to make to the statement of Mr. Mulholland, president of the Farmers’ Union, that the Minister had broken a definite promise by introducing State purchase of hides. Mr. Mulholland stated that Mr. Nash promised that anything not requisitioned by Great'Britain would be left on a free market. Mr. Nash said he intended to make a full reply later in the week.