"UNFAIR PICTURE"

Evening Post, Volume CX, Issue 31, 5 August 1930, Page 10

"UNFAIR PICTURE"

! COUNTRY'S FINANCE

TAXATION DISCUSSED

FARMEES' RESOLUTIONS

'A representative meeting of the New Zealand Farmers' Union, Sheeppwncrs' Federation, Employers' Federation, and Counties' Association to-day 'discussed the Government's taxation proposals. Mr. "W. J. Pols v (president of the Farmers? Union) presided.

Mr. Poison said they were profoundly dissatisfied with the taxation proposals as displayed by the Government, The position of the country desperately needed measures of economy, and' we had to get to pre-war methods of expenditure instead of carrying on with post-war methods. Mr. Poison maintained that the Government had . placed the worst construction on the figures. Losses by the railways were displayed in the Budget, but on the other hand ,€530,000 of Postal profits wero not set off against the losses. He contended that the increased burden was unnecesasrily severe. It was proposed- this year to raise £20,070,000, which was an increase of £510,000. Last year revenue was under-estimated by half a million, and he claimed that revenue this year had been under-estimated by a million. Ho contended that the Budget might have been practically nearly balanced by the exercise of more economies with practically no actual extra taxation at all. There were only two attempts at economies, in railways and defence. Had a similar method boon employed by heads of other Departments ho believed that the economies might have easily amounted to a million. MORE ON BEER. "Generally, said Mr. Poison, an unfair picture had been painted. If it was necesary to increase taxation, he submitted luxuries might have been taxed. "Why put additional on beer, and_3d on petrol? he asked. Beer was a luxury, and the taxation on it should nave been . considerably heavier. Dealing with the petrol, Mr. Poison contended that the. taxation would add a, burden on the farmers' shoulders. Of that £450,000, to be raised by the extra 3d, the Government would take back £316,000. ,In his opinion it was time for them to get together and makes some definite .representations to tho Prime Minister. - MR. FORBES'S BOLDNESS' Mr. J. S. Jesscp (Gisborne) said he thought that at iirst they should'congratulate the Prime Minister at least for boldness. It would have been so "easy to suggest raising a loan. They might disagree as to the details of the measures taken to balance the finances, but, as thinking men, he thought they should express their appreciation at the manner in which the Prime Minister had boldly stated the proposed shortage and how ho proposed ito meet it, Mr. i\ Campbell (Employers' Federation) said he would like to hear if the meeting wore in favour of the proposed economies, and if any other economies could be suggested. There was fiefence, for instance. Would it be popular to suggest that the education vote be reduced? "Was the position as set out by the Prime' Minister correct?' asked Mr. J. . Bitchencr, M.P. Before the statement was published the Prime Minister should have gone very thoroughly into the figures and seen,, where lie could economise. Mr. Bitchcner said he did not think for one moment that the position was as bad a's it was painted. He thought that the Budget might easily be trimmed up. The Post Office had made a profit of half a million, but had not been taken into account. If there was taxation, it should be on the luxuries of life,'rather than on tho neccsMr. J. 11. Joll (Hawkes Bay) said there was only one thing to do, and that was to cut down the expense of running the country. That there should be a strong protest against any increase in tho - cost of living was the opiuion of Mr. T. Currie (Wanganui). Mr. Poison said that farm prices were just about down to the pre-war level, • but. costs were 70 per cent, higher. TOBACCO AFFECTED. Under the new proposals, said Mr. J. Martin (Nelson), the tobacco industrywas going to be crushed. At the present, buildings newly erected were just "beginning to pay. . Mr. B. Hammond (Hunterville) suggested that the education and agriculture rates might be "cut." He commended Mr. Forbes for not raising another loan, but suggested that other Government Departments should economise, particularly those showing profits. Mr. Jessep said he trusted that the Bailway and Defence economies would be permanent! Ho moved a motion approving of them. Captain H. Eushworth, M.P., said Ihat a Defence Bill had not been prepared, and he did not know what the economies would be. How could he, then, support Mr. Jessep's motion? Mr. Jessep's motion was carried in this form: "That this meeting approves of the suggested economies in the Railways and Defenes." RESOLUTIONS CARRIED. The following resolutions were ear-Tj-cd:—"That this meeting is emphatically of the opinion that the Dominion's financial position calls for immediate public economy; this meeting strongly protests against the continuance of Customs duties on the necessities of life and the means of production, believing such duties would defeat the only real remedy—i.e., greater production through a lower level of costs; that this meeting expresses satisfaction nt the withdrawal by the Prime Minister of the super-tax on land imposed last year; that this meeting unanimously supports the imposition of income tax in lieu of land tax; this meeting considers that if additional taxation is required more revenue should be obtained by increasing the taxation on luxuries; that as the time has arrived when the users of roads should construct and maintain them, this meeting approves of the imposition of. the proposed increased tax on. petrol, provided that the proceeds of such taxation are used for relieving tho burden of rates in the maintenance and formation of roads,' and not for directly or indirectly relieving the Consolidated Fund; this meeting asks the Prime Minister to appoint a Select Committee—(l) to make careful investigations into the important matter of the derating of agricultural and pastoral lands in other countries; and (2) to consider the advisability of exempting all farm, lands in the Dominion from rates for roading purposes; that as in the opinion of this meeting the restriction on industry arising from the operation of the Arbitration Act is one of the prime causes of unemployment the Government be again urged to put into legislative effect the employers' recomjnendations.following on the Industrial .Conference, 1928."

Representations arc to be made 1o the Prime Minister to-day.