BUDGET DEFICIT

Evening Post, Volume CXV, Issue 40, 17 February 1933, Page 6

BUDGET DEFICIT

SALES TAX NECESSARY

BUSINESS MEN'S HELP

Tho assertion that with the co-opera-tion of the business community there would ho few difficulties in .the administration of the Sales Tax Bill was made by tho Minister of Finance (the Et. ; Hon. ,J. G. Coates) during the Committee.stages of the Bill in the House of Representatives this morning He also contended that,.apart.from the" cost of ..the Government's high exchange policy,, the sales tax would have been1 necessary in order to bring the deficit withm a manageable limit. . Mr. XJoates said: that amendments would.be made to the BUI as the result of the representations of business men who were desirous of helping the Government to assist in the smooth working of the administration of the legislation. , & Mr. J. A. Lee (Labour, Grey Lynn)Painless, instead of painful, dentistry? Mr. Coates said that the business men were working out suggestions which would be most valuable. He intended to confer with them again today, and in the meantime some of the clauses would be held over. ' It had been stated that the sales tax would involve large , increases of staff, but there would be nothing of the kind. Very little extra staff would'be required, and there might not be any need for additional help so long as the retailers and manufacturers were agreeable .to cooperating with the ■ Government;■'■"■ •If this co-operation- was forthcoming, nine-tenths of tho difficulties, would disappear, and he was glad to say that this aid was being received. Every speaker opposed to the Bill, •with the exception of one or two, had argued that the tax was being imposed in order to make up the additional gap made in the deficit .by the high . ex-1 change. Apart" altogether from the exchange, the deficit for the forthcoming year would be £6,100,000. " TREASURY'S 'ANTICIPATION.' Mr. P. Fraser (Labour, Wellington Central): The member for Dnnedin West (the, Hon.. W. Downio, Stewart) said that the cost of exchange • would bo £4,000,000. •- Mr. Coates: Yes, but ;he included £380,000 for extra exchange" on-inter-est for next year, but the • Treasury Department had bought up credits to meet this before even the 10 per cent The position was that the deficit for next yearj without the exchange, was £6,100,000. Some of the newspapers had stated that but for the exchange rato the deficit for next year would have boon only £1,000,000 and that there would have been no need for extra taxation, but that was all nonsense. "To my mind thqse, : who have endeavoured to take political advantage from the exchange policy will T>e running the other way in a years-time," said Mr. Coates. Mr. E. J. Howard (Labour, Christchureh South) saia that a full, statement should bo made in • connection with the Committee which was sup-' posed to be considering the Bill. One always looked upon these committees with suspicion as there was a feeling that they mighfr be seeking exemptions of their goods, .Mr. Coates: I may tell the hon. member that they are manufacturers and manufacturing retailers. Mr. Howard: They are not a group looking after their own industry. Mr. Coates: No, they are .endeavouring to help tho Government.