THE WAGE TAX

Evening Post, Volume CXX, Issue 124, 21 November 1935, Page 28

THE WAGE TAX

BUILDING UP SURPLUS : The action of- the ■•■ in permitting a large surplus to accumulate in the Unemployment Fund Was criticised by Mr. G. H: Chapman,' Lappur candidate for Wellington* Nprth, at the Caledonian Hall, Sturdee.Street, last .night. ■•; :--.:"; : ' ':■?,. .-.:./..\': : -. : " ■> ■;; '>'...

Referring >to the wage tax, • Mr. Chapman said that the, Labour Party had fought very hard against the wage tax being: applied on ■ people .'.earning small incomes. , Its' efforts, however, \ were unsuccessful and 4he ,; GpyerrK. \ ment carried through" its. legislation, : imposing a .fixed "tax"of -at "first'3d land eventually Is in this pound on all : earnings; The .idea; behind- this, wa» . said to be equality ,'of sacrifice,' Thii ' "equality of sacrifice" /involved .the " taking of 3s from a man £3 per week. How, could' tblsAbe equality of sacrifice when .a man earning £IOOO a year had tOvpay - on;th» same scale?-; '■ • ■■.■".■'■ ,■•■-■■"•■■>.-, - i -':^b

The Unemployment Board, continued Mr. Chapman; had "arranged matters so that it had'a very .large surplus for the last eighteen months. He had constantly drawn attentibh~tb the«fact that the Unemployment Board was not paying out the mbheytit'wa& re? ' ceiving for: the,purpose tot, which'it was received.. It was',.stbring *up money. 7:. 'V ... V•. -;..-■ ; -,r

In March, 1934, the board had li surplus of £621,000, and at the same time the Minister in charge of the fund complained that hie could riot afford -to give the unemployediny bigger benefit. He could hot afford to increase the payments under the No.-,5 scheme. Since that time he (Mr. Chapman) : had called attention to'.thje fact?that the surplus, instead of diminishing, was increasing. - t "V; ', •-;- ..•'.\.--

At the end of March, 1935,-the cash in hand held by-the board amounted to £1,332,946. That, 1 continued Mr. Chapman," did not complete' the maV ter. . The Unemployment- Board; h»d investments to the extent of £449,000, and if the whole of its liabilities,which amounted to some £200,000 to £300,000, were deducted the Unempldynient Board at the end of September: should have had in'„ hand approximately £1,300,000. All. the time; requests for improved payments to the; men .on sustenance and the unemployed .workers were refused until •:. the> election ■was very near.- • ~ ; ; ;:\ "•.'■■■""'•".;

"I claim that .the ' Unemployment Board's funds were "being : for political purposes," said' Mr." Chapman. "What other cart be gathered from the fact that for eighteen months it has,been.storing up ' a surplus, and just before the election they give a few bob to those who are dependent for their livelihood upon the income they received from the unemployment funds." ' "•;'..'

Mr. Coates, continued Mr. Chapman, had promised to >firid.jobs for 9500 men. It would, have been far better ifc. djiring the past eighteen months; somewhat larger payments had'been-made to men on. sustenance and the men on relief work. He thought'there could be no question' about* It that every citizen in New Zealand would,have preferred the Unemployment : Furid to be in debt sooner, than have.th? position of a huge surplus being created. At the. conclusion of his address, which covered the.rn.ain' points .'of : the Labour Party's policy, Mr. Chapman was accorded, a unanimous vote ,6f thanks and confidence by a large and attentive audience'. . Mr. A. Parlane presided. .':';,

lIIGK VALUES

MR. CHAPMAN'S VJEWS

Addressing; an audience at the Cal* donian-Hall, Sturdee Street,-last night, Mr. C.H. Chapman (Labour, Wellingtotn North) said that it had been thfc policy of successive Governments in New Zealand, with very few exceptions, to formulate laws and regulations regarding land which had tha effect of creating high prices for land and low wages for labour. That had been the policy of every Tory Government which had held office in this country—it had been the policy of tha Reform Government, and it was tha policy of the present Government. That policy of high prices for land and low wages for labour, continued Mr. Chapman, followed British tradition. In other words 1 , conditions in New Zealand were becoming similar to the conditions which existed in the old. countries of the world. A condition was being created whereby there would be a few comparatively wealthy people and many desperately poor. That was according to the trarjtion. of Britain, but it was a tradition which Britain herself was departing from. In New Zealand land should be . cheap and wages high. Under those conditions, the people of the country would enjoy prosperity. The land policy which he favoured was one that ■would prevent speculation. The land policy of the Labour. Party, by eliminating speculation, would be ah immense advantage to the, producer. New Zealand's present land laws as amended by the Reform and Coalition Governments were useless in the prevention of speculation and aggregation. The.price of land had been forced up so that the ordinary working man could only acquire land" by incurring heavy mortgage liabilities!

A NEW ALLIANCE

MR. COATES AND LABOUR

A reference to what He considered was a proposed "entente cordiale" between Mr. Coates. and the Socialists was made by Sir Alexander Herdman, Independent candidate for Parnell, in a recent address in Auckland. Sir Alexander said that Mr. Coates, in an address in' the Kaipara electorate recently, was reported to'have stated: "I am not a place-seeker, and if tomorrow the Labour Party agreed to form part of a jiew National Government and made it a condition that my services were not required, I should cheerfully retire to the most remote of the back benches."

• "This statement was a most momentous one," Sai'd 'the candidate. "It was an open invitation to the Socialists to link up with the National Party. When Mr. Coates uttered those words was he really flying a signal of distress? Has he made up his mind that the present Government is doomed? Has he decided in'a fit of pique to throw ia his lot with Labour? His words require explanation."

The- candidate asked whether people were to understand that a Minister was prepared to swallow the whole or part of the Socialists' medicine prescribed by Mr. Savage. During th6next four years would Mr. Coates and his new political associates- provide the Dominion -with guaranteed prices and artificially-create credit?

"Then who. would comprise a new National Ministry?" Sir Alexander continued. "Mr, Forbes would perhaps be Prime Minister, and Mr. Coates, despite his professed willingness to ■ retire to the back benches, would probably be Minister of Finance. Mr. Savage and Mr. Nash would no doubt be imported into this proposed administration, and, of course, there would always be the prospect of Mr. Semple as Minister of Justice controlling the police and prisons, with Mr. Parry as Attorney-General in place of Mr. Forbes. The proposal of Mr. Coates should be considered witii the greatest care before the polling day arrives."