A BUDGET

Evening Post, Volume CXX, Issue 125, 22 November 1935, Page 12

A BUDGET

DEMOCRAT PLANS

MR. HISLOFS FIGURES

"IT MUST BE DONE"

APPEAL TO ELECTORS

In elaboration of the financial x proposals which the Democrat Partyhas already placed before the country, the Leader of the Party (Mr. T. C. A. Hislop), speaking at Hukanui last evening, submitted a Budget with the object of proving that the party's plans can be put into operation and the public accounts still show a surplus of £81,000 on the year's working. He appealed to the public to support Democrat candidates so that his party might have an opportunity of putting its policy into :effect. "The policy of the Democrat Party has been the subject of great interest," said Mr. Hislop. "The people of New Zealand have realised that it is the only sound policy through the application of which there is some prospect of real recovery in the future. It is* the most comprehensive, detailed policy that has ever been put before the electors. Our opponents have attempted to ridicule our proposals, and they have stated on all sides that 'it can't^ be done.' My reply to them is that it can't be done' has been the cry of the defeated through the ages. We must hold our heads up and go forward boldly and courageously determined that 'it must be done.' "I have promised to the people of New Zealand a budget showing in detail how we propose to put our policy into effect. Tonight it is my privilege to present that budget to them. Let us first deal with expenditure. This we have provided in the following way:— £ Permanent appropriations .. 10,634,000 Annual appropriations 8,740,000 Salary restorations, superannuation fund subsidy, and general 850,000 Subsidies to farmers 3,750,000 Total £23,974,000 "Reviewing ' the above items, it should be noted that the actual permanent appropriations for the year ended March 31, 1935, excluding main highways and exchange, were £10,507,225. We can show a substantial reduction on these permanent appropriations by carrying into effect certain of the recommendations of the National Expenditure Commission and ,by various readjustments, such as a review of the Amortisation Fund commitments on the Public Debt. The amount I have shown, namely £10,634,000, includes the interest and sinking fund on the proposed loan of £8,000,000 for national development and unemployment purposes. "With regard to the main highways taxation, we have adopted the policy that this taxation should be used wholly for the purposes of main highways, and with this object in view we have included neither the revenue from this taxation nor the payments on account of main highways. ANNUAL APPROPRIATIONS. "The actual annual appropriations for 1935 totalled £11,057.833. We can reduce this to £8,740,000 on account of savings through our national health and pensions scheme, arid on account of savings through maintenance overcharges, depreciation, and general administration, following the recorn-" mendations of the National Expenditure Commission and the AuditorGeneral. I will deal with the health and pensions scheme a little later. "With regard to subsidies to farmers, after a very careful survey we have set aside £3,750,000 as the maximum amount likely to be required. This provision has been made to show the effect if the whole of the exchange were removed immediately. It should be remembered, however, that we propose that exchange shall not be taken off immediately, but shall be gradually brought down in a manner that will give best results to both town and country. In these circumstances the amount of subsidy payable will be small to begin with, gradually increasing as the rate of exchange is reduced, until we finally arrive at the maximum figure . which I have set down. When primary produce prices rise to normal paying levels the subsidies will be reduced proportionately, thus enabling us to make further taxation deductions. UNEMPLOYMENT. "Referring back to unemployment. I would stress the fact that the interest and sinking fund on the proposed loan of £8,000,000 has been included in our estimate of Permanent Appropriations Budget. Any subsequent loans will be provided from the balance of the contributory tax of 6d in the £, which will bring in more than the amount estimated, once the employment scheme is under way and our general policy begins to take effect. THE REVENUE SIDE. "Our estimate of revenue is £24,055,000. This estimate is based on Mr. Coates's estimate in his 1935 Budget, and also Mr. Dpwnie Stewart's estimate of Customs and other revenue "increases following exchange reductions. Mr. Coates himself recently admitted that he had underestimated revenue for the coming year by a very considerable sum, and there is no doubt that there would be large revenue increases following the application of our general policy. For Ihe purposes of comparison it should be noted that the total revenue available to the Government for the year ended March 31, 1935, including the unemployment tax, amounted to over '£30,000,000. Our estimate o£ total revenue, including the health insurance contributory tax, is approximately £27,800,000. We have not included sales tax or the gold export duty in our revenue estimates, as we propose to abolish these two taxes. In addition, our estimate for income tax shows a reduction of 10 per cent, on that of Mr. Coates's, as we propose to reduce this tax by 10 per cent. "Summing up the position, it may be seen that our Budget estimates arc as follows: — £ Revenue 24,055,000 Expenditure 23,974,000 Surplus £81,000 HEALTH INSURANCE AND PENSIONS. "With regard to the National Health Insurance and Pensions Scheme, the following is the estimates of revenue and expenditure:— REVENUE. £ Contributory tax 3,750,000 From annual appropriations (included in estimate) 1,900,000 Total £5.650,000 EXPKNDITURE. £ Pensions 4.000.000 Health insurance 1.650,000 Total £ 5,650,000 "There In brier are our proposals with regard to the financial side of our

policy. The figures given are based c<i the 1935 Budget and on the public accounts, with due regard to the inaccuracies therein. Our estimates have been very carefully prepared after the most exhaustive inquiry, research, and analysis on the part of competent and experienced Tuen of practical affairs. I have, I am proud to say, a clean record of public service, and I am not without knowledge of matters relating to public accounts and finances. I am completely satisfied, as are the members of my party, that these proposals'can be put fully into I effect. I would stress the fact that for many years, until as late as 1932, our annual taxation has always been in the vicinity of from £17,000,000 to £18,000,000, during which period the salaries of our civil servants and our social services were maintained at peak levels. Today our taxation has leaped up to £25,000,000 per annum, despite the fact of wholesale wages cuts and dismissals. The exchange rate and the method of dealing with unemployment are the principal causes of this enormous leap. By getting back to sound principles, there is no reason why our taxation should not be returned to its previous levels, and that is our aim. A WARNING ISSUED. "In conclusion, I would warn the people of New Zealand tiiat the day after I have presented this Budget to them the " Government will make frantic endeavours to disprove the truth of my statements. That coterie of academic young gentlemen, best known as<the 'Brain Trust,' and those members of the Treasury, or exmembers, who have received favours at the hands of the Government, will be busily engaged in producing reams of statistics in an attempt to prove that my estimates are wrong. Mr. Coates and Mr. Forbes, and possibly all the other Ministers, will issue statements that have been carefully prepared for them by these gentlemen. On many occasions during this campaign I have proved their statements and their figures utterly and completely wrong and misleading. It is unfortunate that I should be compelled to issue this warning to the people of New Zealand not to be misled by the propaganda of the Government. I have stated at all times that I welcome constructive and helpful criticism, but in the case of members of the present Government I have had nothing but the worst type of abuse, misrepresentation, and distortion of fact. "I recognise the tremendous responsibility that reposes in me as Leader of the Party putting forward a policy which will affect the future destinies of every man, woman, and child in New Zealand. It is a responsibility which I shall not evade, and which I have not evaded. Nothing that my political opponents have said has disproved any single one of my statements or my proposals. I have shown to the people of New Zealand the way out—the way back to peace and security. With all my heart, deeply and sincerely, I believe in our cause and in the policy which I have put before you. I appeal to the people of New Zealand who believe in our ideals and our policy to support us in our great task by supporting the candidates of my party."