MODERATION DISPLAYED

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 12

MODERATION DISPLAYED

(By Telegraph.)

(Special to the "Evening Post.")

AUCKLAND, This Day

The "Auckland Star" says that little is to be found in the Budget to justify the hysterical fears that some entertained, and it also falls short of»the hopes of some of'the Government's extreme supporters. • It furnished unmistakable evidence that the Government meant at present to keep to the middle of the road in financial methods. Mr:.Nash'was as orthodox as most of his'predecessors. Admittedly he took over office in favourable circumstances. His' immediate predecessor produced a small surplus, and the revenues were fast increasing but when account was taken of the extravagant faith held by many people in ' the possibility of inducing universal . prosperity by legislation and of pressure upon the Government to give proof its first Budget of its devotion to that faith, the country as a whole has reason to feel relieved though hardly .pleased, at the Government's moderation. , '

If the Government's defence policy was-fully represented by Mr. Nash's remarks and estimate figures it failed to appreciate the implications of the international situation. What the country needed was an assurance that it would be provided with ■ the kind of defence reasonably likely to be suitable to the circumstances of these times. To build up the economic structure and standard of living was not sufficient. People who lived under that structure neecled protection from external attack The revision of taxation, was only a first step taken in the incidence of taxation. Some anomalies were to eCte-dt but tt was un^rtunate that the aim of relieving the burden on the people of small incomes had qnly been partially attained. Company taxation had the effect of taking a considerable sum from the small investor and this would be particularly noticeable under the new scale. Land tax bore more heavily on companies and really constituted a disguised addition to income tax. A fairer method than that operating would have been to place a large share of the increase on the shoulders of individuals and reduce heavy imposts on industry Industry was much in need of assistance Another weakness in the new tax scale was the removal of exemption on sums I s unemployment tax. These should be deducted as in the past