TOO MUCH OPTIMISM

Evening Post, Volume CXXVI, Issue 49, 26 August 1938, Page 6

TOO MUCH OPTIMISM

HARD CASH NEEDED

The Government was accused by Mr. K. J. Holyoake (National, Motueka) .of having given little serious consideration to the financial side of its social security' proposals. It had founded these on nothing more substantial than optimism. This was a desirable quality sometimes, but it would be found of little value when it came to the question of paying pensions. Hard cash was required for that. It would be no use hoping to !be able to pay pensions. The country wanted to know now where the money was coming from. Mr. Holyoake added that the country had not been given any clear indication of the cost of the scheme, beyond the first year. It was deplorable that the State should have entered a new field of taxation and brought the minors within the levy. When it became a question of taxing the sixteen-year-olds, surely the country had reached the limit of its taxable capacity. "If the Government finds that it needs additional taxation in the future, where will it get it from?" asked Mr. Holyoake. It will be turning out the pockets of the school children and robbing them of their marbles, while the flapper will not have a penny in her purse with which to buy lipstick. The Government should remember also that the higher the taxation the less is" the ability of the people to save."