THE BUDGET

Evening Post, Volume CXXXII, Issue 32, 6 August 1941, Page 6

THE BUDGET

DOMESTIC SPENDING

'A DANGEROUS RATE

MR. McCAUL'S VIEWS

A strong disinclination on the part of some of the other members of the Wellington Chamber of Commerce to express their views about the Budget without further consideration did not prevent Mr. M. G. C. McCaul from saying what he thought about certain aspects of it at last night's meeting. Mr. McCaul's chief complaint was that the Budget had the same serious faults as that of the previous year, and that the "uneconomic and highly-dangerous rate of domestic expenditure is being intensified at a time when we should be husbanding our resources for the war effort.'" Mr. McCaul said that the Minister claimed to have maintained economic and financial stability, but the claim was not well founded. "The expenditure on other than war purposes," he declared, "is very much too high and has created a position of economic and financial- instability which is * serious danger to the future welfare of the people. "The Minister estimates the total taxation for the coming year at £63,683,000, of which £20,846,000 will be allotted to winning the war, and £42,837,000, plus a Public Works loan of £12,950,000, total £55,787,000, to a continuation of extravagant expenditure in the vain hope that somehow, some day, sheer waste mtgn"t-.: create real prosperity. . , ' "The commercial and Investing classes have raised no objection to high taxation for the prosecution of the war. What we object to is that our hard-earned money is splashed around on State extravagances. "It is sound policy to tax.heavily at a time of expanded State ex* penditure. In wartime, taxation should be spread fairly over all classes, and up to the extreme limit that can be exacted without freezing the sources of taxation. In short, the Government should take all it can without killing the goose. LONGER HOURS. "Thexonly way to prevent inflation, and to ensure economic and financial stability during' the present time of stress," continued Mr. McCaul, "is for all the people to work longer hours, and harder, and for the Government to tax heavily and wisely, and to b* scrupulously careful in the expenditure of every penny. "In his Budget statement, the Minister says:—'Short supply of consumption goods is inevitable while the whole British Commonwealth of Nations is making a gigantic war effort involving the loss to industry of millions of men and the call upon industry for enormous quantities of supplies to equip and maintain our armed forces.' He omits to add that New Zealand's gigantic war effort on the home front is limited to a 40-hour week, and any* thing in excess is subject to penal rates of pay." The chairman (Mr. A. L. Wall) interrupted Mr. McCaul at one stage in his remarks to, point out that he was touching more on .the political side than on the. economic side. .'..-■' Mr. McCaul: Mr. Chairman, it has ali ways been the custom of this chamber to discuss the' Budget, and if the time has now come when we are not allowed to do so. then what is the use of our meeting?' . Mr. M. F. Xiuckie: What is going to happen after we have discussed it? Mr. McCaul: I hope that we can at least express our opinions as representatives of the commercial community. Mr. Luckier' I move that we go on to the next business. THE MAIN QUESTION. Mr. Frank Wilson said the main question today was the war effort and the need for making it 100 per cent, effective. Civil expenditure be relegated to .second place. Captain S. Holm said that the Budget required some consideration. "Here it is sprung on us " Mr. McCaul: "It is not sprung on us." He pointed out that it had been introduced on July 16.

Captain Holm: It is not on our agenda. We have the,example of the Opposition" letting the Budget go and concentrating on the war effort, and I do not think it would be to the credit of this chamber to discuss it without a lot of preparation. I think a lot might be said that will not assist the chamber and certainly not ttie war effort.

Mr. N. S. Hunt said he would like it made plain that what Mr. McCaul had said was his own personal statement and personal opinion.

Mr. W. H. Hindle wanted to. know whether the chamber was afraid to express an opinion on these tilings. Hi supported Mr.^ McCaul's statement. The chamber passed on to the next business.