TAXATION TALK

Evening Star, Issue 22893, 26 February 1938, Page 14

TAXATION TALK

PREMIER JUSTIFIES LABOUR HALF “HANDED STRAIGHT BACK*? - [Special to ; thb * Stak.’l FEATHERSTON, February 26. The Prime Minister told his listener! at the Labour Representation Committee’s picnic at Tauherenikau Racecourse this afternoon that he was going to bo quite frank about taxation. As the result of better times the taxation revenue last' year, increased by. £5,500,000 to the record sum of £31,000,000, which admittedly . was “ a mighty lot of money,” but the test, he continued, was what this big revenue was used -for. . To begin with, £11,000,000 went to pay the annual charges of : the national debt, a legacy from previous Governments. .The sum of £18,000,000 was Eaid for social services, including ealth, education, pensions, and'unemployment relief. Thus, he declared, more than half the taxation was handed straight back to the people. Approximately £3,000,000 was spent on highways, and . the rest, of the money went for essential repairs, defence, and administration. s It was' true that taxation was less under what he termed the “ depression Government,” blit at that time • incomes and wages were much' lower, and.social services were shamefully ini adequate. . u “We hear a lot about high taxation,” continued the Prime Minister. "The test- is; What - havepeople left after-Jlpayingi£th« taxation? Since" 1935 the: aggregate private income has increased-by .at least £37,000,000, while taxation revenue has .‘gone .up £lO million. The 'extra mdney loft for the people is £27,000,000, and the surplus appears to be a good dividend. - 1 “ Taxation to -provide social services is part of the Government’s policy of redistributing the income.’’ said the Prime Minister, with emphasis. "Can New Zealand afford its social services on the present improved scale? I say ‘ Yes,’ and I defy anyon# to disprove it.” He asked critics to look at the nation’s resources and the expenditure on luxuries. ■lt had been said that hi! Government was in too .great a hurry to make conditions better for the feople. Surely,.that was a goo^.fault, hey began on the quick elimination of social misery, increasing wages and pensions, .extending the pensions scheme to 10,000 invalids who formerly were among the forgotten people, and lifting the unemployed out of starvation. They had established national control of the "public credit, and remedied the main fundamental defect* in our financial .system. , . ■■ “ It would' take hours to give ,***• the Government’s, achievements;in aetail,” said Mr Savage, concluding bis taxation references*; " put the quickest and surest way to realise their effect and value is 'to look back at the widespread misery ip New Zealand a few years ago arid then' study the broad evidences of real prosperity to-day. •