NO TAX RELIEF

Evening Star, Issue 25567, 21 August 1945, Page 4

NO TAX RELIEF

BUDGET TOTAL SWOLLEN BY £34 MILLION SOLDIERS' GRATUITIES ACCOUHT FOR £lB MILLION (P.A.) WELLINGTON, August 20. In a statement issued to-day the Minister of Finance, Mr Nash, referred to the (undertaking he gave on the occasion of the recent adjournment of Parliament to submit revised estimates of New Zealand’s war costs ” conse : quent upon the conclusion of the conflict. Revised estimates had been prepared up to tlio probable .date of demobilisation, which should be reached early next year, dependent, of course; on the availability of shipping and other important factors affecting the position. “ After their return to New Zealand the men will be entitled to. draw the balances of their pay,” Mr Nash said. “Then those who are qualified will be given .three months’ leave on full p'ay and allowances. Provision has also to be made for mufti allowances, deferred pay, and war gratuity. “ Allowing for all these factors,” Mr Nash continued, “ the revised Estimates for the War Expenses Account expenditure are as follows, showing for comparison the actual Budget figures _ rearranged under appropriate headings (the first figure in each ease represents “Budget estimate, 1945-46,” and the second figure represents “ revised estimate to demobilisation ”): —

Grand totals ... 105,400,000 139,249,000 “ Most of the foregoing items are self-explanatory,” stated Mr. Nash, “ but it is pointed out that in connection with the item ‘ war and other stores ’ there is no question of continuing the importation or manufacture of such stores,-but provision requires to be - made for meeting the charges in respect of goods already supplied or shipped. A large portion of the provision, in fact, relates to stores of lend-lease origin. . “The expenditure contemplated under reverse lend-lease,. beingassistance given to our American allies, has been tentatively stated at £22,000,000 under'the amended proposals, showing a possible reduction. of £2,000,000 against the Budget estimate. It is not possible at this stage to fix any final figure under this heading, as the amount' required for this purpose will depend on the result of the negotiations on reciprocal policy between the Governments concerned.”' In regard to gratuities, which are estimated to cost £18,000,000, Mr Nash said that while the procedure for these, as was indicated in the Budget, was at present being worked out, it was necessary to make .financial provision for the amount involved.

“ From the factors mentioned it will be appreciated that it is difficult to estimate how much of the sum of over £139,000,000 will come to charge during this financial year,” added Mr Nash. “ but any amount not expended by March 31 next will come to charge early in the next financial year. Now that the war has. ended the Government is anxious to have all matters completed as soon as possible.

“ It is clear that there will be no scope for the adjustment of taxation this financial year,” the' Minister added. “The Govern-* ment, however, fullv realises the necessity for reviewing the taxation position at the earliest possible opportunity in order, first, that the taxpayer may be relieved from some of the financial burdens he has borne during the war period, and, secondly, that industry generally may be given that scope and impetus to reorganisation and development so essential to provide worthwhile permanent employment in industry our men and women coming out of the armed forces.”

Budget Revised estimate. estimate. £ £ Pay and allowances Accommodation, food, 35,200,<000 38,972,000 and clothing Wav and other 5,500,000 5,972,000 ' stores Medical and educa21,170,000 22,029,000 tional services 640,000 937,000 Land, buildings, etc. 2,100,000 2,115,000 Repairs, mainten1,467,000 . ance, etc 1,100,000 Transport ... Miscellaneous ser5,500,000 9,257,000 vices ... Empire air training 1,094,000 1,424,000 scheme ... 3,096,000 3,096,000 Total ' ... 75,400,000 85,249,000 Reverse lend-lease 24,000,000 22,000,000 Ancillary 4,000,000 6,000,000 3,000,000 Rehabilitation 2,000,000 Deferred pay — 5,000,000 •Gratuities ... ... ... — 18,000,000