Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, JULY 25, 1930. NASTY MEDICINE

Greymouth Evening Star, 25 July 1930, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, JULY 25, 1930. NASTY MEDICINE

JJEW Finance Ministers have had so unpleasant a task in presenting their first budget proposals as Mr. Forbes had, last evening, when he. had to announce an estimated shortage of over three million pounds in the Dominion’s revenue for the coming year. Mr. Forbes said that his was an unpleasant duty, and he appealed to the nation to face the facts and cooperate with the Government in shouldering the financial burden. The circumstances are unusual, and so must be the methods to deal with them. No question arises of the Dominion’s solvency, or ability to meet expenses, nor is any useful purpose served at present, by searching for scapegoats on whom to cast the blame for the present plight. No doubt, affairs over which the Dominion had no control, are partly responsible, but the national tendency to extravagance when times were good, has now to be paid for.

Economics in administration are to provide about half of the three >millions required, and higher taxation the balance. Neither method will arouse enthusiasm among those affected, but the fair-minded, whatever their political colour, should agree that Mr. Forbes has presented a good budget, all things considered. Mr. Polson should be particularly gratified as several of the proposals which he championed during his recent tour, have been adopted. Farmers, too, who have often agitated against the special land tax, should be grateful now their wishes in this direction have been met. The changed' Customs tariff and excise duties have previously been subject of comment, and have for the most part been more or less cheerfully accepted. Some protests were inevitable, but no serious error in judgment by the Minister has yet been proved. Perhaps, after the first .shock i.s over, the new taxation will also be accepted without popular indignation.

The augmented stamp duties should for the most part, receive little general opposition. The banks do well out of the privilege of issuing notes, and the extra duty will be a small burden on banking profits. Insurance companies, too, have been leniently treated in the past, and can now be fairly called upon to pay more, particularly as their State competitors are to have former concessions eaneolled. 'Town property owners, especially those who increase civic amenities by the erection of handsome premises, will not be encouraged to He enterprising in this direction by the deduction allowed now being based on. unimproved instead of capital value of their properties. Serious objection will be raised by racing (dubs, especially in the smaller districts ■where the sport deserves most encouragement. to i he increase in the totalisator duty. .Many (dubs already find it difficult io pay their way, and this extra impost may be as the last straw. Owing to trade depression, “tote” investments cannot be expected to increase, but rather the contrary, and the Clubs’ share of the profits, when any. will he smaller than before. The amusement taxation and the higher duty

on films may make picture shows dearer, and if. will be the poor who will be the hardest bit. , The ten per cent, increase on income tax must be accepted as a regrettable necessity, temporarily at any rate. Nor will any serious protest arise over the increased death duties on the wealthier estates. Indeed, there is margin left for further action, in this direction. Summed up, Mr. Forbes can be congratulated on making the best of a ' bad .job, and all will hope that when the next Budget is due, the trade outlook will be much brighter, enabling considerable reduction in taxation. Meanwhile, the Government should continue io effect administrative economies, for the public do not accept the claim that little more can be achieved in that direction. That Ministerial cry has always been raised, yet, when pressed, scope w T as found for less extravagance. The Budget w ill not be popular, but many tax-payers will be relieved to find that the demands on them are not more.