BUDGET COMMENTS

Greymouth Evening Star, 26 July 1930, Page 5

BUDGET COMMENTS

■i ' "TOTE” TAX CRITICISED. EFFECT ON STAKES I ’ I [SPECIAL TO “STAB.”] AUCKLAND, July 25. “The general effect of the increase of the Government tax from 2i per cent, to 5 per cent, from the totalisator pool, must be bad, and will probably lead to a reduction in stakes, with fewer owners participating in the sport. The extra tax will no doubt serve to further illegal betting with bookmakers,” said Mr W. S. Spence, Secretary of the Auckland Racing Club. “At present the State receives 2| per cent., and the racing clubs 7 per cent., but it might be explained That in addition to the 2 * per cent.

totalisator tax, the Government alsc takes s,,pei* cent, dividend duty, which makes a net 7 per cent, on the total turn-over. The Government takes really 7 per cent, against the racing clubs’ 74 per cent, but it must be borne in mind that out of their 7£ per cent, the clubs have to pay all working expenses so that the Government, without any expense whatever, takes more from 1 the tote at the present moment than do the racing clubs. Now, the Government is going to take cent, on top of that so that it will clear 9 per cent, of the totalisator turnover, and the clubs have to take the risk of the success or otherwise of the race meetings. ( “Probably, if the Government amended the Gaming Bill, and allowed money to be transmitted through the telegraphs direct to the secretaries of clubs there woujd have been sufficient additional revenue' to meet the taxation. Racing has for sohie seasons felt the severe handicap of even the present taxation, and this is shown by the very large number of horses sent to Australia to do their racing. The indirect effect of the taxation will be the best of our horses- going to Australia to race, fewer owners . here, and decreasing public patronage. In taxing racing the Government does not appear to have taken into'consideration the large amount of revenue it receives indirectly from the sport by ,way Of transport of racegoers, freight on horses, feed, etc.-, and the general result of overtaxing the sport may easily defeat the ends the Minister has in view.”

“I have little to say,” said Mr A. G. Magee, secretary of the Auckland Trotting. Club, when asked what effect the additional tax would have upon trotting. “We accept the position with a. smile,, because everything is Wxed and that'is all there is to it. But I do say this, we expect the Government to do its job and clear up the bookmakers, and enable clubs to pay the taxation and at the same time keep the stakes up. The taxation is going to turn the betting public to the bookmaker more than ever. We have got to give good stakes to encourage th.e good horses to out- meet ings.” . - ,4 Mi’ J. Rowe, President of the Auckland Trotting Club said thelClub had always accepted its load of taxation and would continue to do so. '

MOTORISTS’ OPPOSITION.

WELLINGTON, July 25.

The proposals in the Customs Tariff and the. Budget touching , motorists were strongly condemned by Mr A. E. Ansell, Reform membei‘ for' Chalmers, is President of the South Island Motor Union, in an interview this evening. He said that the proposals would be met by great opposifioh from motorists in general and from their organised bodies.?.. In the petrol ’tax alone, £750,000 extra would' be paid. The discontinuance of grants from the Consolidated Fund and the Public Works Fund for the highways, and also the payment of interest on the basis of the transfer of £1,226,000 from the Public Works fund to the highways construction fund, he said, was unjust. It reflected no credit on the authorities as being an evasion of moral responsibility, as the past grants had been made by Parliament free of interest. The Government was throwing the' whole cost of 10,000 miles of roads on the motorists and local bodies, and refused to contribute anything /towards their maintenance. The petrol tax was'a clumsy way to tackle the matter of putting the road competition with the railways oii a more equitable basis; for many roads and their users were not in competition with the railways. With all the extra taxation, the highways programme could not be expedited nor the counties given any substantial assistance. The towns and cities, although contributing heavily to the fund, received no benefit. Motoring was taxed like a luxury, but it was not one.

DUTY ON BARLEY.

CHRISTCHURCH, July 24.

Tho North Canterbury Farmers’ Union executive to-day carried a resolution, protesting against the removal of tho duty on barley, othei’ than for the manufacture of beer. Tho executive telegraphed the Prime Minister as follows: —

“In practice this will be tantamount to the total removal of the duty, which will- result in a local industry of considerable value to the community being ruined for the very doubtful benefit which it is assumed will be enjoyed by the industry yet to be established.” PROFESSOR’S REGRET. ) DUNEDIN, July 25. Commenting on the Budget, Dr. Fisher, Professor of Economies said that there could be little doubt that the advantages in the equity and certainty of direct taxation, and especially of graduated income tax, were so overwhelming as to make this definitely the most economic and effective method of s raising revenue. It was therefore regrettable that so much of the new revenue was to come from increased Customs duties. Discussion on these had already shown how difficult it was to determine who actually paid the tax, and it was probable that the burden eventually fell on people unfitted to undertake it. From this viewpoint, the poll-tax proposed for unemployment was mediaeval barbarism, which should have been dis-

carded from the thought equipment of civilised communities.

AUSTRALIAN BUDGET.

MR. SCULLIN’S DEFENCE.

CANBERRA, July 25

A vigorous defence of tlje Budget was given .in the House of Representatives by the Prime Minister. Mr. Scullin said that he did not mind constimctive criticism, but he saw no justification for wholesale condemnation that had recently been heaped upon tho Government by the Press and by its opponents. If it could be substantiated that, any of these charges were true, then he would gladly hand over the reins .of office to those who could undo any' wrong that the Government had done. Mr. Scullin detailed a long list of economies that have already been effected. ’ lie declared that he saw no reason foF a reducing of the Parliamentary or the public servants’ salaries. Ho assured the House that the Government was making a sincere effort to balance' the ledgfer and at the same time keep faith with its financial obligations hero and abroad. The Government, said the Prime Minister, ha,d to face facts. It had taken drastic action to stop the drift, but it had necessarily done some unpleasant things. It was determined to make further economies,' and, if necessary, he would face the electors at any time.