The Gisborne Herald. IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, MONDAY, AUGUST 11, 1947. MR. NASH ALLOWS A PEEP INTO THE BUDGET

Gisborne Herald, Volume LXXIV, Issue 22404, 11 August 1947, Page 4

The Gisborne Herald. IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, MONDAY, AUGUST 11, 1947. MR. NASH ALLOWS A PEEP INTO THE BUDGET

J T is seldom that the New Zealand public are vouchsafed from an official ministerial source even a partial preview of the Budget. Mr. Nash’s week-end statement on the withdrawal or reduction of subsidies from certain goods and services was a matter of intense interest to the whole community. Only up to a point, however, was it illuminating. No doubt the Arbitration Court, for whom the announcement on developments during the current year was: primarily intended, will be in possession of more detailed information. The Minister explained that the court, in its present consideration of the new wage structure, must have before it facts that will enable it to make certain readjustments in accordance with the provisions of the Budget. Although the comment of Gisborne retailers on the summarised version of the statement made public may be in some respects not far from the truth, it is impossible to speculate with _ complete accuracy on the final outcome, of the removal or reduction of the subsidies mentioned—those on fresh fruits, meat and bacon, tea and sugar, imported raw leaf tobacco, and sea and rail fares and freights. Much depends on the tax revision programme the Minister has in mind. While it is true that the continued burden of war debts and heavy social security commitments forbid any optimistic hope that taxation concessions will be liberal, it will surely be possible to pass on to industrialists and the people generally the partial relief which should be possible as a result of the State’s shedding of some of its subsidy commitments.. Subsidies on staple articles of food have been recognised as a boon to the consumer, but it lias been apparent for some time that, as a system, the payment of them had to bo pruned some day. Mr. Nash is evidently of the opinion that the time has come to make a start. It is inevitable that prices of the articles enumerated in the schedule will have to rise, and it is equally inevitable that the Arbitration Court will protect wage-earners to at least some extent by ordering what it will deem appropriate wage increases. Whether or not the old vicious economic spiral will he held in check by the promised continuance of the stabilisation and price-fixing policy is a moot point. It can at any rate he hoped with a restrained show of confidence that stabilisation will serve its purpose until world trading has been placed on a sound working foundation.

Generally speaking, subsidies on luxury lines are not desirable. For this reason smokers cannot complain unduly about the withdrawal or the reduction of the subsidy on imported raw tobacco leaf, especially if there can he a guarantee of an early increase in the output of the locally grown and manufactured product. In any case, the, removal of the Avar duty—if that is contemplated—would help to keep the price from rising too high. The subsidy on tobacco has meant that indirectly the whole community has had to pay for a comfort enjoyed hv a section. The possible effect of the now policy on tea, meat and sugar is more perturbing. In order to enable people living on small private means, and particularly elderly people living alone or in couples, to cope with the new conditions there should he suitable adjustments in the social security structure and in pensions.