BUDGET DEBATE ENDED.

Gisborne Times, Volume XLV, Issue 4031, 10 September 1915, Page 5

BUDGET DEBATE ENDED.

REPLY BY SIR JOSEPH WARD

TAXATION PROPOSALS OE-

FENDED

NEOESSITY FOR GENERAL

ECONO AIY

(Press Association Telegram.} WELLINGTON, Sept. 9. j In. the House this afternoon the debate on tlie Budget was resumed by Mr Wright. He agreed in the main with the taxation proposals, but thought a small tax on exports would ho preferable to taxing farmers’ profits. He was glad to see there was no intention to place an additional burden, on the workers. Ho favored additional taxation on beer and also a preferential duty on foreign motor tyres. He considered, they could cheerfully face the extra revenue required. Exports had enormously increased. He saw no signs of any slump in pirices. People would pay much more to assist in winning in the great struggle precipitated by Germany. Mr Smith said one satisfactory feature of the Budget was that extra taxation on the laboring classes had been practically omitted. It was a sound principle that the bulk of the money required should he obtained from those who had made a profit out of the war. He did not favor an increase of the ordinary land tax. He condemned the agitation to sun-press raffles for patriotic purposes. Air Hindraarsh explained that a representative of the Labor Party had not joined the National Cabinet because, after Sir Joseph Ward and his colleagues joined, the Afassc-v Government had a majority to pass their proposals. He denied the accuracy of the statement- that the Labor party were actuated by a desire to nut all the taxation on the land. Ho favored heavy duties on luxuries.

Air Young said that in a crisis like the present, the Government had to call on all available sources of- revenue. He agreed on the main proposals in the Budget, but objected to fee-rosone and petrol taxation. The Budget proposed an increased graduated tax by 59 per cent. This tax had been inaugurated for bursting up large estates. To apply it _ to war taxation purposes was adopting p. dangerous principle. If there were no exemptions, for the land taxes were going to hit up the man who could least afford it. ‘ He wished the National Cabinet every .vucx-ss:

In the evening Sir Joseph Ward replied on the Budget debate. He said not one of the proposals suggested by lion members in the curve of the debate bad not been considered by himself in providing the Budget. The idea in framing the proposals had been to put the mam portion of taxation on those able to bear it and leave out the worker and the necessaries of life. The Government really ought to have had £600.000 at least mure than was asked for. No self-respecting Government- could permit their proposals to be altered, even if a combination were formed on” national lines. He_ was there with his colleagues to assist m putting the affairs of the country into a good, sound position. He had no personal motive. AYhat- they were asking for was a more fieabito to the fifteen hundred men who had already given their lives on behalf of the country and of those who were yet unfortunately to give their lives for t: at object. Ibe question simply was 1 could th-.-y best give their assistanc Detailing the criticism. Sir Jose j Ward said the total amount r-eceiv I from champagneiast year was £57<L. The increase proposed would ha- * given £B9O. As to taxing ainusemente proprietor.-: wore now paying^as muc : in income tax as if they codect-ed a small amount on tickets. He had thought the matter cut and was convinced that the proprietor -would pay more under the increased income tax than they would if they inaugurated a special tax. Tire suggestion to tax films was untenable. The proposal to tax motor cars line! also s-ron care fill i v examined and the bads upon which taxation had been arranged was considered preferable. Ho explained that the mortgage tax was necessary t-o prevent evasions of the Land Tax. He defended the proposal to raise the duty on spirits bv Is per mtllon cniv instead of 4s as suggested °in the debate. The- duty was 17s in Australia, the highest- in the world. Regarding the proposed beer tax. he argued that the brewing of lighter beers was desirable. The controller of customs showed him that the revenue required would bo provided:. The amount of increase to be charged against the brewers would amount- to about £87.600. This tax could not- be passed on to the drinkers. As t-o the suggested increased duty on cigarettes the'"Controller of Customs advised him that not much, more revenue could be expended from that quarter. _ As to mineral ore duties, if it- had been possible to have individualised oils, he would have been nre pa red t-o have altered the proposal, but- that could not be done satisfactorily. They must remember that it these * unties were nor raised, the alternative was extra taxation on the necessaries ot life. The tax on kerosene _wou!d not average more than £1 per year from those "who used the oil. That eras all the poorer people were asked to. contribute towards the war revenue. He -would see-if petrol for fishermen could not be admitted free of duty. The. graduated land tax could not be applied to town lauds, as it was not a bursting-up tax and, so far as the cit-v man was concerned, was more than counterbalanced by the heavy income tax paid bv the eitv man. Sir Joseph warned the people that the. issuing of State paper money -was a dangerous proceeding. It was notadvisable to establish a. State Bank, ‘linked un as we were with the Bank of New ‘ Zealand. Tlie Government would not abandon the system of sinkino- funds. He was confident the loan would be raised locally. One firm had offered to take up\£3so,ooo. The present system of taxing banks; was found satisfactory, but they were not paying as much as they should. He urged the need- for both public and private economy in view of the fact that no one could orophesy how long the war would last-. Considerable savings bad been made on last year’s estimates, and it was not proposed to spend all the votes on this year’s estimates. It- might be_ necessary to make still further savings in the' future. . . In concluding. Sir Joseph pointed out that the National Government was entitled to the support of members in their proposals. Any reasonable objection would be met if possible and such alterations could be made when the Bills were in Committee. Tlie House went into Committee ot Supply and passed the first item on the Estimates without- discussion. The House adjourned at 9.10 p.m.