NO WASTE

Gisborne Times, Volume LXIII, Issue 10140, 28 October 1925, Page 5

NO WASTE

FINANCE'; AHNiSTER REPLIES

TO SIR JOSEPH WARD

INCREASED EXPENDITURE EX- ' PLAINED.

* ASHBURTON, Oct. 27. The Hon. W. . Nosworthy to-day made a statement in rply to Sil Joseph Ward’s speech at lri verb argil! Ho said: “In the press reports of Sir Joseph Ward’s speech-- the. Government is practically charged with excessive borrowing since the end of 1919, which marked the close of the National Ministry.. It has, I think, already been ample demonstrated that, tiie Government exercised great prudence in the expenditure of loan money, but 1 would point out that since April 1, 1920, up to March 'Ol, 192-5, the public debt increased by £26,600,000, an annual average ol little more than £5,000.000. It must not be overlooked that the expenditure on public works was reduced to a minimum during the war period. Further, in making comparison with the pre-war rate of loan expenditure it is necessary to take into consideration the fact that prices and wages have increased by at least 50 per cent, in the interim. Over the period mentioned the debt under certain heads, mostly war expenses, showed a decrease of £7.500,000. Added to the net increase, this meant that approximately £34:,000,000 ad ditional moneys had been borrowed for other accounts. Of this sum £27,000,000 was borrowed for pro ductive purposes, including £16,500 000 for interest-earning public works notably railways, telegraphs and elec trie supply, and £7,000,000 for State advances. A further £3,700,000 was mostly expended on immigration ana roads, much regarded as indirectly rodupetive, while the remaining £83,000,000 was spent for the most part on public buildings, including schools It might be here mentioned that though the debt has been increased by £26,000,000 interest and sinking fund, charges met out of taxation show no increase during this period “In regard to the important que* tiou of taxation,” continued the Minister, “Sir Joseph Ward is reported to have said, ‘Next to Great Britain, New Zealand is the most heavily taxed country in the world per head of population.’ Without going-' further afield than Australia, the latest available statistics show that tlie amount per head foi the Commonwealth works out at £l2 6s 7d for the year ending June 1924, compared with our rate of £l2 3s 5d for the last financial year. I would like to analyse the £l2 3s 8d per bead for this Dominion and see where it all goes .to. Firstly, 5s 6d represents tire tax and. motor registration fees, which go to the maintenance of the main highways and is not available for general purposes; secondly, war debt and war pensions absorb £4 4s 3d, leaving £7 13s Sd for other purposes, compared with £5 2s 9d in 1914 If deduction is made to counteract the fall in the value of money over the war period, it will be found that the direct burden on the taxpayer apart from war costs, has not relatively increased. “The speecli under review made particular reference to Customs r*> venue, and to the big increases under that heading since 1920. The increased revenue however, is almost solely due. to increased imports. Broadly speaking, Customs duties for revenue purposs are levied on luxuries only, and half the revenue foi 1921 was derived from the importation of iewellery and fancy goods, spirits and alcoholic liquors, tobacco motor vehicles and tires. Apart from luxuries, Customs duties are levied almost solely for the protection ot our own industries, and here it. might be added that the suggestions made by Sir Joseph Ward for adjusting the rates are more or less truisms m that lie has practically enumerated the guiding principles underlying the" present tariff. ... . Sir Joseph refers to the increase or >£8,000,000 in expenditure after war charges have been deducted. About £1,000,000 of this will be found urn dor the heading of special Acts, and is due to the' increase in pensions apart from war pensions amounting to about £600,000 and to increases in hospital subsidies and such like charges. This leaves £7,000,000 increase in the annual appropriations, but this in no way represents the relative increase in tlio burden of the taxpayers. Tho annual appropria tions include the working- expense? of railways and post and tlegraphs whose increased expenses are covered bv increased receipts, and impose nothing on th taxpayer as such, llio sum of £520,000 of the increase is purely nominal, being due the change in the accounting system. “Finally it is necessary to make allowances for the world-wide fall lr. the value of money. When these allowances have been made, it vill ic found that the comparative result obtained works out per head of mean population as follows: 1914-10, 5s 6d; 1924,25, £3 0s 9d. These figures afford further proof that there has been no administrative extravagance in the expenditure during the last decade.—P.A