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Gisborne Times, Volume LXXII, Issue 11495, 24 November 1931, Page 5

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NATIONAL BANKRUPTCY. WHAT LABORS FINANCE POLICY MEANS. FINANCE MINISTER’S SCATHING CRITICISM. (Press Association ■ v. - DUNEDIN. Nov. 23, The Minister of Finance, the Hon. W. Downie Stewart, Coalition candidate for Dunedin West, opened his campaign to-night before a large audience. The Alinistor devoted considerable time to Labor’s policy as outlined by Mr. Hoffimd. He said the contrast between the two policies, Labor’s and Coalition’s, was clear and- simple. Coalition’s view was that the national income having fallen heavily they must take , steps to reduce expenditure. They had to resort to heavy extra taxation ,direct and indirect,. to fill the gap caused by the rapid fall in revenue. The extra taxation imposed to help the Budget could not go beyond certain limits without destroying the sources that created the revenue.

Tho Labour Party, in •■its manifesto, said a halt must be called to further taxation., hilt he could not reconcile this with the further statement that the source from which tho taxation was drawn must bo extended; and the national income increased, nor did he . know how Labour could, reconcile it with its policy of further expenditure all round and the restoration of the “cuts.”

. The Labour Party gave “entirely misleading _ figures” to suggest that blip recent increases in the iojcome tax had hit the small man harder than the big man,” said the Minister. All the increases graduated in an ascending scale, and the; Minister quoted figures to prove his statement. It is also alleged by the Labor Party that assessable incomes bad increased by £16,000.000 in about 10 years, and ought to bo available to get more revenue from it. The Alinister repeated what he had already told them, that they had confused tlio assessable and tho taxable incomes owing to the change in the method of stating the figures. Dealing with the graduated land tax tho Minister _ refuted the allegation that a gift is being made, to wealthy landowners. The reduction in the land tax meant an increase in tho income tax.

Regarding Labor’s State Banlc policy, Mr. Stewart said that if the electors knew what this meant they would reject, the Labor policy on this ground alone. It was owing to danger of politicians gaining control of currency that the Australian Federal Senate postponed a Bill to establish a Reserve Bank in the Commonwealth last year .

Air. Holland had said that he would borrow £26.000,000 in. New Zealand within three or four years. The Minister’s answer was that ..neither Air. Holland nor anybody else could borrow that sum in New Zealand in. the period stated, whether the- loans were made voluntary or compulsory. Labour s finance proposals could have °ne result only—national insolvency. The speaker was accorded a vote of thanks and confidence.