The Gisborne Times TUESDAY, FEBRUARY 12, 1935. WHERE THE GOVERMENT LAGS BEHIND.

Gisborne Times, Volume LXXXII, Issue 12476, 12 February 1935, Page 4

The Gisborne Times TUESDAY, FEBRUARY 12, 1935. WHERE THE GOVERMENT LAGS BEHIND.

There is, clearly, solid ground, for the belief held by the Minister, for. Finance that it will be found when the State year ends on March 31st that the national receipts will, have exceeded the .national expenditure. With pride, Air. Coates points to the fact that, under, nearly every heading, revenue, so far, has exceeded expectations. It may ho agreed with him also that .the results indicate that economic conditions arc on the. mend. That, 1 however, is about as far as most peo-i pie will bo prepared to go with him. on the matter. For one thing, they must realise that much additional, taxation, especially the wage tax, is going into circulation which, otherwise, might have been invested in some form of savings. What will ho widely disappointing is that Mr Coates is content merely to express gratification that the people have stood up so uncomplainingly to such a gruelling period of burdensome taxation. It is, of course, known that the government is riot anxious that, the question, of taxation reductions shall be raised during the pending autumn session. Maybe, however, members who feel keenly on the subject will, for all that, contrive to revive the subject. What the Government has in mind is, it would seem, to make some concessions during the main session which will be held prior to the General Elections. If the Government had more vision, however, it would, assuredly, appreciate the fact that' much more is expected of it besides the balancing of the National Budget. Not much skill is really required to accomplish that very desirable object, for all that a governriient is called upon to do, in such circumstances, is to throw out its taxation net sufficiently far and wide to gather all the moneys that it needs. Much more difficult is it to raise additional taxation without inflicting injustice and without retarding industrial rehabilitation. Now that the balancing of the national accounts has been accomplished at heavy cost to the community at large, the Government must be called upon to devise means to achieve a like result on a much lower basis of taxation. As matters at present stand, excessive ordinary taxation, coupled with the sales tax and the wage tax, is not permitting the wheels of industry and commerce to bo speeded at a sufficiently rapid rate. What is wanted more than anything else—not only in New Zealand hut in every other country—is inspiring leadership on the part of the governing authorities. But what does one find ? Most governments—and the Government of this Dominion is no exception —have all along been attempting to reach financial stability by journeying on the backs of the taxpayers. It is, however, not enough that a government should endeavour to re-create confidence by pointing to the fact that economic conditions are now on the mend. .Much preferable it would be if it were to afford proof, l).y deeds, that it really does believe that such is the case. If Mr. Forbes and Mr. Coates have no doubts at all on the point, the Government should formulate a programme of new important works to be financed by a cheap ‘Prosperity Loan.’ Without a doubt the fighting of the depression should not be left to the people as individuals to undertake. 'Strangely enough, the Government of this Dominion does not appear to agree that confidence alone begets confidence.