PRIME MINISTER’S PLANS

Hawera Star, Volume LI, 4 May 1931, Page 9

PRIME MINISTER’S PLANS

IMPORTANT TASKS AHEAD.

RELIEF FOB THE FARMER.

Having secured relief from the strain of the emergency session, the New Zealand Prime Minister has been able to direct his attention to various important and urgent questions arising out of /legislation passed during the past two months. In the short recess- before Parliament meets again in midJune, Air. Forbes will make several important announcements, among which will be statements concerning; the rehabilitation of the Hawke’s Bay earthquake area, railways control, local body rating and costs, education expenditure, and the wheat- and flour duties, states tlie “Dominion.”

One of the first decisions to be made will be that concerning the appointment of members to both the Hawke’s Bay Readjustment Court and the Rehabilitation Committee. The court will consist of a president, who- may be either a past or present member of the Supreme Court bench, and two associates. Itwas originally intended that the Chief Justice should act as president, but an amendment to the Bill provided that a retired judge should-be chosen. Although no hint lias been given concerning likely appointments, it is believed there is a possibility that Sir Walter Stringer, a former judge and at present chairman of the AVar Pesions Appeal Board, will he appointed as president of the new court.

The Government is contemplating the abolition of the Pensions, Appeal Board in its present form, and if previous intentions are adhered to Sir AValter Stringer would be free to accept the position, for it is proposed to delegate pensions apepal cases to magistrates in each centre. The Prime Alinister is anxious! that .both the Adjustment Court and the Rehabilitation Committee of five members should start work as soon as possible. To this end he will confer with the Chief Justice early this week and an announcement can be expected shortly. RURAL RATES BURDEN.

One of tlie most important inquiries in recent years is to be made by a commission to be set up soon to investigate the incident of local-body taxation and the possibility of effecting economies in the expenditure of all local authorities, including hospital and charitable aid boards. The Government is now considering the membership of this commission. Its inquiries will carry the Prime Alinister’s economy campaign to the door of the farming community. Ratos form one of th most onerous items in the oveliead costs of farming Rural local authorities collect about £2,240,009 a year by this means, while power boards collect about- £70,000 a year, mostly in rural rates. In addition the total collected by a number of smaller harbour boards is about £IOO,OOO. Land! tax assessments on rural lands amount to about- £650,000 a year, but as the majority of farmers are exempted from this form a taxation it is clear rates ar eteh real burden of the small farmer.

T-lie object of the prOp-osed commission will be to bring about- a reduction in tihe number of looaJl authorities. Apart- from power boards and harbour hoards, thei’e are no fewer than 229 rural local authorities whose annual administration costs £330,000. This represents 11 per oentY of the total revenue from all sources of nearly 15 per cent, of the receipts from rates. It is an aspect that must ,be considered if overhead expenses are to. be adjusted to changed values.

EDUCATION COSTS

The growing burden of the ciost of education to the country will form the basis of an inquiry by a special committee whose personnel will be announced shortly. It will not go- into the questions of educational policy except insofar as that affects expenditure, so that there should' be no danger that the reco-mmenations of the Recess Committee on Education will he over-ridden.

At the present time expenditure on education including debt charges on the loan expenditure on buildings, is costing the country about £4,500,000 a year. According to- the Prime Minister’s own statement, this is too heavy a burden on taxation under present economic conditions.

By a cursory inquiry the Economy Committee has been able to point to methods by which the Education Vote can he reduced by £230,000. The proposed committee will be non-Parliamen-ta-ry in constitution, and ’it should be able still, further to reduce the vote. WHEAT AND FLOUR. DUTIES. A statement of great interest to be made by the Prime Minister in the near future will bo that relating to wheat and flour duties. It is believed that a re-adjustment will be made to permit lhe price of the 41 b loaf to be reduced by from Id to ltd. Should the duties be altered, the revised scale will not operate until early next year. There still remains the question of highways finance, but this will be investigated by a Select Committee of the House next session. During the 1930 session portion of the reading costs payable out of general taxation was transferred to the Highways Account and the. petrol tax was increased toy 2-dl a gallon to cover the cost of additional items in order that the amount made available for highways expenditure should not be diminished. The amending legislation was made operative until August 31 next only, and an undertakng was given that the whole question of highways finance would be investigated before that date by a Parliamentary Committee.