The Hawera Star. SATURDAY, SEPTEMBER 3, 1932. WAGE TAX CUT.

Hawera Star, Volume LII, 3 September 1932, Page 4

The Hawera Star.

SATURDAY, SEPTEMBER 3, 1932. WAGE TAX CUT.

Delivered every evening toy 5 o'alook In Hawera, Manaia, Kaupokomii, Otakeho. Oeo. Pihama, Opunake, Normanby, Okaiawa, Eltham, Ngaere, llftngatoki, Kaponga, Awatuna, Te Kiri, Mahoe, Loivgarth, Manutahi, Kakaramea, Altoa, Hnrleyville, Patea, Whenuakura, Waverley, Mokoia, Whakamara, Ohangsi, Meremere. Fraser Boad, and Ararata.

The Prime Minister’s announcement, that the Government entertains hopes of being able to- make a cut in the wage tax this summer is one of the best pieces of news that has -emanated from Government circles for some time. A reduction of this tax would act as a tonic upon the whole community and. its effects would be seen in several directions. In the first place it would' react favourably on the household l budget; it would also increase the purchasing power of the people and it would 1 , moreover, have a good effect on the spirits of people who have been “carrying on” throughout the dura-j tion of the slump. In order to be able to effect such a reduction the Government will, of course, have to be r-e----licved of a proportion of the unemployment burden. Mr Forbes is hoping that the summer will see a reduction in unemployment figures; Ire apparently isj anticipating a sufficient increase in sea- j sonal work to absorb a substantial j number of men in private employ. It would be even better if Mr Forbes felt himself justified in predicting an allround improvement in trade conditions, but he is wise not to say anything

on that- score in the meantime. It would be similarly good policy for the public to refrain from jumping to conclusions; the summer season should certainly see more men absorbed in work of economic value to the country, and any such in'erease in. work should give the authorities an opportunity of weeding out abuses of the Unemployment Act. But. New Zealand lias still to learn what readjustments are required of it by the Ottawa agreement. There, is a distinct possibility that the operation of a'reciprocal tariff arrangement with Britain will be attended by some early difficulties until sufficient time has elapsed to enable the antici-pated-benefits to be felt by the public as a whole. The Prime Minister’s announcement can be, however, reasonably welcomed in the cautious spirit in which it is uttered. It does not predict the end of unemployment and all its attendant difficulties, but it does foreshadow some measure of relief for the taxpayer and a corresponding all-round improvement in trade. '