EXCESSIVE TAXATION.

Hawke's Bay Tribune, Volume XII, Issue 79, 13 March 1922, Page 5

EXCESSIVE TAXATION.

MUST BE REDUCED.

STATEMENT BY PREMIER. Tauranga, March 10. Speaking at Te Puke last night, in response to the toast of his health, the Prime Minister reverted to the present financial position and the future outlook. The depression now existing, Mr. Massey said, would not in his opinion last very much longer. Three things had to be done—reduce the cost of production, the cost of living, and the cost of government. Then, if possible, taxation must be reduced. This was adjusting itseif. Juiome tax would be £2,500,0(10 less tlifs year than last, and would be reduced a further £2,000,0t)0 next year. The reason was obvious. The income was not there to be taxed. That made the position difficult, but it could be overcome. He was proud of the way in which the people had taken their coats off in the jast eight or ten months. Mr. Massey said he would not predict what the accounts would be at March 31, but there would not be much margin either way. The Government was trying to save £5,000,000 a year, it was a difficult task, but they were not nearly through , tlie economy proposals. Then he had asked Pariiament to give him another £2,00(1,000 in revenue, and it was being obtained. Every glass of whisky drunk, every pipe oi tobacco smukea, every sovereign put in the totaiisater helped. He aid not wish to see these bad habits increased, but the Government neeued the money. If these things could be achieved iC would rehabilitate finances, and that would be the first step back io prosperity. The prospects lor borrowing were good. lie might have to borrow a little in the future. There would probably be unemployment next winter, and he was able to tell his colleagues a lew days ago that he would be able to hand £IUu,OOU over to meet the position, but it must be use! in reproductive work, and not made a burden on the taxpayers. There was no lack or confidence in the future. All that was necessary was to hold on and to have the assistance oi increased production. NO INCREASE IN TELEPHONE CHARGES. . Wellington, March 13. Replying to a question Mr. Massey said: “No proposals providing for any increase in telephone charges have been submitted to Cabinet, and, moreover, 1 have reason for believing iliat no proposals have ever come before the Postmaster-General.”