TAURANGA BY-ELECTION.

Hawke's Bay Tribune, Volume XIII, Issue 78, 16 March 1923, Page 3

TAURANGA BY-ELECTION.

SIR JOSEPH WARD’S OPENING. PARTY ARRANGEM EM' ADVOCATED. REMEDIES FOR EXCESSIVE TAXATION. Tauranga, March 15. The biggest political gathering in the history of Tauranga greeted Sir Joseph Ward in the 'town Dali tonight. By half past seven the hall was crowded and when Sir Joseph rose to speak at eight o’clock sharp the capacious hall was packed in every quarter, fully 1000 people attending. Air. B. Dive, the Mayor, presided and m introducing Sir Joseph referred to him as the best Postmaster-General and Minister of Railways New Zealand ever had. The absence of Sir Joseph from the political arena had been a detriment to New Zealand. Tauranga had earned the reputation of having sent a great man to represent them and the opportunity now presented itself of maintaining that reputation.

Sir Joseph, on rising, was greeted with cheers. He first wished to say how deeply he regretted the cause that brought him to lauranga and expressed sincere sympathy with those associated with the late Sir William Berries.l It had been said that he (Sir Joseph) was not a friend of the farmers, but as a matter of fact his whole associations for forty years had been with farmers and on all sides were movements he was responsible for, which had been beneficial to this district and to the whole Dominion. He had turned the first sod of the WaihiTauranga railway and hoped he would be alive when it was finished. He also claimed credit for initiating the work of the drainage of the Rangataiki and Hauraki swamps and other works oi national' importance. It had been whispered that he was a stranger. We were all New Zealanders and were all part of the Empire—one in determination to make this country greater. Sir Joseph dealt with the “Auckland Herald' 1 comment upon his statement at Te Aroha and its suggestion that he should clear up the ambiguity of his reasons for His candidature and its possible effect in-compelling a dissolution. The criticism almost implied that he had no business to be a candidate. He was a candidate and with the help of the electors would be a representative. The “Herald” had furtner stated that he did not see any impropriety in retaining office with a narrow majority, the Speaker’s casting vote. That was incorrect, as he diu not retain office, but informed the House that he would relinquish it and did so. With regard to his remarks as to dismissing any possibility of a dissolution, a communication he had received from members of the ocl Liberal Party in Christchurch clearly indicated what was in their minds ami what they understood was in his when he made the statement. His view was that many important .public affairs were requiring the gravest consideration on the part of representatives m Parliament, as well as the people ol the country, and to have another appeal to the country at the present moment, if it could lie prevented by a commonsense arrangement between the members of the two great parties, would, in his judgment, be next dooi to criminal, and it was his bounden duty in the wplfare of the country first to try. to prevent a dissolution by the exercise of common sense. That was that he would try, with others, to bring about for the good of the country as a whole. At the present moment farmers, traders, workers, and the business community of the country were being kept from progress and development on account of inordinate and excessive taxation now levied. The tax we had imposed on us at the moment was a tax imposed to help the Motherland and the Empire from coming under The domination of Germany, and that war taxation still existed, with the exception of two slight concessions, which were outweighed by the increases since made, and was disastrously interfering with the progress of the country. New Zealand was the highest taxed country in the British Empire except Great ‘Britain, and she had provided loans to the extent of £1,000,000,000 to help the Allies. Our taxation per head was £l9 0/9. and the highest in an Australian State — Queensland ■ —- £4 14/3; Canada £5. The company tax

in New Zealand was of such a character that farmers’ co-operative associations and similar institutions had to earn 20 per cent, to pay a dividend of 8 per cent. That meant a charge on the farmer and people trading with them. While in New Zealand these companies were paying 7/2 in income tax, that tax in Victoria was only 2/8. including the Commonwealth tax. The war had been given as the reason for heavy borrowing. Before the war the total indebtedness of New Zealand was £99,700,000, and at the end of the last financial year had grown to £219,054,000. In 1918, at the end of the war. the amount was £150,840,000, so that it had been increased by £68,000,000 since the war, in addition to the utilisation of £17,000,000 surplus that he left when he relinquished the position of National Finance Minister. He wished to impress upon the people of the country, the vital neces-

sity of their representatives grappling seriously with the question. The last British‘Budget totalled £900,000,000, and the previous Budget had been £1,300,000,000, but oyer £300,000,000 war debt had been paid off during the year. New Zealand had paicj nothing off her war debt, but on the other hand had increased her indebtedness by £68.000,000 The New Zealand Budget in 1922 amounted to £29,353,354, so that if England, on the basis of population, was to make her Budget

equal to that of New Zealand, she would require to increase her Budget by £141,000,000. If the country were

to go on in that way, where would it get to? What was the use of making a reduction of threepence per pound on tea and concessions of that kind? Something far greater was necessary if they were going to put the country in the position it ought to be in. The debt of New Zealand to-day was £175 9, 10 per head —heavier than the debt of any of the Australian States. I Sir Joseph then quoted comparative figures of income tax payable in New Zealand, compared with Victoria, plus the Commonwealth. Three hundred and ninety-five taxpayers in New Zealand with incomes of £lO,OOO per annum or over were each paying £4lOO as against £766 13/4 in Victoria. The companies paying this heavy taxation were the greatest employers of labour in this country ,and some of these firms were considering changing their headquarters to Victoria, where the tax was only 2/8 in the pound against--7,2 in New Zealand, and these firms were circulating millions a year in New Zealand.

“I am as satisfied as that 1 live,” said Sir Joseph, “that whether the government or Parliament like it or not, we have to reduce our income tax to the level of that paid in \ ictui'ia, including the Commonwealth tax, or 2/6 in the pound at the most. He was not in favour of removing the graduated land tax, which had been imposed for the purpose of preventing the growth of large estates. In referring to schemes originated by him, Sir Joseph pointed out that £34,000,000 had been advanced under the advances to settlers scheme. The result of the continuance of the moratorium ho described as disastrous, the result being that money could not be secured under 8 per cent., and many farmers were being strangled to death, and soldiers were on the land at double its value.

Tlie scheme Sir Joseph suggested for the construction of railways, hydroelectrical schemes and similar publicworks was to complete them in live years by issuing New Zealand Government stock at o per cent, negotiable in this country and elsewhere. The advantage of this was that they did not save to borrow large sums on which they were losing interest while waiting die payable, stage. Necessity woulu compel the country to change the present method. He could undertake as a private individual to complete the whole of the railways now under construction in New Zealand under his proposed scheme in live years provided he could get the labour. Coincident with railway construction a vigorous land settlement sdheme was necessary and suitable immigration. Money for farmers’ needs could be obtained by the Government confining its borrowin goperations to that purpose and he estimated that the farmers required not less than £25,000,01)0. This should be obtainable at not more than 5 per cent., including redemption. ]f the scheme he advocated were adopted he would stake all he possessed that in three years New Zealand would be out of trouble with large surpluses in the Treasury. . As regards a State bank he had changed his views. He had advocated | it for many years, but in view of the difficulties ahead of us in this country if we made any departure in the direction of setting up an independent state bank at present it would bring a tremendous amount of trouble on the people. He thought the Bank of New Zealand should be extended to take the place of a State bank. Many of the 150,000 to 200,000 traders carrying on business with that bank could not have carried on but for the bank standing to them, and if the State was to go right out for a State institution alongside the existing one a great many, people would find themselves in difficulties, and he for one was not out to create chaos at the present time He believed in a State bank, but thought it should come by development of the Bank of New Zealand. , In conclusion. Sir Joseph said he would have purchased land,for soldiers under the Government bond scheme he had outlined for public works which would have been much more effective. The things he advocated could lie done an if elected he would endeavour to induce Parliament to adopt such a policy. Sir Joseph was cheered at the conclusion of his speech. A few questions were answered and a unanimous vote of thanks and confidence was carried with acclamation.