REASON FOR INCREASED PRIMAGE DUTY.

Horowhenua Chronicle, 4 December 1929, Page 2

REASON FOR INCREASED PRIMAGE DUTY.

CANNOT TAKE "RISK OF NOT BALANCING BUDGET

INTERIM EXCESS £70,820. WELLINGTON, Last Night. The Prime Minister (Sir Joseph Ward) to-day referred to certain comments relative to customs revenue for the past eight months of the financial year, with- particular bearing on incieased primage duty. "If will be remembered," said Sir Joseph, "that in estimating the Budget for the current year, I pointed out that I had to face tho necessity of obtaining a revenue return of £1,570,000 over and above the revenue receipts of the previous year and an analysis of this amount was given by me in the House last session, showing that £577,000 was required, in the iirsl place owing to the deficit in tho ordinary revenue account of the Consolidated Fund of £733,000, almost wholly for increased interest and othor rigid items and £260,000 allowed for supplementary estimates. "I also pointod out that these additional receipts could not be expected in automatic increases tlrom present tuxos and that, in order to ensure a balanced budget, E had to consider extra taxation and take no risks of foiling to secure the" estimates of revenue compiled by experts and presented to me.

" Customs revenue last year (almost wholly in the last quarter) failed to realise its estimate by £300,000, the main factor in bringing about the deficit. I notice it has been stated that the Customs may be expected to yield the extra £4:10,000 required by the budget without the assistance of the extra £300.000 estimated from additional primage duty. "Complete figures to the end of November are not available but the Treasury returns for the seven months to the end of October certainly do not justify fiudi a statement. Apart from the duty on tyros and motor spirits, which goes to. the Highways Board and does not assist the general budget, Customs revenue for the seven months o mounted to £4,970,820. Seven-twelfths of tho estimate for tho yoar would amount to £4,900,000, so that the excess receipts, including tho additional primage, amount to only £70,820. "The position is that it is impossible to say with any degree of certainty what tho Customs revenuo is going to be during any month or period of months and at this juncture it is very important that there should be no risk of failure to realise the year's estimate at March 31 next."