LABOUR OPINION.

Lyttelton Times, Volume CXVII, Issue 17199, 20 June 1916, Page 4

LABOUR OPINION.

WAR TAX TOO SMALL. A lcprcsentativo of tho "Lytfelton Times'' called at the Trades Ball yesterday and interviewed Mr H. Hunter and Mr E. J. Howard as to Labour's views on the Financial Statement. Mr Hunter said that in giving expression to his opinion of the Budget no was not speaking for any organisation; it was purely Jus own view, 'mere was- no doubt that there were many feature? which merited commendation, particularly the proposal to tax war profits to the extent of 45 per cent. ''That certainly is going nearly half way," continued Mr Hunter, "but I hold that befcro any other taxation is levied, tho Government should take 100 per cent of war (profits. It is not :v*ht that any station of tho community should benrii 1 financially out of tho country's mfefortunes. Tho proposed 5 par cent fiat •rate additional tax on incomes i:s most unfair. What is required is a graduated tax, increasingly heavy on incomes over £1000; in fact, the war expenditure should be met mainly by taxation of income.! instead of placing a burden upon the bucks of tho wageearners of the future by borrowing such huge sums of money to-day. A section of the peoplo is wringing huge sums out of the community in war profits which they may invest in Government bonds, and they and their descendants will 'live happy ever after' upon the proceeds of such commercial immorality. The Government hesitates to compel wealth to bear its share in war time, but declares ii - Will ' stop at nothing ' when men's lives are at stake. "the borrowing of £8,500.000 from the Imperial authorities and then assisting them by investing £3,32C.0C0 in Treasury bills appear? to be « roundabout and expensive policy. One would imagine that the simpler and more economic plan would have been to borrow that much less and pave the brokerage charges, etc. "Tho intention to reduce expenditure on public works will be generally condemned, especially in relation to trunk railways and arterial main reads. These works should be pushed on iind tho money to pay for them laisacl tc s large extent from lands in t.ie cirririo's benefited, by taxing unimproved land values. Another regrettable statement is in reference to the practice of ' strict economy' in regard to education. This is the last department which should; have its income limited. ',

" The operations of the Public Trust, Life Insurance and State Fire Insurance offices are evidently, of immense benefit to the community, showing the benefit of Stnto enterprise. The Government might very well consider a reduction in lire insurance premiums. The proposal to extend the assistance given to friendly societies is a good one from their point of view, Rut 7 fni! to see why their members should receive a maternity bonus of £4 unless it is also given to every mother whether connected with a friendly society or not.

"The Mmistcr is to bo compliment* erl upon hi;-- decision to limit the rote of interest chargeable by financial institution.-.

"The outstanding feature in connection with the Statement is tho confession of the Government of its impotence in regard to the cost of living. Or what avail is it to take 45 per cent of war profits from the exploiter if he is to he allowed to continue his profitmongering unchecked? Is this a now governmental method of indirect taxation?

" I am pleased to learn," concluded Mr Hunter, "that the Government proposes to deal with the rent problem, •out keeping in mind the legislation already on the Statute Book, dealing with tho prices of commodities, which has been a dead letter, and the Cost of Invinpc Commission, which was a farce, T am somewhat scepticaLof this proposal. Abraham Lincoln lung been quoted very much lately in reference to tho Conscription Act, - and a careful perusal of the Budget impels me to remark that the Government will not bo able to 'fool all of the people all of the time.'"

" UNSTATESMANLIKE BUDGET." Mr E. J. Howard, when interviewed, said that lie regarded tho Budget as very unsfcatesmanlike, beiug merely a repetition of. the Budget'* experienced during the last few years. Tho Government's motto seemed to be. " Never do to-day what can be put off till tomorrow." There were three points to which mai7i exception could bo taken. First, the. proposed income tux of 5 per cent, which should have- been made graduated or progressive. Then the special war expenditure should to a greater extent be paid by the present generation, rather than burden posterity. Taxation rather than loan was to ba preferred. Thirdly, there were the internal loans. He was against borrowing locally for war expenditure. The money in the Dominion should bo borrowed for public works and industries, and used to encourage- the Dominion's development. As iar as possible all war expenditure should be made with foreign capital. Tho issue of war bonds seemed to bo a movement to make the war popular. The stoppage of tho development works in the Dominion would mean that the Dominion would be with a very grave problem immediately tho war was over. Roferring'to tho grant to Civil servants, Mr Howard thought tho limit of salary vraa rather high. Tho Civil servant earning about £3 weekly deserved „ i b k.,+ U, wnß'deba,taihlt> whether

Labour would seldom oppose increase in wages.