TAX ADJUSTMENTS FORESHADOWED BY SIR JOSEPH WARD

Manawatu Times, Volume LIV, Issue 6901, 6 May 1929, Page 6

TAX ADJUSTMENTS FORESHADOWED BY SIR JOSEPH WARD

Economies Essential

SHORT RAILWAY LINES BURDEN ON COUNTRY

CANNOT COMPETE WITH MOTORS.

Per Press Association.

HAWERA, Last Night.

An enthusiastic crowd of about 1000, which packed to overflowing the Winter Show hall at Hawera, accorded a reusing reception to Sir Joseph Ward at a civic welcome on Saturday evening. Speakers were tho Mayor, Mr. B. A. Paccv, Messrs H. G. Dickie, M.P., J. B. Murdoch, chairman of the Hawera County Council, W. Morrison, chairman of the Waitotara County council, and It. Masters.

Following his reply to the welcome speeches, Sir Joseph Ward touched on political questions, paying particular attention to the budget and railways.

Ho referred to the recent announcement that the financial statement for the year just ended would bo about £579,000 short of tho amount required to balance the ledger. “That,” ho said, “is not sufficiently large to cause any serious alarm regarding property or business but it is big enough to indicate that conditions giving rise to it cannot be allowed to continue. We must square the yards and I hope to bo ablo to plaeo before Parliament in the coming session proposals which will bring about the remedy.” There would have to be an adjustment of taxation, it being essential to secure more revenue than had formerly accrued from certain quarters. No country could claim it was in a satisfactory condition when the -financial balance was on the wrong side and an adjustment of tho Dominion finances was the mission on which ho was at present engaged. Customs taxation was between £300.000 and £400,000 and income tax between £60,000 and £7o,* 000 short.

As a primary producing country, New Zealand was bound to look principally to the land for its prosperity and in a small-holding settlement scheme, together with the careful regulation of immigration, lay the solution of the unemployment problem.. The government had statod it would go ahead with tho work on long railways but it would not consent to expenditure on short lengths which, ha contended, could not hope to compete with motor services. On such lines as Taranaki to Auckland, Napier to Gisbnnrro. and South Island main trunk and Westport to Nelson, the government was prepared to incur such expenditure as would pay interest on expenditure. Side by side with land settlement, the government wanted to complete longdistance railways but would stop for ever short, fragmentary lines, which wero a burden on the country. Last year tho losses on smaller lines entailed £770,000. This was a direct c’u&rgo against the consolidated fund and had "been largely responsible for the budget deficit. But for that charge, there -would not have been a deficit. During tho next session, he proposed to ask Parliament to adjust tho system of railway accounts. Tho stoppage of the Palmerston North deviation was one direction) in which the government was endeavouring to check unnecessary expenditure but the amount involved was trivial in comparison with the loss on small lines. The Palmerston North deviation had been stopped because tho government believed it was not wanted. Tho government would also stop any otlior work concerning which a similar conviction was held.. Also, he and his colleagues believed the Rotorua-Taupo line should never have been started. The policy of the government was that it would not undertake any railway work which would not return at least interest on tho capital outlay. '• “Millions and millions and millions are being borrowed every year,” said Sir Joseph Ward, again referring to finance. “Millions and millions and millions are being expended every year and some of it ‘is being thrown away. What we have got to do now is to ask the members of Parliament to snare with us the responsibility of focussing and limiting the expenditure of those millions that are not required, at the same time pushing the country on at a reasonable speed, yet keeping the safety valve on.” ... , In referring to the 84 nules of lino required to link the South Island mam trunk railway to Picton, the Prime Minister said it would allow a saving of six and a half hours on through passages from the extremities of both islands, as more direct connection would lie afforded in crossing Cook Strait. He believed the completion of the line to Pieton, with its facilities for through traffic, would prove in the besinterests of the country, just as through services between the principal centre* in the North Island had been.