Death Duties and Capital

Manawatu Times, Volume LIV, Issue 6628, 15 August 1931, Page 5

Death Duties and Capital

HIGHWAYS BOARD’S REVENUE INCREASED

THE GOVERNMENT CHANGE OF 1928.

Per Press Association. WELLINGTON, Aug. 14. Tho House of Representatives met at 10.30 a.m. The Wanganui Church Acre Amendment (private) Bill was reported from the Committee of. Selection without amendment. Mr A. E. Jull, resuming the lludget debate, replied to the suggestion from a Labour member that an addition of £2,000,000 could be obtained from death duties. He cha.acteriscd such a line o' action as unsound policy, because the country would actually be using up its capital to carry on yearly allocations. Everyone who had been connected with business concerns ould 1 what difficult situations arose when it became necessary to provide huge sums for death duties. New Zealand did not possess such a reservoir of accumulated wealth as there was in Great Britain, andTt was 'ore not possible to dip into it with tlie same apparent lack of difficulty. He 'added that even in Britain the lick of difficulty was on’y apparent.

Mr Jull defended tlie actions of the Government in regard to highways finance. He said that, despite allegations by Reform members that the revenue of the Highways Board hat. been reduced as a result of contraventions -f the Act, the actual revenue of the Board had increased by £200,000 in one year. Mr Endean said that the Reform Party had guided the ship of State through glorious seas up to the year 1928, but in that year there had been a change of the Government, which had allied itself with the Labour Party. The Reform Party had warned the Government of the depression, but the warning had not been heeded in time. The payment of standard wages on relief works, and other extravagances, had heaped up taxation until the country was bled white. Had the Reform Party continued in office, the Budget would have been different from the one that the Prime Minister had introduced. He complained that New Zealand’s financial advisers had not taken sufficient notice of Australia; and ho quoted warnings made to the Government by members of the Reform Party. The Leader of the Opposition had suggested short sessions of Parliament, but the Government of the day had been so lacking in vision that it had not taken timely action. Had the Government heeded the advice, there would have been a saving to the country of a million and a-quartcr in economies. The Government had not grappled seriously with the cost of living. If the prices of the Dominion's products did not recover, costs would have to come down in conformity. A start would have to be made on the farms, not only in regard to the wages of shearers and shepherds, but in farming operations generally. Transport charges also would have to be reduced, and there was . necessity for the rationalising of industry. The House adjourned at - pan The debate was continued along Party lines during the afternoon and the House rose at 5.30 till 2.30 on Tuesday.