Estimated Revenue From New Duties

Manawatu Times, Volume 67, Issue 109, 11 May 1942, Page 4

Estimated Revenue From New Duties

MORE INSURANCE FOR CIVIL WAR RISKS Per Press Association. WELLINGTON, May 10. An interesting estimate of the additional revenue which the Government expected to result from the imposition of the additional duties on wines, spirits, beer, tobacco and cigarettes and from the extra sales tax was given by the Acting Minister of Customs (Hon. A. H. Nordmeyer) in moving the second reading of the Customs Acts Amendment Bill in the Hou?e on Saturday. The extra duty on wines and spirits was estimated in the full year to produce an extra £120,000, the estimated increase on the beer tax was £925,000 for the full year and the estimated sales tax thereon was estimated to produce £480,000.

It was estimated that the increased tobacco and cigarettes duty and from the sales tax would produce an additional £2,000,000, while an extra £3,700,000 was expected to result from the additional sales tax being imposed on miscellaneous items even allowing for the possible diminution in sales thereof to the extent of £3,000,000. The Bill was put through Committee stages, given its third reading and passed -without further discussion. Moving the second reading of the War Damage Amendment Bill the Prime Minister, who was in charge of the measure, said its purpose was to cover damage that may be done to deny the enemy the use of property. It was only fair that such & course should be taken. Mr. S. G. Holland asked if the measure would cover, for instance, loss incurred by a freezing company if its stock were damaged through the enemy destroying hydro-electric works perhaps some distance away.

The Minister of Agriculture, Hon. .T. G. Barclay) said inquiries were being made into the position at present and Mr. Fraser commented that that would be a loss that would have to be guarded against. Mr. F. W. Doidge asked if houses which had to be evacuated would be covered, Mr. Fraser replying that inquiries would also be made into that aspect of the case. Replying to another query by Mr. F. L. Frost as to the amount of premiums which had been collected to cover war damage, Mr. Fraser said the voluntary premium cover paid amounted to some £750,000. It was impossible to state what the amount paid under the compulsory war damage insurance amounted to.

The Bill was passed through Committee, was read a third time and passed without amendment. In a brief statement before the House again went into secret session, the Prime Minister announced that regulations to provide for compensation for death or injuries sustained through enemy action will be brought down by regulations pending the introduction on the resumption of Parliament next month of the War Injuries Bill. He said the regulations would remove from insurance companies the enormous responsibility which only a nation could carry without risk of catastrophe. The proposal was to cover all persons ‘ 1 gainfully employed. ’ ’ In other word 3 all kinds of workers whether they were actually engaged on a job or unemployed for the time being. Similar legislation was operating in. Britain and Australia. Mr. Holland: Is there any provision for those who are not employed in any way. Mr. Fraser said that social security was the only provision made for such people. _ . Mr. Holland asked if the Prime Minister would see that the liability of insurance companies for personal loss was also covered in the proposals and Mr. Fraser promised to look into the question. A discussion on manpower and on the estimates of the war expenditure took place but the public was excluded from the chamber. This lasted for the greater part of the afternoon and when the House resumed as open session shortly before 5.30 the Prime Minister moved the usual formal motion that the House should adjourn until 2.30 p.m. on Wednesday, June 24, with the proviso that the Speaker be empowered to call it together at an earlier date should the necessity arise. The House rose at 5.30 until June 24.