MR. NASH WORKING ON BUDGET

Northern Advocate, 13 July 1936, Page 6

MR. NASH WORKING ON BUDGET

GUARANTEED PRICE WILL BE OUT SOON t Special to “Northern Advocate.’l WELLINGTON, This Day. The session, broken for the fiveweeks’ mid-winter recess, will resume on July 21, and it is' expected there will be a long series of Cabinet meetings this week to get impending legislation in trim. Cabinet will probably spend some time on its first Budget, which the Finance Minister, the Hon. W. Nash, is now preparing. Leaders of the Government are confident that it will be a cheerful document, and while its contents are being kept secret, there is a feeling that there will be some revision of taxation. It is not expected that there will be any general lightening of the taxation burden. There has been some talk of the reimposition of the graduated land tax, but probably the greatest interest will centre in the Government’s income tax proposals. A plank in the Labour Party’s election platform was the abolition of the sales tax as soon us possible, but, on present indications, it does not appear that the revenue from that tax can be sacrificed this year. Direct Taxation Policy. The Government’s declared policy is for the replacement of indirect taxation by direct taxation as far as is practicable, but, -- from statements made by the Prime Minister and others, it seems that a change in this direction can only be made in progressive stages. Whether the first steps in this policy of change will be taken in this year’s Budget remains to be seen.

Mr Nash is still the busiest man in Cabinet and his jobs, in addition to the Budget, are: — To shape details of the policy for inclusion in the Government’s Bills fcr the readjustment of mortgages on the basis of the guaranteed price to be paid for dairy products. The organisation of the new department of marketing. The direction of the Reserve Bank and State Advances Corporation policies. Guaranteed Price Soon. The guaranteed price, it is expected, will be revealed shortly, as well as the Government’s scheme for the local marketing of dairy products, while the financing of overseas marketing of dairy products through the Reserve Bank may shortly place the Government in a position to reveal details of its policy in connection with sterling transactions a;id other activities of the Reserve Bank.

Following announcement of the actual terms of the guaranteed price, which may be made before the House meets, the way will be opened for the early introduction of the Bill designed to make preparations, . through the Labour Department, for the organisation of farm labour, under the terms of an agreement reached some time ago between the Government and representatives of the farmers. Other important measures to be brought down are:— The Bill to restore wage and salary “cuts.” increasing pensions, and providing for the payment of invalidity pensions, all to operate from July 1. A measure dealing with the promotion and encouragement of industry.

Legislation to provide for the establishment of a new State highways system.