Keeping Down The Price Of Goal

Northern Advocate, 12 October 1949, Page 5

Keeping Down The Price Of Goal

WELLINGTON, Wed., (P.A.).— The price of coal has been kept down by taxing other goods, said the Leader of the Opposition (Mr Holland) in the House last night, in discussing the subsidies paid.to the coalmining industry.

The Minister of Mines (Mr McLagan) had said if the subsidy were cancelled the price of coal would rise at least £1 a ton.

The Government’s intention was to retain the subsidy. What was the National party’s intention? Mr Holland claimed that the subsidy to private companies was the result of an agreement by the Government to guarantee the profits of the companies, when the mines were taken over to appease the miners. The Minister had claimed that the subsidies were paid by those on higher incomes but what was absurd in face of the fact that'£43 million of indirect taxation, including £l3 million sales tax was paid hy the man in the street, each year, Mr McCombs, Minister of Education interpreted Mr Holland's remark as a declaration that the National Party would abolish the subsidy. Mr Holland said Mr McCombs could not put such words in his mouth. "I did not say we would increase the price of coal,” said Mr Holland, “That is what the Minister would like me to say, but I won’t say it,”

Construction was started on nearly 500.000 new homes in the United States during the first half of 1949.