A VIOLENT DISLOCATION of PUBLIC FINANCES

Nelson Evening Mail, Volume LVI, 1 December 1922, Page 3

A VIOLENT DISLOCATION of PUBLIC FINANCES

' SHREWD MAIM U!Y OK RROP.A- , IHI.ITI KS I "Wo are told ’ rays the Oingo Daily Times in a cogent leader under date | Ociolier ,19th. i!)22 ..That at the pre- ! sent time I here is an expenditure of seven millions or si, per annum upon drink in Now Zealand, and that the revenue which accrues in consequence to the Slate .'eiii'Uiil.s in about two and a half millions. I The .suggestion is that if these seven million, instead of being spent on drink, were spent on -clothing and furniture ami hoots and shoes, upon theatres and IJov-rides and luxuries, the revenue obtained from the Oovernmenl would not i he smaller than it now Is. We cannot, i however, he at all certain about this. ! High duties are levied upon alcohol, it iis very unliked that the expenditure I ciion other goods ot the amount at ])’.’(?- t -"id socnl on drinic. would yield the State a revenue nearly equal to ihat derived hy ii fi'cm the liquor duties. There would, in Mils event, he a gap in the revenue that would have to he filled hy (he proceeds of taxation from some other s. a.irce.

| Moreover. ii is certain that the im- ' mediate effect nl' tin' enact incut of Proi would he a ratin'!’ a*it>lol)t■ dis- : If.fji ti<m of tin' puMic finances, ft is bc- ; cause ibis is recognised by Mr Massey. 1 v.’bo is tbe Minister responsible for the ; public finances. that be hinted recently i ibal. if Prohibit top was carried it might Ibe necessary that Parliament should I meet b) the earlv mmi'lis oi the year. The (lo\eminent must be as secure as i possible in its finance, .and it cannot safelv take the risk of trusting to the hiss of revenue upon liipior being si might wa v made up to it from some I ether source. It must so regulate its finance as to ensure that it shall receive i the revenue it requires. 1 b mav he set-mised. therefore, that I the immediate oiled of the enactnientot i I’i nbihidon would lie that the duties i would he increased upon articles such ! ns lea and sugar, which go into genoral consumption and are therefore the most, dependable sourei s ot revenue, to make- good a. probable deficiency in revenue. In other words special taxalidii would have to he looked for. Mr Massev in his election manifesto, ‘■aid tha, 1 lie hoped 1c reduce the burden of taxation.' The implied doubt as to the feasibility of such a course was f) nite obviously expressed witii a view' t , the possibility of a Prohibition vote. Mr Massev knows that in such an event it would he impossible to reduce t taxation- or, indeed, to avoid incrensI jog it. Every responsible adult must , riulise the fully of inenasing the cost of living hv throwing away liquor revenue. Two and a half millions sterling are paid annually as a voluntary contribution to natural revenue by consumers of a\ohol. Xo per°on who objects to paying the tax need buy (he liquor .Put it this large amount is lost to the State. I through' Prohibition, it must be made j grind hv taxes on necessities, which I everyone must buy. Vote Continuance, and keep down taxation and the high cost of living,*