PARLIAMENT

Nelson Evening Mail, Volume LVI, 31 July 1924, Page 5

PARLIAMENT

TAXATION QUESTION NO REMISSIONS SHOULD BE MADE MR F. J. ROLLESTON’S VIEWS 'From our Parliamentary Correspondent) WELLINGTON, This Day. A contention that there should be no remissions of taxation this year was advanced by Mr F. J. Rolleston, Reform member for Timaru, in the course of his speech in the House yesterday. Mr Rolleston maintained that were the remissions made, ho feared that in the near future, tho Finance Minister might have to increase taxation in order to make up the revenue and that it would be bad for tho country. He would not object fo readjustment of taxation and said that Customs duties might he reduced. If the duties were reduced, however, it, would lie desirable to see that the gross revenue did not. decrease. “What you reduce in Customs, you should take in direct taxation,” said Mr Rolleston. Tn the Budget, the country had been warned and rightly too. against- an era of extravagance and lie gathered that the large amount of Customs duties assessed last year was partly due to extravagance. Instead of a. million pounds being taken off taxation this year, the country could very well do with another million being put on. That would represent less than the amount taken off last year and it was money Mint, could be economically and profitably spent. It. was said that high taxation drove capital out of the country. Well, if that was so, it did not say very much for the patriotism of those people who withdrew their capital, and if they did do so, he would like to know where they would got better terms than in New Zealand.’ In his view, the suggestion that taxation drove away capital was quite illusory and was one that need not be considered. Mr Rolleston said he agreed with the criticism made against the constitution of the Taxation Commission. Tt was not right to exclude from that commission, a political economist and representative of Labour. It. was a question whether the Taxation Commission was really necessary oi" call, cd for. He agreed that in some cases commissions were valuable. When it was a question of collecting evidence or sifting facts, a commission could do good work, but questions of taxation did not so much warrant the setting up of a commission. On such a subject there were conflicting theories and policies on which member of, Parliament should be able to judge, as well as anyone else. Regarding the findings of the Commission with respect to company taxation. Mr Rolleston said he thought it would be a mistake to wait until 1925 or 1926, before altering the incidence and removing injustices and anomalies. These should be removed without delay. If the Commissioner of Taxes were to call on every taxpayer to send in a return of his income from all sources, the returns could be in within a couple of months from now, and if Parliament were sitting, the matter could be discussed.

BORROWING AND POSTERITY

“Why should we worry about posterity, what has posterity done for us?” This is sometimes said to be the attitude of mind of those people who advocate the adoption of a policy of unlimited borrowing for works of a public nature.

An opponent of such a policy is. Mr F. J. Rolleston, and he gave his views on the point in the House yesterday. Mr Rolleston said that the country would have to consider seriously its position in regard to borrowing, if its credit was to be kept sound. He suggested that public works could be paid for out of revenue and that other works, if not urgent, could be held over. This would enable a saving to be made in l’espect to borrowing. There was quite enough’ to do in meeting the requirements of to-day, without having to meet the burden incurred by previous borrowing. If money was going to be borrowed continuously, and left to posterity to pay off, what would be the position of future generations, who would have to meet the debts which we accumulated for them and pay for debts, also which had accrued before our time.

QUESTION BY MR H. ATMORE

Mr Atmore is asking the Minister of Finance whether ho will, in making provision for increase in civil servants salaries, sec that, justice is also done to secondary school teachers, in the matter of restoring their salaries.