FINANCIAL DEBATE

Nelson Evening Mail, Volume LXIV, 6 August 1931, Page 7

FINANCIAL DEBATE

CROWDED GALLERIES attitude of reform TO TAXATION PROPOSALS (From “The Mail’s” Parliamentary Reporter) WELLINGTON, stii August. The opening speeches in tlio Financial Debate were heard in tlio House tonight. Crowded galleries made evident the public interest taken in the attitude to be adopted by the Opposition to tho new taxation proposals. POLICY OF HELP In opening tho debate tho Loader of tho Opposition (tho Right lion. J. G. Contes) reminded tho House that last January, Reform had. stated it was essential that tho country’s position should be grasped and a serious condition would arise if steps were not taken in face of tho financial outlook. Later ho had informed tho Government that it would be Reform’s policy to help rather than hinder in tho work of reconstruction. The partv had endeavoured to adhere to that declaration and it would maintain that attitude on tho Budget proposals now before the House. They would reserve tho right to make suggestions and explore all avenues with a i view to effecting economies, but they would not move an adverse motion against the Budget. BALANCING THE BUDGET

When the taxing bills came down, tho Opposition would suggest economics in order to prevent the harshness of the taxation measures upon certain individuals. Wherever possible they wished to prevent costs creeping up but some of the proposals must have that result. He agreod with the principle of balancing tho Budget. The importance of balancing the Budget this year was greater probably than on most occlusions. Even after tiie Budget had been balanced, our difficulties would not be passed. Primary industries must be established on a firm footing. Until produce prices increased wo must reduce our costs. Ho anticipated that next year there would be still grealor difficulty in balancing accounts and to that end they should seek still further opportunities to economise. FAMILY MAN HARD HIT Turning to tho Budget Mr Coates said tho reduction in tho income tax exemption would affect the lower paid man extraordinarily. The family man was hit much sooner than previously and ho was affected more when one considered he also had to meet higher charges for unemployment and additional costs in other directions; moreover his mortgage and rent charges were fixed. If it wero possible to reduce income tax that would probably be the greatest fnctor in bringing about a revival of confidence in tho country, but they knew that that was not possible under present conditions. He believed readjustments could bo made in such a way as to mako it possible .to reduce tho incidence of taxation. There would be time enough to consider weaknesses in tho Budget in tho interval before the taxing bills came before the House. Everyone was affected by the added imposts on tea and sugar, but they must face tho position. The worst feature of the Customs alterations was the primage duty which would add to production costs. Mr.H. E. Holland (Leader of .the Labour Party): ‘‘Does that mean Reform will rosist the primngo duty? Mr Coates: “I,am asking the Government to reconsider it.” Mr Coates wanted to know whether departmental economies which had been inado were real economies and the reason for increased borrowing and expenditure. Tho Rt. Hon. G. W. Forbes: "Unemployment.” Mr Coates: “If it was duo to anything else the Government would deserve castigation.”

Proceeding he said the petrol tax should be used by the Highways Board He believed motorists would agree. As Mr Coates was concluding ho touched on the National Government proposal and said Labour had never indicated they were willing to join in such a move. “VERY FAIR CRITICISM’’ The Hon. .E. A. Ransom expressed appreciation of tho manner in which the Rt. Hon. J. G. Coates (Loader of the Opposition) had approached the sub«ct. His criticisms had been very fair. r Ransom said that as far as possible, the Government had endeavoured to make its economies so as to inflict a minimum of hardship. Unfortunately all. economies inflicted individual hardship as most of them involved dismissal of men. The Leader of the Opposition had implied that the Reserves which were now being drawn upon were built up by the Reform party, but most of them had been created when the late Sir Joseph Ward was a member of the National Government. All would agreo it was most fortunate that those reserves had been set aside to help to meet a time like the present. Unquestionably tho primary producer should be protected. Anyone reading the Financial Statement would see that tho Government was fully alive to this fact. Primary producers were being called upon to bear a few items of general taxation, but they were not being levied with any special taxation and were receiving the same measure of protection as in the past. The reductions of expenditure mentioned in the Budget were actual savings. It had been suggested that further savings could be made in administrative expenses and lie did not deny that might be the case, but they could not be made without further personal hardship and tho House would have to decide whether further hardship was justified. EDUCATION VOTE Mr Ransom said that it had been suggested that £1,000,000 might bo cut off the Education Vote, but the present Government valued the system so highly and _ realised tho seriousness of any economies that it would not make any reduction in the vote until a cbmmittee of experts had made an investigation. Tho Government did not want to sacrifice the present system. It had been stated, continued tho Minister, that tho incidence of income tax was falling heavily on the man with a moderate income, but most of the criticisms did not take into account the exemptions for children and life insurance. They did not take into consideration any insurame premiums. Income tax payable in Mew Zealand, notwithstanding the im reuses, was far belo.v that of other (ountrii-s. As far as the Customs Resolution;! were concerned, they had been brought down with the Budge; in ordci to give on indi align uii wide lines ot i-c Govern incut's proposals to increase taxation and to allow time fm h none.-, peoi !c and. others to consider the pioposals he i'qrc Icri.-dalimi was brought down. The fh.-Mfe v! - ad oiM iici! .■avion of V, Tolland A NT)I'R .'*• SONS" I G'"G,\ "'! TRVT is M-e.iallc * Ron. .. iie.'l'dccbe ohh '