EXTRA PRIMAGE DUTY.

New Zealand Herald, Volume LXVI, Issue 20341, 23 August 1929, Page 13

EXTRA PRIMAGE DUTY.

" ONLY FOR SHORT TIME."

REPEAL WHEN FINANCES SOUND

PRIME MINISTER'S ASSURANCE

[BY TELEGRAPH. —SPECIAL REPORTER. ] WELLINGTON. Thursday.

A defence of llio Budget proposal lo increase (lie primage duty from 1 lo 2 per cent, was made by the Prime Minister, Sir Joseph Ward, speaking in the House to-day. Sir Joseph saiil lie did not. want to increase taxation at all if it could bo avoided. He looked on the increase in the primage duty as the most economical way of getting the revenue that was required.

The Prime Minister sairl ho had expected the Opposition would have taken a practical view of the proposals. The Labour member for Lyttclton, Mr. J. McCoinbs, had suggested that a surtax should bo imposed, but if that were done it would throw tho whole of the customs tariff open to reconsideration and Parliament would bo pestered by requests from one cud of tho country to the other. Tho increase in the primage duty was, after all, only temporary. Mr. McCombs: A surtax is just as easily imposed as a primage tax.

Tho Prime Minister: No. You would bring tho whole of the customs tariff on to the Hoor of the House. 1 took the easiest course. The increase is only for a short time

A Reform Member: Ate you suro of that ■>.

Tho Primo Minister: There is a proposal in the bill to terminate it by Gov-crnor-in-Council. Voices: What, more Ordcrs-in-Council ? The Prime Minister: No. 1 said Gov-ornor-iu-Council.

A Member: It is the same thing

Sir Joseph said there was a proposal in tho bill to repeal the increase in primago duty at the end of March if the financial circumstances of the country permitted. A Reform Member: Yes, if.

Tho Prime Minister added that, the proposal was a very fair one. Revenue was required at the moment. "1 put it to tho House that tho motion suggesting tho elimination of the proposal would mean the creation of something else a great deal worse," ho added. Mr. 1!. Srmple (Labour—Wellington East): Did you examine other ways ? "I examined every method T could think of," replied the Primo Minister. Mr. A. M. Samuel (Reform —Thames): What about American motor-cars'!

The Prime Minister: If the duty was raised any more you would stop them coming into the country.

A Member: 'I hat would be a good job. The Prime Minister: It might be a good job, but we would nut get any revenue. MOKE REVENUE SOUGHT.' OBJECT ' NOT DISCLOSED. RECENT LOAN STILL INTACT. [BY TELEGRAPH. SPECIAL REPORTER. J WELLINGTON, Thursday. The assertion that, the increase in customs revenue this year would go far to provide the extra money required by tlio Government was given passing attention by the Prime Minister, Sir Joseph Ward, when speaking in the House this afternoon.

The customs receipts for the first quarter were £1.917,000, said the Prime Minister. .Multiplied four times that amounted to £7,670,000, against the Budget's estimate of customs revenue for the year of £3.<100,000, so that it could not bo argued that the indications were that increased taxation was not necessary because of tho increased customs revenue. That showed the Ifouse he was justified in saying that the general revenue of tho country should bo backed by something more than the ordinary revenues. The Hon. W. Downie Stewart, ex-Min-ister of Finance: Your object is uot to get money for public works ?

The Prime Minister: No. It is not. Continuing, the Prime Minister said the £7,000,000 loan recently raised remained intact, yet some Reform members maintained that the United Party was spending millions at a greater rate than the. previous Government.

Mr. Stewart: What is estimated increase in debt for the current year ?

The Prime Minister: We will tell you that at the end of the year. (Laughter.) The Leader of the Labour Party, Mr. H. E. Holland: Is this £7,000,000 available for public works ? Tho Prime Minister: Yes, but T hope the lion, member does not want all of it.