BUDGET PROPOSALS.

New Zealand Herald, Volume LXVII, Issue 20630, 31 July 1930, Page 13

BUDGET PROPOSALS.

MR. HOLLAND'S SPEECH. INCOME TAX SUGGESTIONS. FURTHER REVENUE POSSIBLE. [RY TELEGRAPH. —SFKCIAIj HEFORTER.] WELLINGTON, Wednesday. Tho Labour view on tho Budget taxation proposals was explained in broad detail by tho Leader of tho Party, Mr. 11. E. Holland, when speaking in tho Financial debate in tho Houso of Representatives to-day. "Ono portion of tho Budget of which wo are in favour, although it does not go as far as we would wish, is that in respect to tho income tax," said Mr. Holland. Mr. W. D. Lysnar (Reform—-Gisborne): How would you go about it? Mr. Holland: Wo would go far enough to catch the hon. gentleman. I do think that tlio super-tax on land should bo retained 011 estates of £20,000 and more in value. Tho Lender of tho Opposition, the Right Hon. «T. G. Coates: Unimproved value? Mr. Holland: Yes. Mr. Coates: Is £15,000 too low? Mr. Holland: If the lion, gentleman will move in that direction wo will consider his proposal. Continuation of Graduation. Commenting on the proposal to increase incomo taxation by 10 per cent., Mr. Holland said tho tax was graduated to about £6OOO, and then it. became a tint tax of 4s Od in tho pound on all higher incomes. He thought that utterly wrong in principle. Tho grade should he. sleeper as tlio si/.o of tho income increased. It might bo said that would hit companies, but Mr. Holland suggested companies could bo graduated on their undistributed profits. Ho was not prepared to say that land tax should bo abolished, as it must come in as a method of breaking up largo estates, but income tax was undoubtedly tho most equitable foriri of taxation. He did not beliovo tho Government was getting from income tax tho amount it should get. "When wo look at the higher incomes it seems to me that tho Government could well mako that a field for exploration to obtain a much greater revenue than at present," said Mr. Holland. "Tf ono thing stands out above all others, il is that tho wealthy section of tho community has escaped paying its fair sliaro of tho taxes. More and more the burden of taxation is being placed on tho rank and file. One of tho faults of the Budget is that a number of items aro purely revenue-raising, especially in the matter of company taxation. Tax on Bank Notes. "The Budget proposes to lift the bank note duty from 3 per cent, to per cent.," continued Mr. Holland. "Every thinker in the House will support that proposal." Mr. Coates: Oh, I don't know.

Mr. Holland: I said every thinker. (Laughter.) Would not the public credit of New Zealand be quite as effective, if not more effective, beliind tho notes of a Stateowned bank than behind the notes of the private banks ? '1 he day was fast coining in the country when any Government that was going to tackle the organisation of the national credit would have to consider the institution of a straight-out State bank. There was a proposal in the Budget to add 10 per cent, on to tho estates of deceased persons in excess of £IOO.OOO, bringing the maximum duty on largo estates* up to 50 per cent. That was all right as far as it went, but he did not think the tax should stop at 30 per cent, on the largo estates. The Labour Party took the strongest possible objection to the manner in which it was proposed to increase the, tax on amusements. There, again, the United Party was following the bad example of the Reform Party. There was no proposal to put a tax on the higher-priced tickets. The Tariff Changes. Tombing upon the customs tariff, Mr. Holland said he laid it down as a general principle that no party or politician could be absolutely in favour of free trade, or absolutely in favour of protection. The Labour Party contended that goods not produced in New Zealand should be admitted duty free, that there should be a preferential tariff if Britain could produce those goods, and that if Britain could not produce them, they should be admitted duty free under-the general tariff. There should be no taxation on necessities for the purpose of raising revenue. Duties should be imposed for the purpose of protecting industries natural to New Zealand. Referring to the tax on tobacco and cigarettes, Mr. Holland said that opinion was divided in the ranks of the growers and the manufacturers as to the effect that the additional burden would have on the industry. He had been inundated with telegrams and letters protesting against, the tax, and claiming that it would operate decidedly to the disadvantage of the New Zealand tobacco grower. The unmanufactured tobacco would be allowed to come into tho country at a lower duty and at tho satne time the excise duly of New Zealand tobacco was increased from Is 8d to 2s Bd. Railway Policy Criticised. Mr. Holland said tho Government proposed to save money by discontinuing the subsidies granted to non-productive milway branch lines. It seemed to him that there was a close relationship between the methods of tho Reform Party and those of the United Party. The Reform Party transferred sums of money from the Consolidated Fund to the Railway Account and produced a balance-sheet showing a profit in a year when there was a. heavy loss. Tho present Government bad do cided to discontinue the subsidies, and contended that by so doing so much would be saved to the Consolidated Fund. Mr. Holland failed to see how it was money saved, as tho money had to como from tho Consolidated Fund in the long run. Mr. Holland said he disliked making attacks, but lio could not refrain from referring to the personnel of the Royal Commission which had been appointed to investigate tho railways. On the commission was a man who had filled the position of general manager of the railways at one time and who had retired drawing an emrmous superannuation. He was now interested in a business which was competing against the railways, and yet lie bad been asked to report on how to make tho railways pay. LEGISLATIVE COUNCIL. ROSS SEA WHALING. QUESTION OF LICENCES. [BY TEI.EOR \PII. —PRESS ASSOCIATION.] WELLINGTON, Wednesday. The Legislative Council met at 2.30 p.m. to-day. Sir James Allen (Olago) asked whether the Government was aware of any fishing for whales in Ross Sea without a licence, and, if so, would the Government indicate the name of the ship and the nationality. Tho Deputy-Leader, tho Hon. R. Masters, replied that tho Government was aware of unlicensed floating factories which wero operating. They were both Norwegian, tho names being Neilsen Alonso and Kosmos. The Rent Restriction Continuance Bill was received from the llouso of Representatives and road a first time. Tho Council adjourned until 2.30 p.m. to morrow. (