PROPOSED WAGES TAX.

New Zealand Herald, Volume LXIX, Issue 21143, 29 March 1932, Page 10

PROPOSED WAGES TAX.

AMOUNT TO BE PRESSED. INTENTIONS OF GOVERNMENT. QUESTION OF INTEREST RATES. [HY TELECUt.U'H.—I'JIESS ASSOCIATION.] CIIKISTCHURC'II, Monday. In reply to a question whether it was the Government's intention to propose a further wage reduction, the Prime Minister, the lit. Hon. G. W. Forbes, said thp. question would bo considered by the Cabinet during the recess. " The proposed wages tax, amounting to Is in the pound, will be pressed for, and, of course, the reports from both the Economic Committee and the National Expenditure Commission stated that a further reduction in Government expenditure was necessary for the rehabilitation of tlio country. "The first 'cut* in wages and salaries was mads by a general order of tho Arbitration Court, but, under the proposals in view for an alteration in tho Arbitration Act, freedom is to be allowed and employers will be in a position to make the. best arrangements necessary to carry on industry. " A reduction of the rates of interest, as suggested bv the commission, will be considered at a very early date, ' said Mr. Forbes. "The matter will come under tho general heading of costs, together with tho Arbitration Court. Of course, 1 consider that there aro a lot of vety satisfactory voluntary arrangements being made to-day. They have taken place, allowing for substantial reductions. Anything that we do in tho near future will take this into account."

CALL FOR SACRIFICES. economies must be effected. [ISV TELEGRAPH.—OWN CORRESPONDENT.] CHRISTCHURCH. Monday. " However much one may regret, having to make economies in public expenditure at times like the present, it cannot 1,0 forgotten that the solvency of the country is wrapped up in the problem, and if expenditure was-not cut down, the consequences to the country and the individual would be even worse than at present," said Mr. Forbes to-day. Motives of sympathy could not be allowed to shape the public policy. The position of the country necessitated stops that were bound to 'hurt someone or other. Mr. Forbes said tho unemployment policy would be the first business to be considered when the session was resumed. He remarked on the difficulties of the unemployment situation and said he could quite realise that men on relief works might feel that they were not receiving as much as they would like. New Zealand. lynvever, was providing more for the relief of those out of work than most other countries, and there were so many burdens on the people now with extra taxation and more economies Unit any proposal to increase greatly the bui den of unemployment relief had to be watched with great care, so as not to be too severe on those who had to pay. Questioned on the possibility of a further wage cut. Mr. Forbes stressed the need for general sacrifice in the interests of the country. The situation was unprecedented and required great sacrifices. He was unwilling to do anything that would cause a burden to l>e thrown too heavily on anyone, but the position had to be faced. 'The country was carrying on under reduced national income because of lower prices for primary produce. The overseas position in Great Britain gave rise to the hope that better things were ahead. Confidence had been restored there because the people had faced their difficulties squarely and had applied remedial measures promptly. Ho was certain the people of this country would bo just as willing to face the position and overcome their difficulties.