TEA DUTY RETAINED

New Zealand Herald, Volume LXXI, Issue 21910, 20 September 1934, Page 13

TEA DUTY RETAINED

REDUCTION IMPOSSIBLE ALL THE REVENUE NEEDED LABOUR'S VAIN EFFORT [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday An unsuccessful attempt to abol.ish the duty of 3d per lb. on British tea imported in bulk was made by Labour and Independent members in the House of Representatives to-day, when the Customs Bill was under discussion, but the duty was retained on a division by 37 votes to 30. The Leader of the Opposition, Mr. M. J. Savage, said if the duty 011 beor could be reduced something could be done about tea, which was used in almost every household in the Dominion. The Minister of Customs, Mr. Coates, said Labour members would continue to draw an analogy between beer and tea. The excise duty on beer was reduced to save revenue. To reduce the duty 011 tea would result in a loss of revenue of approximately £150,000 a year and a reduction in the duty could not bo contemplated at present. Saving of Revenue

Mr. D. G. Sullivan (Labour —Avon): You gave away £IIO,OOO this week. Mr. Coates: That is perfectly irresponsible talk. We reduced the excise duty on beer to save revenue. Mr. P. Eraser (Labour —Wellington Central): How does it save revenue? Mr. Coates: Increased consumption means increased revenue. The beer duties showed a falling off of nearly £30,000 last year, and it was on my recommendation that the Cabinet decided to ask the House to lower the duty. We need the revenue we get from tea and are unable to do without it. Mr. F. Langstone (Labour —Waimarino): Taking pennies from the poor. Mr. Coates: Every penny of the duty from tea is required. "This tax is being taken out of the necessities of the people," declared Mr. A. J. Stallworthy (Independent—Eden). He said that the increase made in the duty on tea in 1931 was really a heavy increase in taxation on the masses of the people and as a result retail prices had advanced by 3d to 4d per lb Mr. A. S. Richards (Labour —Roskill) said that as far as Auckland was concerned hundreds of men were engaged in part-time employment by travelling with tea from door to door, and anything that could be done 'to reduce the price of the commodity would remove a substantial barrier to the continued employment of these men. In any case the Government should remove the duty because prices had shown an upward trend owing to the regulation of production in India and other tea-growing countries. Complaint of Inconsistency

Mr. H. T. Armstrong (Labour — Christchurch East) said the Minister was very inconsistent, particularly so in vieyr of his attitude to the reduction in the beer duties the previous evening. Tea was a necessity and could not be produced in New Zealand. The Hon. J. G. Cobbe, Minister of Justice, said no alteration was proposed. A duty of 3d per lb. was already in existence.

Labour Members: We want it off. The duty was retained by 37 votes to 30. The minority tompriscd Labour members and the following Independents: —Messrs. H. Atrnore, D. McDougall, H. M. Rushworth. A. M. Samuel, A. J. Stallworthy, E. T. Tirikatene, W. A. Veitch, C. A. Wilkinson and R. A. Wright. SECTION AT WAITANGI INQUIRY INTO PURCHASE I REQUEST TO MINISTER [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON. "Wednesday An immediate inquiry into the sale and purchase of a section adjacent to the treaty hall at Waitangi was urged in notice' of a question given to the Minister of Public Works, Hon. J. Bitchener, by Mr. A. S. Richards (Labour—Roskill), in the House of Representatives. Mr. Richards said it was alleged the Public Works Department was offering only £3 as compensation for the property, for which the owner paid £4O 10 years ago, since when he had paid stamp duty, rates, harbour dues, land tax and other expenses.

ROYAL HUMANE SOCIETY SOME STATE ASSISTANCE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday Advice has been received by Mr. A J. Stallworthy (Independent—Eden) from the Minister of Internal Affairs, the Hon. J. A. Young, of his inability to reinstate the grant of £IOO previously made to the Royal Humane Society of New Zealand. The Minister has intimated, however, that as a result of correspondence with the society, he has been able to arrange for it to receive some acceptable assistance this year.