COUNTRY'S PROSPERITY

New Zealand Herald, Volume LXXIV, Issue 22819, 28 August 1937, Page 14

COUNTRY'S PROSPERITY

NO EVIDENCE OF SLUMP MR. SAVAGE EMPHATIC TAXATION FOR PENSIONS [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Friday "It seems to me that skimp prophecies are about as common in New Zealand just now as noxious weeds," said the Prime Minister, Mr. Savage, in an interview to-day. "Fortunately there is a coinpleto answer to tho croakers who are doing a disservice to their fellow-citizens. Tho country is more prosperous to-day than it has been for many years. "There is no evidence whatever of an impending-slump. Let me state again with emphasis that New Zealand's prosperity under tho Labour Government is substantial, extensive and firm, and, what is more, the economic barometer is still rising." Sir. Savage said tho taxable incohio of companies during tho last financial year increased by 16 per cent, and the assessable incomes of individuals rose from £47,200,000 to approximately £53,500,000, an increase of nearly 12 per cent. Taxation revenue had ccr r tainly gone up by several millions of pounds, but it could jiot have expanded so greatly if the national income had not also increased. "Moreover, I can allow no one to forget tho purpose of Labour's taxation adjustment," said Mr. Savage. "The first Labour Budget made it clear that the readjustment of the scale of taxation was deliberately designed to yield sufficient revenue to meet increased pensions and the gnmting of peusions to invalids for the first time in New Zealand. Over 103,000 persons aro receiving better pensions than had ever been paid before. This total represents an increase of 20,000 pensioners over tho 1935-36 figures, and an increase in the annual value of pensions paid from £3,800,000 to £5,900,000."