PROMISE DENIED

New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 13

PROMISE DENIED

REDUCING TAXATION ELECTION SPEECHES RECALLED ; [by TELEGRAPH SPKCIAIi RErORTEIi] WELLINGTON, Thursday A statement. 5 by Mr. S. G. Smith (Opposition—New Plvmouth) that the Prime Minister, Mr. Savage, had promised to reduce taxation was denied by Mr. Savage during the committee stages of the Land and Income Tax (Annual Bill) in the House of Representatives to-night. ■/" Twenty-two "months have gone by since the Prime Minister promised to reduce taxation," said Mr. Smith, "but he has done nothing about it." Mr. Savage: You produce any statement to the effect that I was going to reduce taxation. Mr. Smith: You made a statement on November 5, 1935. Mr. Savage: Produce it. Mr. Smith: I have it here. The statement by Mr. made in the Wellington Town Hall on November 5, 1935, was quoted by Mr. Smith as follows:—" Further taxation is out of the question. Borrowing means debt in perpetuity. Readjustment of taxation must not be understood to mean increased taxation, which has already been overdone." Mr. Savage: Hear, hear. I said that. Mr. Smith: The right hon. gentleman *ent further. When speaking in other centres, he promised to reduce taxation. He said the burden was too great. Mr. Savage: No, I never said that. /'There are people listening in tonight all over New Zealand who heard the Prime Minister make that statement," said Mr. Smith. " Is he going to deny that he eyer promised to reduce taxation? " Mr. Savage: Absolutely. Mr. W. A. Bodkin (Opposition— Central Otago) said the official manifesto published by the Labqur Party before the last general election contained a definite promise that taxation would not be increased, yet in the first Budget presented to Parliament by the present Minister of Finance there had been increases in taxation.