IF REVENUE FELL

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

IF REVENUE FELL

GOVERNMENT'S PLANS COMPLAINT BY OPPOSITION A LACK OF INFORMATION REPLY BY PRIME MINISTER [BY TELEGRAIH —SPECIAL REPORTER] WELLINGTON, Thursday A complaint that the Government still withheld information concerning the steps it proposed to follow if there was a fall in revenue was made by the Leader of the Opposition, the Hon. A. Hamilton, during the committee stages of the Annual Taxing Bill in the House of Representatives to-night. Mr. Hamilton's remarks brought an immediate reply from the Prime Minister, Mr. Savage. " The House and the country are entitled to express disappointment at the reply made last night by the Minister of Finance," said Mr. Hamilton. *' The Minister has not softened in any way in his capacity as a tax gatherer. Wo have emphasised the point that the Government is embarking on a huge programme of expenditure and the £8,500,000 estimated as the yield from the taxes to be levied by this bill will help to meet that expenditure. The Party on Trial

" All we could get from the Government when we pointed out the extent of the expenditure was an inquiry as to what we would be prepared to cut out. It is not necessary for us to reply to that; it is the Government which is on trial, not tho Opposition." The Minister of Finance, the Hon. W T . Nash: You had your trial two years ago. Mr. Hamilton: There will soon be another. The Government had been asked what it would do in the event of a fall in revenue, Mr. Hamilton continued .••The Minister bad certainly done his best to answer that question and up to a point the Opposition was grateful to him for his reply. He had said the first thing the Government would do would be to insulate New Zealand from the effects of a world depression. In all probability that would prove a difficult task.

Defence of Government As soon as Air. Hamilton had resumed his seat, the Prime Minister rose in defence of the Government. " I can quite understand that the Opposition was disappointed with the Minister's reply,'' he said. " It seemed to me that he left them without a feather to fly with. It was as complete a reply as I have ever heard from a Minister of Finance in this House." The Opposition was concerned with what the Government would do if prices fell and the Government lost ji few millions in revenue, Mr. Savage continued. If the Opposition's amendment had succeeded the Government would have lost immediately £8,500,000 in revenue, as it would have been impossible to levy land and income tax for the year. The Government would have been' left to rely on the questionable forms of indirect taxation, which the last Government imposed. The Tit. Hon. G. Vf. Forbes (Opposition—leHurunui): Tf the amendment had been carried there would not have beon a Government. The Prime Minister: The position might have been worse than that — the Opposition might hare had a shot at being the Government. The Wolf Round the Corner i "We are asked what we are going to do if that big bad wolf round the corner turns up," said Mr. Savage. "Well, he's not going to turn up, that's all. As long as the people of New Zealand are capable of producing things we shall see that they are able to enjoy them and we are not going to be harnessed to the chariot wheels of other nations." Mr. Savage repeated that the reply made to the Opposition by the Minister of Finance last night must have impressed everyone, although some of the people listening in might have been disturbed by the constant interjections from the Opposition. Mr. H G. Dickie (Opposition— Patea"). Satan rebuking sin. "We are not claiming credit for the present state of prosperity," Mr. Savage added, "but we are claiming credit for a more equitable distribution of that prosperity."

A SHIPMENT OF OIL MR. BROADFOOT'S CURIOSITY POSITION OF GOVERNMENT [BT TELEGRAPH —SPECIAL REPORTER ] WELLINGTON. Thursday Curiosity as to whether a shipment of 500 40-gallon drums of oil recently landed at Wellington was for the Government was expressed bv Mr. W. ,T. Broadfoot (Opposition —Waitomo) in notice of a question addressed to the Minister of Customs, the Hon. W. Nash, in the House of Representatives to-day. The purpose for which the oil is required in the event of it being consigned to the Government was also sought. Mr. Broadfoot asked if the oil was for the Government's own use or, if not, whether it was the intention of the Government to enter the oil business. He also inquired if the oil was a mineral base oil and whether it had originated from Germany or through German channels in anticipation of the German barter agreement.