MORE TAXATION

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 13

MORE TAXATION

MR.' COATES' VIEW EFFECT OF LABOUR POLICY VITAL ELECTION ISSUE COMPLETE SOCIALISATION [BY TELEGRAPH OWN CORRESPONDENT] TUAKAU. Monday "Wo are anxious to see a scheme adopted to give national health benefits and national superannuation," said tlio Rt. Hon. J. G. Coates, in addressing an audience of over 300 peoplo in the Tuakau Town Hall this evening. "However, wo must insist that the scheme is sound, so that there will be assurance of the benefits for which the people are paying being there for them." *

Mr. Coates criticised the fact that to demonstrate the efficacy of the present scheme only the first year's estimates had been given. The construction he placed on the figures showed a gap of £8,500,000 in the first year between income and outgoings. Taxpayers should be wary of schemes of this nature. Again, expenditure on public works had increased from £5,000,000 four years ago to £20,000,000, this year, while an additional £5,000,000 was to be spent in housing, making a grand total of £25,000,000. Of this amount, £19,000,000 was to be borrowed and £6,000,000 taken from revenue. Unpayable Schemes This would not be so bad if all the borrowed money was to bo spent on payable work, but it would be many years before much of the new expenditure on railways, for instance, could be expected to return interest, if it ever did so. Such expenditure must inevitably lead to increased taxation. When interjectors challenged a statement that tlie Labour Party's policy of socialisation of the means of production, distribution and exchange involved the socialisation of the land, Mr. Coates asserted that the land could not escape.

The vital issue at the elections would be whether complete socialisation was to be put in hand or whether New Zealand was to continue to develop through the initiative and self-reliance of the individual citizens. It was this that had built the country to what it was to-day, and the freedom to exercise these qualities would be maintained by the National Party. National Party and Marketing

On the question of marketing, Mr. Coates said that the National Party proposed to allow the primary producers either to take over the present. Marketing Department and conduct it as it was operating to-day in its entirety, or to sell as they thought best. Asked if he favoured the compensating price, Mr. Coates said he recognised the principle that the farmer should have a standard of remuneration on a par with that in other industries. A motion, thanking Mr. Coates for his address and expressing confidence in the National Party, was carried, followed by cheers ijor the speaker.