BUDGET DEBATE

New Zealand Herald, Volume LXXVII, Issue 23708, 15 July 1940, Page 9

BUDGET DEBATE

LITTLE PROGRESS NATIONAL SECURITY LEVY CONJECTURE OVER DELAY [BV TET.EORAI'TT —SPECIAL REPORTRIt] "WELLINGTON, Sunday With two sitting days occupied by another secret session, the House of Representatives made comparatively little progress with the Budget debate during the past week. There was. moreover. a dreary sameness about speeches made on Thursday, when the discussion of the Financial Statement was resumed. but on Friday a brighter tone prevailed, some fresh ideas were introduced, and the debate took a fresh lease of life.

When the House adjourned on Friday afternoon for the week-end, 26 members, including a number of Ministers, had spoken. They comprised 13 representatives of the Government, 10 of the Opposition, the two Independents, and one member of the Democratic Labour Party. There are still, however, several Ministers and other prominent Government members, as well as leading figures in the Opposition, who have not contributed, and it is not expected that the debate will end abruptly without some of them being heard. Income Tax Changes

The introduction of the Land and Income Tax (Annual) Bill and the Land and Income Tax Amendment Bill, during the week, resulted in a brief explanation being given by the Minister of Finance, the Hon. W. Nash, of the changes contemplated in income tax law. Some are of a highly complex and technical nature, and a much fuller explanation, particularly in respect of abstruse aspects of company taxation, will be given by the Minister when moving the second reading. In reply to a question, however, Mr. Nash indicated that tho sum to be paid in national security tax would not be deducted lrom taxable income for income tax purposes.

A suggestion made during the week that consideration was being given to some amendment of the proposed national security tax of Is in the pound to afford relief to people on low wages has gained added strength by the nonappearance of the Finance Bill levying the new tax. It is believed that the measure has been ready for presentation. in its original form as forecast in the Budget, lor some days, and the delay in bringing it forward gives rise to the belief that serious thought is being devoted to a possible alteration. Opposition to Levy

Sections of organised Labour are known to be strongly opposed to the further levy of Is in the pound on income. and this may, it is believed, be a powerful influence on the Cabinet. The result is that the Finance Bill is being awaited with the keenest interest. So far there has been no indication of when it may be expected to appear in the House.

Uncertainty as to the likely duration of the session was expressed by the Prime Minister, the lU. Hon. P. Fraser, during the week. He hinted that the House might remain in session almost indefinitely, with adjournments from time to time, and this course is likely to prove acceptable to members, who are loath to see Parliament prorogued in view of the war. At the same time, the Government's legislative programme is known to lie not extensive, and it would appear that brief sittings ;*s required, with adjournments of varying length, may be the order as soon as the few hills to be brought down have been passed.