PARLIAMENT IN SESSION

New Zealand Herald, Volume 82, Issue 25287, 22 August 1945, Page 8

PARLIAMENT IN SESSION

DREAR YJJUDGET ME HOLLAND'S ATTACK NO PLANS; NO TAX RELIEF CLINGING TO CONTROLS (S.IL) WELLINGTON, Tuesday A plea for a simpler presentation of the Budget so that it could bo understood by the taxpayer was made by the Leader of the Opposition, Mr Holland, when opening the debate on the Financial Statement in the House of Representatives tonight. Before the debate commenced the Minister of Finance, Mr Nash, formally presented his revised estimates of war expenditure, which were published yesterday. The important task facing the Government was the demobilisation and rehabilitation of 100,000 men and women from the armed forces, together with the several thousands of people who had been manpowered from their normal jobs, said Mr Holland. The war had not been fought to make permanent, the people's temporary loss of freedom or the system of State socialism or the system of rationing, coupons, licences, permits and the unending filling in of forms. It had been fought and won so that people might be free to live their own lives in their own way, free to raise their families and free to choose their occupations. People wanted freedom from fear of having to lean On a Government and from the fear of misfortune and old age. An Instance ol High Oosts As an instance of the experience which would be faced by men returning from service, Mr Holland quoted the case of a man who wanted to build his own home and who would have to pay t-'iOO for a five-roomed house of 1150 square feet. Paths, fences and section were extra. Tho costs of raising a family had increased enormously. There was the sales tax of 20 per cent on perambulators, cots, washing machines, vacuum cleaners, carpets and cooking stoves, and 10 per cent on children s footwear and clothing and blankets. The Government must_ accept the responsibility for these high costs. "The original Budget was easily the driest, most lifeless, and unimaginative of the ten so far produced by the Government," said Mr Holland. "The only conclusion that can be reached is ' that the Minister of Finance could not bear the thought of giving up some of the precious taxes which he has the pleasure of handling. It is apparent that he is obsessed with the idea that the Government enn spend the people's money better than those who earn it. Crushing Taxes to Continue "Obviously a Government which is nine years old has lost its punch and, wearied by war, it.has lost its imagination," Mr Holland continued. "I do not suppose that there is a Minister of Finance who is more out of touch with the common people and the same applies to the Prime Minister. They have been tied to Wellington, but they should got away during the next 12 months, meet the people and hoar what tliev are saying." Mr Holland said that in the original Budget the people at least expected some outline of the Government's plans, a substantial reduction in taxes and the removal of some of the controls. But they were given no proposals, no tax relief and no controls to be cancelled. The main features of the Budget were that the crushing taxes were to continue, that industry would receive some concessions in 1946-47 and that there were to be certain benefits. There was not a word for those thrifty people who bv their own self-reliance had made provision for their old age. The Government was to be congratulated on its decision to help industry, but this would not take effect until next year, whereas it was now that industry should be organised to provide positions for ex-servicemen. Not Election Year

"Although this is not election year the Government is obviously anxious to have a bumper surplus this year, so as to be able to announce a bumper decrease in taxation next year, wliich is election year," said Mr Holland, when referring to the supplementary Budget. "Everyone thought that with the war over there would bo a substantial reduction in taxation. The Minister of Finance is like a boxer who decides to get in the first blow. Ho anticipated the demand for a reduction in taxation, so be forecast a huge increase in expenditure, i think he even surprised every member of his own team. Although the war is over almost every item of war expenditure has gone up, so that there has been a total increase of £.'U,000.000. "One thing which the Minister of Finance has overlooked is to tell the House and the public how he intends to get this extra £34,000,000. Is it to be by some extra taxation later in the financial year, or does the Government intend to raise another loan? Another omission was anv mention of the memorandum of security and the £18.000.000 which is to come up for review when the war is over. Government's Great Opportunity "Never has a Government had a greater opportunity of announcing a courageous plan to free industry and trade from wartime controls, to slash deep into wartime taxation and to reduce living costs. The Government had a full week to revise its plans and it knew the nation-wide demand for a big tax reduction and the relaxation of war controls and wartime regulations. "A Government wortli it« salt would lißve gone through the war regulations to see how many could be cancelled. It is obvious that trie Government has completed its course, has run its race and is now ready to make way for a team of younger men." "The Minister said that the time had not come yet for a general review of taxation," said Mr Holland. "I entirely disagree, as do the majority of the people. Nothing retards production and employment ns does high taxation. We must restore the country's economic balance, both internally and internationally. We must arrest the growth of the system of subsidies. Wo must get

down our oosts. The principal means is to reduce taxation. Apparently we will have to wait nntil August, 1946, when the country will be in the throes of an election, before the Government's plan for reducing taxation will be known. If taxation is reduced, it will obviate the need for increased subsidies and will arrest the spread of wages chasing after prices. "The fact that taxation can bo reduced is shown by the fact that the j Government aireadv has £10,000,000 in the kitty —a surplus of £9,000.000 in the War Expenses Account and more than £1,500,000 in domestic finances at the beginning of the financial year. Reduced taxes should he the foundation of future planning." Although the Minister in his Budget had said that the Government had been successful in financing wartime expenditure by methods which had kept monetary inflation within very restricted bounds, this could scarcely be called anvthing else but inflation, said Mr Holland. One of the greatest mistakes of the Government was that there was no post-war credits scheme as in Britain. This would have offset inflationary effects, kept prices down, conserved post-war purchasing power and ensured more employment. Inflation reduced the purchasing power of money and the destruction of the poor man s pound was much more serious than for the rich man. Referring to trade prospects, Mr Holland said that the prospects for primary industries were bright if New Zealand could increase production. There was an unlimited demand and assured markets. Continuing Mr Holland said restrictions, quotas and lockouts were playing into the hands of agitators. The dairy industry in Now presented a verv disturbing picture. There was a steady decline in total production, the number of suppliers, the number of milking cows and the production per cow. In view of this he was disappointed that no plans had been announced to arrest this decline. DEEP GRATITUDE VICTORY RESOLUTIONS ADDRESS TO THE KING (P.A.) WELLINGTON, Tuesday When the House of Representatives met tonight two resolutions relating to the achievement of victory were carried without debate. They were: — "That members of this House of Representatives in Parliament assembled, on the occasion of the cessation of hostilities, express their deep sense of gratitude in the complete defeat' of all our enemies, extend their wholehearted congratulations to all those who have contributed to the achievement of victory, record their deep sense of gratitude to all those citizens of New Zealand, Maori and pakeha, who in the armed forces gave or offered their lives in the service of their country, or who in all spheres of industrial activity, primary or secondary, and in all other ways worked for the common cause, and express their determination to co-operate in any action, national and international, that will promote the increasing wellbeing of New Zealand people within the wider framework of world peace and social welfare."

"That a respectful address in the following words be presented to His Majesty the Kin";: —To the King's Most Excellent, Majesty—Most Gracious Sovereign—We, members of this House of Representatives of Now Zealand in Parliament assembled beg leave to express to Your Majesty our heartfelt congratulations upon the complete military defeat of all Tour Majesty's enenrtes.

"We would express our gratitude to Your Majesty who, throughout the years of war, kepi us ever conscious of that union of hearts and purposes which links your peoples of the British Commonwealth and Empire and which made of our joint efforts the willing co-opera-tion of firm brotherhood determined to uphold right and defend our common heritage. Believing that our responsibility does not cease with the conclusion of hostilities we affirm our intention to make our full contribution to such practical actions as may be necessary to preserve peace and ensure for our own and for all peoples the highest standards of human welfare." Both resolutions were moved by the Prime Minister, Mr Fraser. and I seconded bv the Lender of the Opposition, Mr Holland. They were carried without discussion. NEW MEMBER OF HOUSE (S R.) WELLINGTON. Tuesday The newly-elected Government member for Dunedin North, Mr R. Walls, was sworn in as a member of the House of Representatives when the House resumed tonight. He was attended by the senior Government Whip, Mr A. S. Richards, and the junior Government Whip. Mr D. W. Coleman. Mr Walls took his seat in the back bench which he shnres with Mr P. Neilson (Government —Dunedin Central). OVERSEAS SHIPS (S.R.) WELLINGTON, Tuesday Next-of-kin see no reason why the dates of departure and arrival of ships carrying former prisoners of war or returning service personnel cannot bo announced now that the war is over and press censorship has been lifted. When this question was put to the Minister of Defence. Mr Jones, today, he replied that the Japanese were still fightill)]: in certain areas and there was n possibility that enemy submarines might still be operating. He hoped to make an early statement dealing with the position. NEW EXPORT WHARF A statement that if the conveyors for carrying butter from the near-by cool stores could be delivered within eight months it might he possible to have the new export wharf operating in 12 months was made by the engineersuperintendent of the Auckland Harbour Board. Mr D. 1 lolderness, at a meeting of the board yesterday. Three tenders for conveyors were received by the board and were referred to the board in committee.