A Rasper.

New Zealand Mail, Issue 848, 1 June 1888, Page 27

A Rasper.

Nobody can pretend to feel afc all surprised that the Government have ex-' perienced, and are experiencing, considerable difficulty in framing a financial policy that is likely to be fairly satisfactory fco the House or to the country. In the first place it must necessarily be a very nasty pill to everybody that, after all the stringent retrenchment which has been effected, additional taxation proves still fco be unavoidable, as is generally understood to bo the case. And in the next place it is frightfully difficult fco devise a mode of taxation that shall not elicit a roar of indignation from some quarter. As to any hope of escaping further taxation, that., we fear, “ is past praying for.” ■ Last year’s deficit as funded was £400,000. Thus, if savings to the exenfc of £300,000 were made in this year’s expenditure it would still leave another £IOO,OOO to be provided for. Then the new loans amount to £2,000,000 at 4 per cent., which, with the £400,000 deficit debentures afc 5 per cent., makes a total of £IOO,OOO extra interest to be provided by the Colony, although as only a portion of the new loaBS will be expended afc first, the balance will of course be deposited, and so will be earning its interest or thereabout. But in spite of this, and with the most skilful and favourable handling of the figures, it will hardly, we fear, be possible to show that the Colony can do without additional taxation. And then comes the formidable question : What shape should it; take? That the needful sum could be raised most readily, and without inflicting any appreciable hardship, by increasing the tea and sugar duties, is patent, to everybody. Threepence on tea and a halfpenny on sugar would bring iu a very large sum—probably all that is wanted ; while, if it had the effect of raising the prices of those articles afc all, which is by no means certain, it would still leave them far cheaper than they were a few years ago. In fact, no real hardship would be involved in levying such increases, and the money would be raised without any additional expense ’of collection.- But it is said- that several Ministers and a majority of their supporters deem themselves debarred by their hustings pledges from resorting to this simple and non-oppressive method of “ raising the wind.” It is to be regretted if members have really pledged themselves to oppose what may at no distant date prove an imperative step in the public interest. But, apart from this, we recognise that there is a very strong argument that may be put forward against resorting to these convenient duties just at the present time, if they can be done wichout. And that is the desirableness of keeping some sort of reserve or nest-egg available in case of extrema need. While we refrain from increasing the tea and sugar duties, we have always accessible an easy mode of raising a large . additional revenue. Ought we not to reserve that for & graver emei’geney than exists at present ? If we can do ao, it is manifestly desirable that we should. It has been suggested that by taxing the totalisators, by reducing the Propertytax exemption from LSOG to and abolishing the exemption when the property - value held by any one person exceeds that sum, and, by laying a heavier impost upon absentee property-owners, the requisite sum could be obtained with little difficulty, and that a small school-fee would greatly help the educational expenditure. AIL these proposals are worth considering ; but a sweeping all-round, increase in Customs, which would have the effect of materially enhancing the cost of living, is earnestly to be deprecated.. In some eases an increase in the duty p by stimulating local production and competition, may have the indirect effect of cheapening, the price to consumers. But in these cases of course the revenue would not gain, and if & larger State, income is indispensable, it wrill ha.ye to., be provided from somesource. Possibly a small increase oxs tea, added to one, or more, of the* measures which have been suggested r and which we have already mentioned,, might be found to ; give-as much additional revenue as is wanted by fch% Treasurer.