UNEMPLOYMENT LEVY

Otago Daily Times, Issue 22367, 14 September 1934, Page 10

UNEMPLOYMENT LEVY

A BURDENSOME TAX GOVERNMENT WORKS IN VIEW (From Our Parliamentary Reporter) WELLINGTON, September 13. The Government’s action in reducing the wages tax from Is to lOtl iu the pound, a course consistently criticised by the Labour Party, was defended by the Minister of Finance, Mr Coates, to-day. “ Some hold the opinion we should not have reduced the tax,” said Mr Coates. “In my opinion that tax bears more heavily on the community thorn any other tax. We knew that when we imposed it. Take the case of a man getting £4 a week who sees 4s disappearing under his eyes. It has been stated that by making a reduction of 2d the unemployed will suffer. In half a year the reduction will amount to £500,000. The Unemployment Board carried forward a surplus of £1,000,000 from the previous year.” A Labour voice: Shame! Mr Coates said the board had had commitments and had wisely preserved its funds as an alternative to being compelled to make a further charge on the taxpayers. Fortunately the number of unemployed had declined so that the provision made by the board bad not been required. Mr Coates explained that far from the unemployed being unfairly treated the Budget proposed an increase in the Public Works vote to £3.500,000, which was £1,000,000 more than the previous year’s vote aud would enable a larger number of men to be placed in work at standard rates of pay. The Government also had proposals for erecting Government buildings, and plans aud specifications were now under wa3’. Mr Parry: How many will you have under ivay by the end of the year? Mr Coates: Just as soon as plans and specifications are prepared wo Mill go ahead. We are also keen to go ahead, with housing, but that responsibility rests to a large extent with the local bodies.” Mr'Parry: They have no money. Mr Coates: I do not know a time at which local bodies could borrow money more cheaply than now. Mr Veitch; The Loans Hoard to a largo extent prevents them from borrowing. Mr Coates: The question has been discussed with the chairman and several members of the Loans Board. The difficulty at present is to get the local bodies to go ahead. The Auckland City Council is a case in point. The local bodies* the Unemployment Board, and the Government should get down to it. Now that we have-the men and can get money at reasonable rates we should see if we cannot get some of the old houses out of the way and have people living under more modem conditions. Mr Semple: There is no more urgent work. Mr Coates; The Government thinks so, too. . ■ , . Concluding, Mr Coates said ne had mentioned these things to justify the reduction of 2d in wages tax. He would like to see a further reduction as soon as conditions improved.