WAR FINANCE

Otago Witness, Issue 3403, 4 June 1919, Page 41

WAR FINANCE

TAXATION AND LOANS. GOVERNMENT'S POLICY DEFENDED. WELLINGTON, May 29. Exhaustive reference to taxation and -war leans was made to-day by Mr J. Harknesa in his presidential address to tho Wellington Chamber of Commerce. He said that, adverse criticism in regard to raising from 40 to 50 millions looally was unwarrantable. Whatever opinions might bo held on the subject, it was a matter for congratulation that the dominion was in a position to help itself when the Imperial Government was burdened with the obligation of raising enormous sums for war purposes. It. was, he considered, unreasonable for this dominion to expeofc assistance from it in such, a time of financial strain. The policy adopted in England was of repaying portions of loans out of revenue. It was practically impossible to nlace a heavy burden on the shoulders of the taxpayer by immediate repayment, which would mean the depletion of the capital required for the development of resources and the- expansion of our present industries. To hold that tho interest payable on war loan investments should be subject to income tax, was to overlook the fact that without some inducement the money would not have been obtained. To obviato that difficulty the rate of interest would have been increased, which would be no good to the dominion financially. No one objected to tho extra revenue raised by the Government during thai past five years, but exception might reasonably be taken to the incidence of that taxation. The land tax had been left severely alone. This, he maintained, was not <i policy which was conducive to the beat interests of the community. SPEECH BY MR MYERS. VALUE OF EXPERT ADVICE. WELLINGTON, May 29. The Hon. Mr Myers referred to the in* creased financial burden that would have to be borne by the people of the dominion in consequence of the war, and said it was plain that there must be increased production. The country must not overlook tha fact that the apparent increase in exports during recent years had been due chiefly to high prices, and when prices began to fall again the country would be in a difficult position unless production had been increased in the meantime. He was entirely in accord with the nolicy of securing expert advice for the Government in business matters. He had proved great value of expert advice m his work as Minister of Munitions and Supplies. Tha business men who had advised him had saved the country hundreds of thousands of pounds. No Minister could know enoughto handle all the intricate problems that came before him without the advice •of experts to guide him.