DOMINION FINANCE.

Otago Witness, Issue 3613, 12 June 1923, Page 7

DOMINION FINANCE.

SIR JOSEPH WARD’S STATEMENTS. “MISLEADING AND INCORRECT.” WELLINGTON, June 4. The report of a speech by Sir Joseph Ward at Invercargill containing critic,sms regarding taxation was referred to by f : ,e Prime Minister. “Sir Joseph Ward's statement is misleading and incorrect,” said Mr (Massey, “so far as income tax in England is concerned. He said it was 4s 6d. That is right, but the super-tax is 6s, and nas never been reduced since it was imposed during the war, so that, the total British income lax now is 10s fid, with the exception of a reduction which has been recently indicated by the Prime Minister (Mr Stanley. Baldwin), though if iny memory serves me correctly there is Is in ihe £ corporation tax in addition. Our maximum income tax, it is quite true, is 7s 4d in the £ at present. I propose to ask Parliament lo reduce taxation by two millions during the next session. We shall be able to do that, and the income tax will come down to approximately 5s in the £, though I cannot say to a farthing at the moment, nor shall 1 be able to do so for some weeks to come. As for the increase since the war, Sir Joseph Ward seems lo imagine, or tries to make the public believe, that on the day the Armistice was signed everything was paid off. As a matter of fact we had. practically all the cleaning up io do after lhat date. There were £S6,(XX),O{X) worth of liabilities directly arising out of the war, £9,(XX),000 for discharged soldiers’ housing and settlement-, and £23,000,000 for purposes which come under the heading of Public Works. As for the surplus which was invested in London when Sir Joseph resigned from the National Government, that, along with the £9,000,000 already referred to, wa3 used for soldiers’ housing and settlement, and if £17,000,000 had not been available it would have been almost impossible to have gono on with those two purposes, as money for borrowing was not available m London or New Zealand at that time. I am quite satisfied that soldiers’ housing and settlement will be a very useful asset to this country in years to come. It is paying nominally 4g per cent,., of which i per centgoes for administration. As for penny postage, that has been arranged, and the public will be notified in tho Budget of the date upon which it will come into operation. Tho plain truth is that the finances of New Zealand are in a better position to-day than in any other country in tho British dominions, and if he will allow me to say so Sir Joseph Ward should be more careful of his reputation than to make such grossly incorrect statements. ”-