EXTRA PRIMAGE DUTY

Poverty Bay Herald, Volume LV, Issue 17125, 4 December 1929, Page 4

EXTRA PRIMAGE DUTY

NECESSITY EXPLAINED STATEMENT BY PREMIER (Per Press Association.) WELLINGTON, last night. The Prime Minister .to-day referred to certain comments relative to Customs revenue for the past, eight months of the financial year, with particular bearing on the increased primage duty.

lie said: “It will be remembered that in estimating the Budget .for the current year, I pointed out- that I had to face the necessity of obtaining a revenue returns of £1,570,000 over and above the revenue recopits of the previous pear. An analysis of this amount was given by me in the House last session, showing that £577,000 was required in the first place owing to the deficit in the ordinary revenue account of the Consolidated Fund, £733,000 almost, wholly for increased interest and other rigid items, and £260,000 allowed for the supplementary estimates. .1 also pointed out that these additional receipts could not be expected in automatic, increases from the preesnt taxes, and that, in order to ensure a. balanced Budget, I had to consider extra taxation and take iio risks of failing to secure the estimates or revenue compiled by experts and presented to me. The Customs revenue last year, almost, wholly in the last quarter, failed to realise its estimate bv £300,000, the main factor in bringing about the deficit.

“I notice it has been stated that Custonvs may be expected to yield the extra £450,000 required by the Burge t, without the assistance of the extra £300,000 estimated from the additional primage duty. The complete figures to the end off November are not available, but the Treasury returns for seven months to the end of October certainly do not justify such a statement. Apart from the duty on tyres and motor spirits, which goes to the highways account and does not, assist the general Budget, the Customs revenue for the seven months amounted to £4,970,820. Seven-twelfths of the estimate for the year would amount, to £4,900,000, so that the excess receipts, including the additional primage, amounted to only £70,820. “The position is Hurt; it is impossible to isay with any degree of certainty what the Customs revenue is going to be during any month or period of months, and at this juncture it is very important that there should be no risk of failure to realise tho year’s estimate at March 31 next.’’