N.Z. LABOUR DIVIDED

Poverty Bay Herald, Volume LXIII, Issue 19100, 22 August 1936, Page 15

N.Z. LABOUR DIVIDED

* SYDNEY PAPER'S CLAI& "SOCIAL CREDIT ISSUE AUCKLAND "UP IN ARMS'.' A claim that the New Zealand Parliamentaxy Labour Party is divided into t*-* groups, one led by the. Prime MmisWr, the Rt, Hon. M. J. Savage, and hf other by the Minister of Finance ! the Hon. W. J Nash, is made by a Sydney publication, The New Era, which, in a recent article under the heading iN./.. Baulks at the Hurdle," states:— " The Zealand Treasurer was a snook to Social Creditors all over the world, a ? d ,*Xl that the Bah'our Government has bau ked at the Social Credit hurdle and is taking the easier path beaten by sound finance.

Elected-on a promise to reduce taxation, its first Budget provides for an allround increase in taxes. Taxes on tie incomes of single. men have been mcreased by. approximately 100 pei cent and about 33. 1-3 per cent m the case of companies. The rate of taxation is now the highest in the history of the Dominion. '

A cable message from Auckland shows the Government's, swing to debt finance "There is an all-round increase idi taxatioh, but bv following strictly orthodox methods arid not embarking on iantastimi financial experiments, the, maLmdl Finance, Mr. Nash, has given a mB& of confidence that proved methods of-'iinanrial administration will not be disturbed." That must be comforting to the banks, but. it is exasperating to enlightened opinion, and meetings of protest are now beiriff organised throughout the dominion. In fact, Auckland province is un in arms about the betrayal of elec-tion-promises, and a strong committee has been formed to meet the Prime Minister and Auckland members ol 1 arhainent on August 15. Lkftw (There is going to lie some straight talking. It h known lhat the Government is alreadv divided by the issue, J 9 members led by Mr. Savage hang in faTOur of financing on Social Credit lines, and 25 led bv Mr. Nash insisting on adhering to "sound" finance, i.e., debt and taxation.