CRITICS FACED

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 15

CRITICS FACED

TAXATION PLEDGE

PRIME MINISTER'S REPLY

DENIAL OF PROMISES

HIGH EXCHANGE TO CO

COSTLESS CREDIT QUERY

(Parliamentary Reporter.) WELLINGTON, this day

Facing Opposition criticism ihat he had fouled in his pledge to reduce taxation, the Prime Minister, the fit, Hon. M. .1. Savage, found an alert interjecting audience when, intervening in the debate on the taxing measures in the House of Representatives to-day, he repeated that tho sales lax and the high exchange rate will disappear. The Hon. A. Hamilton (Nut., Wallace): But; didn't, you say you were not going to increase taxation. Mr. Savage: I did not put it that way. I said that taxation was overdone, and also that; I here was a use of the public credit in the wrong direction. I never said that then; would be no borrowing, but that there was no reason to go abroad to finance a job we can do ourselves. Some forms of taxation in existence to-day will disappear. That harrier between us and Britain must be pulled down. Mr. ('. A. Wilkinson (Nat., Egniont): What. \\\\- is that ? The Prime Minister retorted with mi emphatic, declaration favouring direct taxation instead of indirect. The barrier he meant was the high exchange rate, which must go. MAKING HIS OWN SPEECH The fir.. Hon. ,L. G. Coates (Nat., Kaipara): 'When? That's what, the public would like to know. Mr. Savage: We will lake the public into our confidence as soon as wo reach the point to put that into operation. Mr. Coates: You have already told us that. I'jvorybody is on his toes to know when. Mr. Savage: \ wish my friend could read sonic of! the letters L get'. Mr. Oout.es: And we wish you could. read some of tho letters we get. (Laughter). "Where do you stand on costless credit'" asked Mr. >W. .1. Poison (Nat., Stratford), .adding that the Prime Minister in one breath favoured it and in another did not.

.Mr. Savage retorted that he was going to make his own speech, However, he repeated his former declaration that the Government would create a money system which was u true reflex of the country's production so that the rank .and file of the people would be able to buy as well as produce. To-day they could only buy half. He wanted them to buy the whole of their production.