HOUSEBUILDING

Poverty Bay Herald, Volume LXIII, Issue 19133, 30 September 1936, Page 13

HOUSEBUILDING

OLD SUBSIDY SCHEME ENDING TO-DAY SERVED PSEFUL PURPOSE (Per Press Association.) WELLINGTON, last night. The Minister of Labour, the Hon. H. T. Armstrong, sounded the deathknell of the house building subsidy (No. VJ), scheme operated by the era.-. ploymcnt division of his department, when he announced that the scheme would cease to-morrow. This means that applications received later than the first post on the morning of Thursday, October 1, will not. receive consideration.

Mr. Armstrong explained that (lie house building subsidy scheme was inaugurated at a lime when the economic depression had caused an almost complete cessation of building operations, and the necessity of retailing trained men in their .occupation and of reinstating those already unemployed "was paramount. The operation of the scheme was particularly beneficial in this direction, and although on several occasions reviewed it was allowed to continue in view of its efficiency in promoting employment ami decreasing unemployment in building and its related trades. "With the improvement of the economic position," he continued, "it is found that competent building tradesmen are almost at a premium and this, coupled with the advent of the Government's housing plan, with its attendant absorption of these skilled operatives, clearly shows that the necessity for the house-building subsidy scheme has passed away."

The Minister said the following figures would serve to give some indication of the extent to which the building trade generally had been stimulated since the introduction of the scheme:—

Applications approved, 32,003. Number of men employed for varying periods, 54,Gfi4. Net amount of subsidies granted, £016,997. Total value of work proceeded With, £9,175,98:"5. 01: the total value of £9,175,950, £SJ represents the amount which it is estimated was paid directly and indirectly in wages.

between £7OO and £ICOQ the average increase was only IS per cent. 'Lheincrease on unearned incomes between £7OO and £IOOO was only V per cent, 'l'ne government professed ah along the lino mat ability 10 pay should bo the basis on which taxation should be levied, and they found at the present stage tnat tue Government was increasing tiie tax <?n smaller incomes, by 60 per cent and Oil higher incomes by from i to 15 per ceut, RANK AND FILE! TO PAY

Air. W. J. Lyon (Lai)., Waitemata) said the Government had been twitted with not keeping its election promises, but he reminded the Opposition that tne Government had been m office less than 12 months. It had two years yet to go in which to keep its promises, and they would be kept. He submitted that the matters raised by the Opposition were arguments, not s.I much against, the bills, but were merely arguments to discredit the Government. It llio Opposition was sincere, it would move an amendment in committee to increase the tax on higher incomes. Ah'. Coatcs: Standing Orders will not allow it. Ail'. Lyon: Is that not a beautiful letAlr. 11. .1, llolyoake (Nat.. Motueka) said that the last Government had made some reductions in taxation, and if it had been returned would have made more. The Opposition contended that the anticipated increase in revenue was enough to pay -for the. extra, social services, 'fho Government, bad found, in spite of all it had said. that, when it wanted money it had"to go to the rank, and file, and the great bulk of the present taxation would come from the rank and file. The second reading of both bills was carried and the House went into committee to consider the clauses. The. Alinister of Finance, tlix; Hon. W. Nash, replying to points raised, said that there had been some criticism by Opposition speakers that the increases in higher salaries were not in the same proportion as the increases in salaries betwacn £3OO and £6O-0. Exemption was granted for each child under the age of 18 years to the extent of £SO and there was also £oo •xomntion foe a wife. The exemption for a wife bad previously disappeared be■■een. £GOO and £BOO. There was now absolute exemption for everybody up to r V>!O. and in addition to that, there was on allowance of £SO for a wife or housekeeper. Ai r . IT. P. S. Ivvle (Nat,, Piccarton): TTnw many housekeepers are you allowed? AT". Nash : Onlv one. EFFECTS OF INCOME TAX The Minister went, on to explain that a married man with a wife and two children and with an income of £3OO paid no fax. With an income, of £4OO, such £ nan previously paid £2- 13s lOd ; now ho ivould pay £3 Bs, an increase of 14s 2d. [To did not think that would worry him ■.■ hen he remembered that old age pensioners would receive £1 a week and later ,J 2s 6d. With an income of £SOO, bo would pay £4 17s 6d more than last year nnd with'£6oo he would pay £(i 16s 3d more. The point, however, was not what i man paid. but. what he has left after be had paid his tax. lie pointed out that a man with an assessable income of £3OO paid no tax; a nan with an assessable income of £4OO. after paying his tax. had HTT> 1? s W< nnd, with an income of £6OO, he bad G r >77 12s left. A man with en incoim of*£PCo would have £755 5s 4d left: with 01 iie would have £929 12s left and vvit-li £so'"O he would have £3970 left, he had nothing to worry about. The man with an income of £SOOO paid £214 more than he paid last year, so lie would not say his lax bad not been raised, and with an income of £IO.OOO he would pay nractienllv £IOOO more,'but would still have more than £6OOO left, and the average man could manage on that, MV. O A. Wilkinson (Nat.. Egmonl) said that if a man had £IO,OOO invested p(, 4 per cent he would have to pay £4 8s in income tax, but if lie put the same

nmoiml in land he would have to pay nearly £4OO.

The Minister: ITc would not have to pnv £4OO. Mr. Wilkinson: Yes, lie would. ITc would have to pay land lax of £.140 and taxes to local bodv as well. The taxing proposals would drive money to investments.

Mr. Cnn.tes said the graduated land (ax was nothing more nor less than confiscation.

At 10 o'clock the Prime Minister moved the closure and this was carried by 36 voles to 1.0.

The short title was also challenged, but was passed by 3G votes to 10. and progress was reported and the House rose.