LABOUR’S ATTITUDE

Stratford Evening Post, Issue 8, 31 July 1930, Page 6

LABOUR’S ATTITUDE

APPROVAL AND DISAPPROVAL. WELLINGTON, July 30. The Budget debate was resumed in the House of Representatives this afternoon by the Lender of the Labour Party (Mr H. E. Holland), who said there were some phases of the Financial Statement with which his party was in agreement, and others with which it disagreed. Those with which it agreed it would support when the time came, while it would move against those with which it disagreed. Referring to the Opposition amendment, Mr Holland said that while there were some points in it in which the Labour Party was in favour, it could not consider supporting the amendment, which would put the Reform Party back to the Treasury Benches. While ■his party would not support a no'-eonfi-.deneo motion it did not follow that it was voting its confidence in the Government. It was merely declining to go from bad to worse. It was not going to exchange a cheque marked ‘ ‘ N.F.S, ’ ’ for a counterfeit note. Higher Income Tax Favoured. Dealing with the Budget, Mr Holland said the Labour Party was in favour of aii increased inconu tax, and he added that he himself would have gone further in that direction. Ho expressed approval of the proposal to amend taxation on landholders, and declared it would not affect the small farmer at ail.- The landholder who would be call- j ed on to pay the tax on his farming income would bo well able to bear it. Mr Holland would have favoured retention of the supertax ou land of an unimproved value exceeding £20,00u. Income taxation was undouotcdly tim most equitable form of raising revenue, uhd iti this respect the New Zealand system was not as scientific as it might lie, because higher incomes escaped a steeply graded tax which ought to reach them. Mr Holland suggested that a carefully prepared and more steeply graded income tax should be applied, not only to produce the same amount, but in fact a greater amount of revenue than was provided by income taxation at tnc present time. It would then bo possible to stop the present tendency to ask the rank and file to bear an inequitable burden. It might be argued that many of the large incomes were those oi companies, and he agreed that company taxation was unscientific. The country had to be prepared, however, for the time when individual taxation would be subjstituted for company taxation, and it might then be found that some of the present opponents of company taxation would be the strongest opponents of substitution. Other Increases Approved. i Mr Holland approved of the increase per cent., declaring that this was by no moans too much to ask the banks to pay for the country’s credit. He alik) commended the increase in the death duties in the higher ranges, but opposed the proposal to impose an amusement tax on cheaper tickets. The effect' of' the change was to increase the ■cost of amusements to the poorer people and to children, while four and live shillings tickets would not be subjected to any extra lax. if it were Miectmsfiry to obtain more money from amusements, the tax ou the more expensive seats should be increased.

iiaterring' to the customs increases, Mi Holland said that goods which were necessary and could not bo produced iji Now Zealand should bo admitted free of duty. Empire preference should be granted in the case of goods which cOUld bo produced in Britain, lie said that the increase in the duty on tobacco and cigarettes was heavy He regretted that the report of the So loci Committee on tobacco growing and manufacturing would not bo available before the Customs Amendment Bill'was. introduced. As matters stood .at present, it seemed that the local industry was going to suffer hs a result of increased excise duty on locally grown tobacco, while there was to be no increase in the duly on imported manufactured tobacco.

Concern ‘ for Railways. Mr Holland stated that nobody covhd read the Budget without feeling concerned about the railways. Facilities for motor transport had boon increased without any serious effort to cope with the problem of running motor and railway transport systems in co-ordination. Ho asked how a saving in railway expenditure whs to bo effected, and said he hoped it was not to be achieved by the dismissal of workers. Referring to the Royal Commission on railways, ho contended that the Government should have taken man from the rank and Jilo of the railway services wl uf would have

boon able, as member of tbo Commission, to give expert' advice*. In conclusion, lie stated that the Labour Party would vote the United Government out of office on the first opportunity, but not at the expense of returning the Reform Party to office. The Hon. W. A. Veitch said he admitted that the application of .the amusement tax was an unpleasant duty fo. the Government. It had been necessary to raise a large amount in additional taxation, and it would have was urgently needed, it was out of place to ask for a contribution i?< the form of amusement tax.

Dealing with the railways, the Minister said he had found it would be possible to remove most of the difficulties’ of those people who would be affected by the proposal to close down unpaying branch lines. As a result of deputations from persons concerned, a scheme was being evolved hi which a guarantee that there would be no loss iu respect to the operating cost of branch lines if services wore continued, would be the mail- feature. It would be possible for local bodies to give 'swell a guarantee, and the result would 'be that the railway lutes would receive itratispdrt business that had hitherto been given to motors. It was purely a matter of the persona concerned making the linos pay. They wQuld not be asked to guarantee capital costs, which the Government would have to bear, oven if the lines closed down, but they would be called < • to ensure that no loss on maintenance and on operating costs occurred. Railway Dismissals, With regard to the employment of railway men, Mr Veitch said he hoped that conditions, in Lie railway service would bo altered so that it would be possible to employ a larger average number of men throughout the year, in preference to engaging large numbers at rush, times and having to dismiss many of them later. The Minister quoted figures to show die efficiency of the ran way stall; at the present time He stated tsiat lust year for every man iu the service 1470 1 ousseiigers and 401 tons of merchandise iiiul been carried. During thojiist four years the average had been 148 S passengers and 401 tons of merchandise. Comparing this with the pre-war period, lie said tuo average per year, from 1000 to 1010, was 1254 passengers and 412 tons of merchandise per man. In answer to an interjection, the Minister stated: “Anyone who is acquainted with my record will know that I spent a lengthy period of my life in building up the conditions iu the railway service, arid 1 am not gelling to start now in the evening of my life to destroy that work.” Mr Veitch added that he greatly regretted that the shortage oi money had necessitated the dismissal of a number of employees, but he gave au assurance that lie would do everything in his ’power for the workers in the railway service.

Mr Vcitch stated that motor trans- ] port had not interfered with the railways to the extent that was popularly > imagined. Actually it had prevented the railways from expanding to the ex tent that had been anticipated, and if | the railways were kept down to those / services that were in existence before motor competition had been introduced, it would be found that the losses could bo 'considerably decreased. The difficulties of the present day had largely been accentuated by the construction of branch lines where they were not necessary. No Breach of Faith. Replying to criticism that there had been a breach of faith in regard to the highways fund, the Minister said that as long*as the Government did not take from Hie Highways Board the proceeds of the original tax of 4d on petrol, the bargain made by MrCoat.es would have lieeii maintained. There had been no agreement bearing on any additional taxation that might be imposed on petrol. It had been necessary to obtain finances for reading, arid the Government had chosen the most equitable method 0 f raising it. Motorists wore users'of the roads. It was not desired to over-burden the country ratepayers. Mr Poison: Half the tax will be paid bv country ratepayers who are motorists. Mr Veitch replied that half the cost of maintaining back-block roads would be borne by city motorists. He repeated that the tax on petrol was the fairest method of raising money Mr A. 0. A use! I declared that the extra petrol tax would be used for geneI ml purposes, it was not a luxury and would affect a large number.of people \ who could not afford to pay It was me : just that such a heavy burden should I'be placed on motorists, in addition to (the oordiuary taxation which they already paid in various ways A very j j ;1 rgo portion of the lax would be paid by city dwellers who would receive no benefit whatever Not only was the cost of petrol to bo increased, but the prices of ca-s themselves, and also of lubricating oils, would be raised It was inevitable that the proprietors of buses would pass these charges on, arm tho working people would have to pay more in flues