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TAXATION ADJUSTMENTS

Government’s Revenue Needs

TIGHTENING UP IN EXPENDITURE No More Short Railways to be Built Press Association HAWEKA, Saturday. TAXATION adjustment to secure more revenue, and a determination to build only those railway lines linking up long distances that it is believed will pay interest on capital, are to be the guiding points in the policy of the United Government. This was indicated by the Prime Minister, Sir Joseph Ward, in an address here this evening, when acknowledging a civic reception attended by about 1,000 people. Sir Joseph attributes the £500,000 deficit to losses upon short railway lines, and takes it as a warning that more revenue must be found and expenditure tightened up.

After acknowledging the welcome, expressed by tile Mayor, Mr. E. A. Pacey, and others, the Prime Minister proceeded to discuss political questions, paying particular attention to the Budget and railways.

He referred to the recent announcement that the revenue for the year just ended would be about £550,000 short of the amount required to balance the account. “That is not sufficiently large to cause any serious alarm regarding property or business,” said the Prime Minister, “but it is big enough to indicate that the conditions giving rise to it cannot be allowed to continue. I hope to be able to place betore Parliament in the coming session proposals which will bring about the remedy.” There would have to be an adjustment of taxation, it being essential to secure more revenue than had formerly accrued from certain quarters. No country could claim it was in a satisfactory condition when the financial balance was on the wrong side, and an adjustment of the Dominion’s finances was the mission on which he was at present engaged. Customs taxation was between £300,000 and £400,000, and income tax between £60,000 and £70,000 short. As a primary producing country New Zealand was bound to look principally to the laud for its prosperity and in a small holdings settlement scheme, together with careful regulation of immigration, lay the solution of the unemployment problem. NO MORE SHORT RAILWAYS The Government had stated it would go ahead with work on long railways, but it would not consent to expenditure on short lengths, whiqh, he contended, could not hope to compete with motor services. On such lines as the Taranaki to Auckland, Napier to Gisborne, South island Main Trunk and Westport to Nelson, the Government was prepared to incur expenditure, as they would pay interest on the expenditure. Side by side with land settlement the Government wanted to complete the long-distance railways, but it would stop for ever short fragmentary lines, which were a burden on the country.

f Last year the losses on the ! smaller lines entailed £770,000. This was a direct charge against the Consolidated Fund and had been largely responsible for the Budget deficit. But for that charge there would not have been a deficit. During next session he proposed to ask Parliament to adjust the system of railway accounts, so as to do away with that system. STOPPING OF WORKS The stopping of the Palmerston North deviation was one direction in which the Government was endeavouring to check unnecessary expenditure, but that amount involved was trivial in comparison with the loss on small lines. The Palmerston deviation was stopped because the Government believed it was not wanted. The Government would also stop any other work concerning which a similar conviction was held. Also, he and his colleagues believed the RotoruaTaupo line should never have been started. The policy of the Government was that it would not undertake any railway work which would not return at least interest on the capital outlay. “Millions and millions and millions are being borrowed every year,” said Sir Joseph Ward. “Millions and millions and millions are being expended every year, and some of it is being thrown away every year. What we have to do now is to ask the members of Parliament to share with us the responsibility of focussing and limiting the expenditure of these millions that are not required, at the same time pushing the country on at a reasonable speed, yet keeping the safety valve on.” Referring to the 84 miles of line required to link the South Island Main Trunk railway to Picton, Sir Joseph Ward said it w*ould allow a saving of hours on through passages from the extremities of both islands, as a more direct connection would be afforded in crossing Cook Strait. He believed the completion of the line to Picton, with its facilities for through traffic, would prove in the best interests, of the country, just as through services between the principal centres in the North Island had been.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/SUNAK19290506.2.98

Bibliographic details

Sun (Auckland), Volume III, Issue 655, 6 May 1929, Page 10

Word Count
782

TAXATION ADJUSTMENTS Sun (Auckland), Volume III, Issue 655, 6 May 1929, Page 10

TAXATION ADJUSTMENTS Sun (Auckland), Volume III, Issue 655, 6 May 1929, Page 10

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