FARMERS AND TAXES

Taranaki Daily News, 3 December 1930, Page 8

FARMERS AND TAXES

USE OF RAILWAYS URGED. NEED TO BALANCE BUDGET. • “We farmers are to 1 blame to a large extent for .the position of the railways,” was the candid admission of Mr. D. B. Higgins a Matamata farmer who was a member of a deputation which waited upon . Cabinet Ministers at Wellington on Tuesday.’ * . ; There was a general feeling, said Mr. Higgins, that it was possible for the farmers to have made the railways pay, but they had taken the traffic from the railways. Mr. Sterling had met them to discuss the matter, and they, were going to ask all farmers in their district to put' their freight on the rails. If they showed a little consideration and supported the railways they would soon put some of, the American lorries off the roads and would enable the railways to work at fuller capacity. This. move, could be encouraged by the derating of lands, so that the people who used the roads should pay the . full cost. The Government should cub out the unpayable lines- and stand by the main lines, but there, must be derating of lands, so that the motorists would havo to pay. The farmers were prepared to pay 5d a gallon for the amount of petrol they used. This country had gone “petrol mad,” and thse who used it should pay for -it. a The Hon. R. Masters pointed out that the Prime Minister, in preparing his Budget,, was faced with a deficit .of £3,000,000, owing to the fall in Customs duties and income tax’ and the loss on the railways of £1,230,000. There were pensions and other fixed charges amountto about £400,000. The financial outlook was not particularly bright at the moment. Probably the Customs revenue this year would decline in value by more than the £300,000 first anticipated. It was essential that they should balance the Budget, or they would land in the very unhappy position ! in which Austra-. lia was to-day. ' . , . The Government had made sincere attempts at economy, more than the pub-.

lie realised. It had tried to keep taxation off the farmer and- to place it on the luxuries of the people. The Minister reminded Mr. Higgins that when the 3d tax on petrol was proposed it was opposed by the motorists and d. large proportion of the farmers. Yet it was a definite attempt to start out on a system of derating the land. Mr. P. Hawkins: You made no promise that the rate would be reduced.

.The Minister replied that in rates was expected to follow, was clearly the intention. w~. nvsnC p Mr. Hawkins: It did not convince the deputation said it "« hoped it would be possible to make concessions on certain freights on .the railways for unless the Government kept them going with fertilisers, the farms . wduld°go back., ' .' 1 : L