EXTRA WAGE TAX

Taranaki Daily News, 14 April 1932, Page 7

EXTRA WAGE TAX

PROPOSAL IN PARLIAMENT PLAN TO AVOID PENSIONS CUT COALITION MAN’S SCHEME o DEBATE ON REDUCTION BILL DECLINE IN COST OF LIVING A, wages tax of 3d so that pensions tieed'not be cut and Civil Service salaries need be cut only half the proposed amounts was suggested by Mr. D. McDougall, a Coalition member, during the debate on the second reading of the National Expenditure Adjustment Bill In the House of Representatives yesterday. Much reference was made to pensions but generally arguments were similar to those advanced the previous day. A statement by a Coalition member that the cost of living had fallen 19 per cent, was challenged by Labour, it being asserted that the cost had fallen only 7 per cent. In 1930-31. I By Telegraph.—Press Association. Wellington, Last Night. The debate on the second reading of the Rational Expenditure Adjustment Bill was bontinued in the House of Representatives this afternoon. There was reason for .gratification, said Mr. P. A. de la Perrelle (Co., Awarua), that • genuine attempt was being made to meet the present critical economic situation. The proposals in the Bill were unpalatable to everyone but they were necessary for a restoration of the .country’s position. , It had been stated that the Labour Party had no monopoly of sympathy for the worker, said Mr. E. J. Howard (Lab., Christchurch South), but sympathy was not ■, much good unless it was translated into legislation. There was not a member of the Government with a message of hope for the people. Mr. H. McL. Campbell (C 0. Hawke’s Bay) said the State had been going in for enterprises in competition with private individuals far too much and' the harmful effects of this policy were now being felt. The State had piled up expenditure on its departments and the taxpayers had to bear the burden of increasing costs to enable cheap, services to be given. The people had received the full benefit from the expenditure on State departments, said Mr. F. Langstone (Lab., Waimarino). The institution of the State Fire Office had resulted in insurance premiums on dwellings being reduced by one-third. Private enterprise on the other hand had broken down. The numbers of unemployed to-day constituted a standing indictment of this system. "COST OF LIVING DOWN FIFTH." Mr. C. H. Clinkard (Co., Rotorua) justified the cuts in the Civil Service and stated the Government Statistician’s figures showed & reduction of. 19 per cent, had been effected in the cost of living. Mr. P. Fraser challenged this statement. He declared Mr. Clinkard had confused the index figures with percentages. Mr. Fraser declared that from 1930 to 1931 there had been & reduction of only seven per cent in the cost of living. The reduction being made in pensions, said Mr. A. D. McLeod (Co., Wairarapa), was not greater than the reduction which had taken place in the cost of living. Mr. J. O’Brien (Lab., Westland) strongly attacked the . proposal to reduce pensions. He asserted that had the Government’s intention in this respect been made known at the time of the elections no Government member would have been returned. If the Labour Party, said Mr. R. A. Wright (Co., Wellington Suburbs) could produce an alternative scheme which would solve the country’s difficulties and at the same time involve less sacrifice by all sections of the community, he had no doubt it would be supported by the majority of members of the House. There did not seem, however, to be a sound alternative scheme advanced from the Opposition benches. "MILESTONE ON ROAD TO CHAOS.” Mr. R. Semple (Lab., Wellington East) eaid the Bill represented another milestone on the road to chads and destruction which was being followed by the present Government. He condemned the reduction of pensions. Pensions were being reduced, he declared, to pay interest to overseas bondholders. The interests of the bondholders were being, placed before those of New Zealand’s own people, many of whom were facing starvation. Mr. D. McDougall (Coalition, Mata•■nra) said they should reduce the proposed Civil Service cuts by half and make cute of *24, 5 and 61 per cent. They Should withdraw the pension cuts altogether. This would mean a loss on the t Civil Service savings of £400,000 and on the pension reductions of £300,000. He suggested that to offset this there should, he an additional wages tax. of Bd, which would realise £BOO,OOO, leaving 'a surplus of £lOO,OOO over the proposed saving under the Bill. Mr. W. J. Jordan (Labour, Manukau) •submitted that if a living wage could not be paid to workers in New Zealand the country could not afford to pay more than £lOOO a year to anybody in salary or £3OO a year in superannuation. The Minister of Labour (the Hon. A. Hamilton) denied the statement that the Government had not told the country ■what its plans would be. He questioned the wisdom of attempting to maintain a high standard of living and said.it was not surprising that Britain, which was on a lower standard, was unwilling io lend money to the Dominion. The debate was adjourned when 'the House rose at 11.30 p.m. until to-mor-row afternoon.