BUDGET DEBATE

Timaru Herald, Volume CXLIII, Issue 20851, 6 October 1937, Page 11

BUDGET DEBATE

TAXATION UNDER REVIEW

PARTY OPINIONS

By Telegraph-Press Association WELLINGTON, October 5.

The debate on the Budget was continued in the. House to-day by Mr Hoiyoake (Nat., Matueka), who said that no thought for the future was contained in the Budget, and the restoration of the wages of Public Servants had been completely cancelled by the increased cost of living. In fact, they were very much worse off to-day than they had been in the past. He criticised the Government for the creation of four new departmens and the employment of 5000 additional Government servants. Taxation, he said, could not bring prosperity to any country, and he contended that this Dominion was being taxed up to the full capacity of the people to pay. Past Governments had been criticised by Labour for indirect taxation, but he drew attention to the fact that the present Budget showed an increase of more than £3,000,000 in Customs duties. What was that but indirect taxation?

When Mr Holyoake’s time limit was approaching, Mr A. C. A. Sexton (Country Party, Franklin) moved that his time be extended, but Mr McDougall (Ind., Mataura) objected, and Mr Hoiyoake was required to conclude in the allotted time. He was thanking Mr Sexton for his motion when Mr McDougall interjected, “I was only joking.” Mr Hoiyoake: I think it is beneath the dignity of most of the members of this House to refer to the actions of the Member for Mataura.

Mr J. B. Cotterill (Lab., Wanganui) said the Government agreed with the Opposition that the sales tax was indefensible, and there were a lot of things in connection with taxation with which the Government did not agree. However, they would be dealt with when the time arrived to do so. Every member of the Opposition had criticised the Government’s taxation measures, but which of them would they eliminate? The Government was still awaiting an answer to that question. The Opposition wanted to reduce the taxation yield and lay aside something for the future, but it also wanted to maintain social services and civil servants’ wages at the same level as to-day. He contended that there was a clear cut issue to-day between the Government’s progressive policy and the reactionary policy of the Opposition.

The Sales Tax

Mr Sexton said it seemed to him that the only criticism which could be levelled at the Budget was that it was on orthodox lines. He urged theh elimination of the sales tax and asked why the Government did not draw credits from the Reserve Bank to balance the funds lost through the withdrawal of such tax. A considerable amount had been withdrawn from the Reserve Bank for the dairy industry account and no wild inflation had occurred, so why not take sufficient funds from the Reserve Bank to offset the removal of the sales tax? He deprecated the lack in the Budget of further provision for children’s allowances, and stated that people were becoming alarmed at the fall in the birthrate. If we did not face the position and make adequate provision for people to rear families, we would soon find ourselves with a rapidly decreasing population. Mr Serton contended that the guaranteed price had not placed the farmer on the same basis as those engaged in other industries. The dairy farmer was on piecework for the Government. This was opposed to Labour policy, as they did not favour piecework.