EXTRA TAXES

Timaru Herald, Volume CXLVIII, Issue 21576, 12 February 1940, Page 6

EXTRA TAXES

None Contemplated At

Present

Finance Minister Answers Questions

By Telegraph—Press Association AUCKLAND, February 11

A statement that no extra taxes were contemplated by the Government for the present financial year was made by the Minister of Finance, the Hon. W. Nash, when asked what the reduction of revenue would be caused by petrol rationing. Mr Nash added that the next financial year's Budget was not yet completed. Mr Nash, who arrived last night from a brief tour of the north after the Waitangi celebrations, answered a number of questions about the effect of the Government's actions taken as a result of New Zealand’s participation in the Empire war effort. Asked to what extent petrol rationing would offset the revenue expected from the extra fourpence tax imposed by the last Budget as a defence tax, he said that 30 per cent, was the estimated percentage of the curtaill ment in the use of petrol, but the sum of this percentage at fourpence a gallon was not yet known. He was also asked whether the prohibition of the importation of American motor cars and the limitation of English models to a small percentage of last year’s figures would cause unemployment in the Hutt motor assembly plants. Mr Nash said that if the Dominion imported parts for only 30 per cent, of the cars previously imported, it was unlikely that the same number of men would be employed, but there should be alternative employment available. Social Security In reply to a question whether the Social Security Act provision for beginning universal superannuation on April 1 ■would be effective in view of the extra expenditure entailed by the war measures, Mr Nash said that any interference with the Social Security Act had not been considered. The estimated cost of universal superannuation during next year was not yet available. Speaking of the Government’s negotiations with Britain for the sale of primary produce, Mr Nash said they were practically completed, but may be extended at any time desired by the United Kingdom Government. A summary of the whole position would be announced this week, but since the new purchase procedure was started until January 22 the sum debited to the United Kingdom Government on account of purchases from the Dominion Government was £12,459,000. Mr Nash was also asked if he had any reply to the statement of Mr W. W. Mulholland, president of the Farmers’ Union, that the Minister had broken a definite promise by introducing the State purchase of hides. Mr Mulholland, stated that Mr Nash promised that anything not requisitioned by Great Britain would be left a free market. Mr Nash said that he intended to make a full reply later in the week.