WAR BUDGET.

Star (Christchurch), Issue 11730, 21 June 1916, Page 5

WAR BUDGET.

HON J. T. PAUL'S VIEWS. Criticising the war Budget in the course of a conversation with a " Post " reporter, the Hon J. T. Paul, M.L.C., remarked:—"From a Labour point of view some of this second war Budget is good—some of it is otherwise. Can- V didly, I do not like the submissive tone of the Budget on the cost of living. The explanation 'of the Government's comparative inaction with regard to our imported goods is the high shipping freights, and in this connection the Government declares itself powerloss to effect a remedy. It would bo interesting to know whether any representations have been made to the Imperial Government with a view to regulating shipping freights within the Empire. Sir George Paist, editor of the ' Statist,' declares thai the shipowners have imposed a tax of £300,000,000 on the British people since the beginning of the war. It ought not to be beyond the wit of the Empire's statesmen to end that scandal. The excuse given for the high . price of our primary products on the local market is interesting. The Budget says:—' As prices are fixed by the law of supply and demand in all parts of the world, it seems apparent that only the lowering of values in the outside world can effectively bring about a reduction of prices in Now Zealand.' There are. especially in war time, when our nation" zs engaged in the fight for national existence, very decided- limitations to this doctrine.. We have fixed the price of meat —for. the British market. Wo hnvo fixed the price of a large amount of our cheese—for the British market. I suggest that it would be wise statesmanship to take such steps, however drastic, as would secure o our own people the necessaries of life produced in our own country at their economic cost of production. I would ask 110 man to accept a price which would mean a loss on his productive cost, but I would ask all men to realise that our nation is at and that if prices are ] nllowed to rise, then wap.es must be. | forced up, and we have takui the first , step on the road to industrial d'ificulty j and economic chaos. "With lespect to taxing war piviits, I prefer to await the taxing Bills before xpression an |rpinion. I have been long enough in politics to learn that there are often subs:annal_ discrepancies between the promise of Budget and the performance of +ho Bills"giving effect to Budget ty'oposals. I wish to sound this note-of warning in connection with the war profit tar Parliament must be careful to so curb the power of monopolies that they can- j not pass any proportion of the war ! profits tax on to the consumers in further increased prices. Indeed, as a I matter of abstract right, it is decidedly questionable whether any true patriot j is justified in making war profits which I define as excess or abnormal profit above fair return for capital and ability—during antj because of _ his nation's hour of national tribulation."