THE BUDGET.

Star (Christchurch), Issue 11731, 22 June 1916, Page 5

THE BUDGET.

CRITICISM BY MR WILFORD. INTENSE DISAPPOINTMENT EXPRESSED. Mr T. M. Wilford, in the course of an interview prior to his departure from Wellington, said:— 7 "I must confess to a feeling of intense disappointment. The first thing that strikes me is the entire absence of any suggestion to cheapen the <?ost to the people of our own products. Butter, cheese, meat and milk, which we produce iu plenty, and which have reached quite abnormal prices, have apparently been forgotten, unless tho incidental reference to tho Board of Trade may be deemed to be a move in that direction. I have never heard any complaints of the greatly increased cost of imported articles, and it seempd a work of supererogation, to suggest that no duties had been placed on tapioca, etc. " The limitation of rent proposals is crude, and in mv opinion ontirely unworkable, a.nd it will bo neccssa ry for the Government to adopi an entirely different method of procedure if limitation is to be effected, and at tho same timo fair. To give an example: A small house has been unlet prior td the war for six months. It is rented afc its last letting at 10s a weok. It has been necessary to spend *£so on it to get a tenant. Would it be fair that tho rent of that cottage should be the same as before the war? Again, supposing a man has purchased a, property since the outbreak of war. and has paid part cash, the balance owing by him in the form of a mortgage bearing increased interest. Supposing the purchaser calculated when he purchased upon receiving a rent equal to 6 per cent on his purchase money, and that rent exceeds the rent received by the former owner. What is he to doP I consider my Bill on the subject preferable to-{he Government plan. " In regard to war profits, the 45 per cent, in my opinion, is far too low, for I believe that all profits made out of a nation's struggle for existence and in the time of its dire necessity are, as Mr M'Hardy aptly called them, illgotten gains! If I had my way, I should place at least a tax of 75 per cent on war profits instead of 45, believing that any man who makes even 50 per cent war profits in tho time of a nation's trial is exacting a toll from his fellow-man which is unholy. " I congratulate the National Government on its increase in the income tax, and am sure all will cheerfully pay the 5 per cent additional, though it is questionable whether even that rate is high enough. The investment of £3,325,000 as a reserve in Treasury bills at Homo I believe to be an excellent move, and 'if tho war lasts much longer I hope to see the same procedure adopted/ in the future. I alsoj consider tho proposal iii reference to income ' earned elsewhere' as just and equitable. " I think the fact of the girls at Petono oeasing work to obtain a 10 pea* cent increase on a paltry wage might well have been left out of tho Budget. " With reference to tho Avar boards, I approve of the principle, but consider that they should provide an optional currency''at 10, 15, 20 or 25 years and also suggest that legislation should be introduced to allow all Government bonds and debentures taken up during the war to be accepted by tho State in payment of death duties. "In regard to money in the Dominion, it is well known that capital is ' shy,' and seeks fields where the highest interest can bo obtained with absolute security. It has been found necessary in one of the countries concerned in the war to pass special legislation to prevent liquid assets in the form of deposits in banks and other financial institutions being shifted to other countries whore higher interest is obtainable, and there are fewer restrictions as to investment. "I consider that the price of cheese for the Imperial Government should be fixed free of storage rates. " regard to the cost of living problem the Budget tells us that the matter has received a great deal of j attention from the Government with a ' view to preventing high prices being charged to the people for their food supplies. I cannot question that statement, but I do say that the practical result of the attention, especially with j local products, is negligible and en- J tirely unconvincing. I had hoped that tho Budget would havo produced some suggestion by which the phenomenal increase in the prices of foodstuffs produced in New Zealand could be reduced or controlled. There is no check on the middleman exploiting tho public except the Board of Trade, which is only authorised to make reports which doubtless will in due conrso be shelved. The unfortunate position is that no private member has any power to move the alteration of any taxation proposals."—" Now Zealand Times."