FINANCIAL DEBATE.

Star (Christchurch), Issue 12081, 9 August 1917, Page 2

FINANCIAL DEBATE.

BUDGET PROPOSALS DISCUSSED i DEBATE CONTINUED. rP?ft Prkss Association. 1 WELLINGTON, August 8. In the House of Representatives this evening, tho debate on the Budget was continued by Mr Anstey, who complimented the Government on the boldness of the proposals disclosed in tho Statement. They were just such proposals as tho country was looking for, and it would have been surprised and disappointed if they had not been brought down. He, however, felt bound to complain of the lack of cleayness with which some of the proposals were sett out. Want of clearness to a great extent was responsible for tho failure of the profits tax, because tho rcturna wcro so complicated that many were unable to say what their profits were. He agreed entirely with the proposed increase of old a.g e pensions, but thought tho suggested amount insufficient, and not adequate to meet war conditions. The abolition of the profits tax was an excellent feature of tho Budget, the anomalies and injustices being so manyj while tho proposal to enhance soldiers pensions met with his warmest approval. Ho condemned the combination of land tax and graduated land tax. Thoy wero entirely distinct in their nature, and tho intention and attempt to combine thom would lead to an endless [:rop of anomalies. He likewise regretted to see the attempt to raise so large a part of tho revenue from income tax, and favoured an attempt being made- to recover pure war profits by means of a prico tax. In this way wool alone would produce £850,000 per annum, whilo from all sources at least two millions would be raised cheaper and with less injustice than most forms of taxation. The tax on tea ho strongly condemned as being excessively heavy comparrd with the new impost, on beer and spirits, while other luxuries might be made to contribute much more substantially to tho revenue. The motor-car was not a luxury, but be favoured a tax on tvres, to be handed to local bodies to repair roads. The proposal to set aside two millions to employ returned soldiers on public works would prove advantageous both to tho men and the country, hut ho saw great difficulty in getting land on which to settle the .soldiers, unless some drastic system of err.dualed lanrl tax were formulated to burst up big estates, to force sufficient land upon the market, otherwise tTie toheme would fail for want of suitable areas. "While he was prepared to give the Government every credit for the boldness of tho proposals, he thought many subjects had not received the sustained consideration and radical treatment those subjects deserved and tho public expected, but he believed some of the taxation proposal now foreshadowed ware the begimitng of the sacrifices necessary to remind us that a great war was going on. Mr Pearce saw much good in the Budget, particularly the proposals to treat our soldiers and old age pensioners well. He had no faith in nostrums to keep down the cost of living, preferring to give pensioners sufficient to meet tho increased charges they were called upon to incur. The proposed Civil Service bonus was on a different footing. Only those whose salaries were not over £2OO should receive it. He agreed with most of the taxation proposals outlined in the Budget, even the tax on tea meeting with approval, on tho ground that the taxation proposed was small in comparison with that levied in England. If men wore asked to make sacrifices on beer, spirits and tobacco, he thought the ladies should make some sacrifice on tea, and he believed they were prepared to do it. He, however, saw many injustices to small farmers under tho land and income taxes as proposed, mortgages being taxed thereunder, which was fair enough if they were seeking to burst up big estates, but for ordinary war purposes it was most unfair to the small man. Under this system there was dual taxation, borrower and lender being taxed on the same money. This was the great blot on the Budget. The Hon D. Buddo said he did not like dual taxation more than the member for Patea, but ho saw no way out of it. Tho demands on the country were great and the necessities of the position must be met. The proposals of the Budget were not. sensational, except in the totals involved, but it should not go off the beaten track, and its methods of levying taxation were not more inequitable" than almost every tax is in its incidence. Ono thing he believed it would do, and that ivas to stop the aggregation of land, which had been going on to a greater extent than was generally supposed. Taxation on bachelors (not spinsters) and motor-cars was advocated, the latter being at first applied to war purposes, and later on handed to local bodies to supplement their revenue. Organisation and mor P land wero needed to complete the scheme for settling soldiers. To relieve a large body of useful men for war purposes, he suggested disbanding the Territorial'organisation, which was useful enough in a way, but our whole business should bo for the moment getting men into camps.

.Mr Hunter congratulated the Ministor on the magnificent surplus, but said that it was only possible owing to excessive taxation imposed on the people. In that light tho position was not so satisfactory. In this connection he urged that consideration should he shown to those who had largely sub scribed to patriotic funds when the compulsory "payments to the new loan were being enforced, for the reason that at the time of the flotation of the loan they having given largely and freely to local funds, were not in a position to take nn war bonds. The amusement tax should be doubled, and some additional taxation should bp put on motor-cai-3. The practice of pnvm Government servants war bonuses was to he commended as an example to private employers. He, however, found grnvo fault with the inadequate taxation placed on boor compared with the amount' extracted from "the people by way of income tax. Brewing w:>- ; -■ * of_ the wealthiest industries in the Dominion, employing less labour than many not so favourably treated, so that when brewers went down on their knees at night they had every reason to say—- " Praise God from whom all blessings flow, Praise Massey, Allen, Ward and' Co." The debate was adjourned ou tho motion of Mr Veiteh.