PUBLIC FINANCES.

Star (Christchurch), Issue 16411, 27 April 1921, Page 6

PUBLIC FINANCES.

ACTING-PRIME MINISTER CHALLENGED. Speaking at a reception tendered to Messrs J. Cain, M.P., and W. Slater, M.P., Labour members in the Victorian Legislature*, who are visiting the Dominion, Mr J. M’Combs, member for Lyttelton, said that the New Zealand Government by its immigration policy had not only considerably accentuated the housing problem, but had helped to create an unemployment problem. A large number of immigrants were among the unemployed, and already there were some very distressing cases. There were 200 returned soldiers out of work in Wellington, and the Returned Soldiers’ Association had taken up the case of a returned soldier, married, who had to leave his job on the railway to make room for an unmarried immigrant. Why, under these circumstances, the Government should be daily adding to the difficulty by putting men off the public works passed comprehension. There were hydro-electric undertakings awaiting development and completion, which when completed would give a tremendous impetus to both the primary and the secondary industries in tho Dominion, and hydro-electric development would give employment; in the meantime there were roads and bridges and railways whose completion was delayed during the war period; there was the completion of the Hilev scheme in connection with the Lyttef-ton-Christchurch line, new railway stations required at Lyttelton and Christchurch ; the duplication of the Lyttelton tunnel, and the electrification of the line—to say nothing of the works which required completion at Palmerston, Wellington and Auckland. The reason why the works that were in hand were being stopped and others that might bo put in hand were postponed, was alleged to he a shortness of money ; yet he ventured the prediction that when the Government- chose to publish a financial statement for the year which closed on March 31, it would be found that there was a surplus of £5.000,000 and over of money actually collected. To keep men idle when they might he profitably employed was almost as disastrous for a country as war. A thousand men profitably employed in development works gave employment to a thousand more in the factories, shops and offices supplying the goods and services which these men wo'aid be able to pay for. The policy being pursued by the Government was detrimental to the best interests of the country and ro every section of the communitv.

If what he said regarding the existence of a £5,(XX).000 surplus was questioned, he challenged the Acting-Prime Minister to publish the actual figures. He had the figures for eleven months, but as most of the income tax only came in during the last month, he could only make an estimate for the year. He knew, however, that the Prime Minister recently wont into the Patea electorate and stated that the finances of tile Dominion were bo satisfactory that he proposed to make a remission in taxation to tho extent of £700.000 Income tax was to be absolutely remitted for the farmer, and land tax for the business man. This differed from tho Prime Minister’s proposal in Parliament during the short session, which was a 10 per cent remission of tax for all income, tax payers. Those who woald specially benefit by the Prime Minister’s latest proposal would be farmers with an income of £IOOO a year and over; the small farmer and struggling settler would not be benefited, because under the existing law there was an absolute exemption from income tax for all income up to £3OO a year besides £SO a >ear for each dependent child under eighteen years of age, £SO for life insurance premiums, and up to £IOO for annuity payments; and on top of all this, the land owner had an exemption of income up to 5 per cent on the capital value of his property. Those who would benefit most would he big land owners with incomes of £IO,OOO a year and over after all exemptions are allowed for, because only such had to pay the maximum tax of 8e 9d in the £. Mr Massey’s latest proposal would mean a saving in taxation of £4375 a year for the big land owner with a taxable income of £IO,OOO a year. Evidently those who provided the political party funds for the Tories in this country were to receive their reward.

If the Government could contemplate making a present of £700.000 to the already wealthy, it could find money to go on with the public works of the Dominion, including tho Hiley scheme. Anyhow, he challenged the Government to prove him wrong in regard to his allegation that there must be at least £5,000,000 of a surplus for the financial year just closed. Why under these circumstances the Government was putting men off and depressing trade in the Dominion it was difficult to surmise, unless it was part and parcel of a concerted action to force down the rate of wages all round and then find employment for those whom it had forced out of employment. In addition to finding remunerative work itself, the Government could find money for local bodies to do work which was waiting to be done.