MR STEWART PAINTS ALLURING PICTURE.

Star (Christchurch), Issue 18548, 23 August 1928, Page 6

MR STEWART PAINTS ALLURING PICTURE.

SAYS SOCIALISM WOULD MEAN TAXLESS LAND.

(Special to the “ Star.*’) j WELLINGTON, August 22. j When the Prime Minister spoke dtir- \ in S the financial debate he drew an ; attractive picture of future revenue from hydro-electric undertakings which could help the taxpayers to the ] extent of many millions annually if j the present charges were maintained. i His theme was amplified to-day by the Minister of Finance, who pictured a tax-free community some day if a particular policy is adopted in regard to State enterpriser though he showed some doubt whether the consumer would not demand prompt shares in dividends by way of reduced charges. Mr Stewart pojnted out that when his leader referred to large prospective profits a member asked if charges would be reduced, and that was the whole point. The original Socialists advocated State ownership and pointed to the enormous profits private individuals were making, claiming with some show of reason that if the State took over' these enterprises it would secure the profits, thus enabling the Government to reduce and ultimately abolish taxation, the community being able to pay its way from profits, and that social services would be greatly amplified. But if the policy was adopted that the actual consumer was entitled to all possible advantage then this attractive principle must be abandoned. If the original socialistic principle was observed with all our State enterprises Mr Stewart pointed out that immense profits would be reaped, and there was no end of financial possibilities assuming the profits were up to predictions. HOW TO PAY THE NATIONAL DEBT. If one took the moderate view that the consumers were entitled to half the profits even then, in one generation, there would be sufficient revenue to pay off the non-productive debt of the Dominion, reduce taxation and greatly increase our social services. This would mean, of course, that for some years we would adopt a somewhat Spartan regime in our financial policy, with the public foregoing a substantial reduction in charges. However it would put New Zealand in a splendid position. Mr Sullivan: Would that not place an undue burden on one section ? The Minister replied by referring his questioner to the experience of Dunedin, which owned its hydro-electric service and sold power cheaper than elsewhere. Personally he did not see why all the benefit should go to the consumer, because the taxpayer, who found the capital, should get some of it. He had been told by the head of the Postal Department that if he was allowed to charge New Zealanders the telephone rates payable to private enterprise in America for a few years the Department could do great extension work, reduce its capital liability and put it in a position in which the country would have an enormous asset. However, Mr Stewart concluded, he recognised that the user wanted the whole of the benefit, though there was room for an intermediate policy which would produce gratifying results in the future, but it seemed to be out of the range of practical politics.