“TIMES DEMAND THAT WE HELP.”

Star (Christchurch), Volume XLIV, Issue 185, 6 August 1931, Page 7

“TIMES DEMAND THAT WE HELP.”

MR COATES OUTLINES REFORM’S BUDGET STAND. (Special to the “ Star.”) WELLINGTON, August 5. “ We believe the times demand that we should help rather than burden,” declared the Leader of the Opposition (the Rt Hon J. G. Coates), in defining the Reform Party’s attitude to the Budget proposals in the House of Representatives to-night. He made the qualification that the Government is expected to reconsider its proposals relative to income tax and the imposition of primage duty. Mr Coates recalled that as a result of the Reform conference in January last a statement was issued forecasting that a serious position was ahead of the country if appropriate steps were not taken to meet it. During the brief session he had announced that the Opposition would help rather than hinder in the work of reconstruction. “I think I am justified in saying,” he added, “ that the Reform Party will still maintain that attitude on this occasion —we believe the times demand that we should help rather than burden. The Opposition does not intend, however, to hamper in any way its latitude or freedom to explore all avenues and, wherever possible, to make suggestions for economies and proposals likely to assist the country during the present circumstances.” (Hear, hear.) No Adverse Motion. He wished to direct the Prime Minister's attention to some important features of the Budget. ‘‘lt is not my intention,” he continued, “ move an adverse resolution, but in adopting that course I wish to say there are one or two matters, very wide and important matters, on which the Opposition must reserve its right to explore every alternative before the Government can really say their proposals are acceptable.” He was not saying this in any feeling of antagonism or opposition. In the taxing Bills which the Government would bring down were proposals in regard to which the Opposition would explore every avenue for the purpose either of searching economies which would prevent harshness of taxation, or to point out where economies could be effected to lessen the full weight of the proposed taxation. Another point which the Opposition advocated was that there should be an effort to relieve costs and prevent them creeping up. One feature of the Budget would cause an unnecessary increase in costs, though the amount received would be small compared with the effect on those paying the increased tax. The country was fortunate that in past years there had been Governments with sufficient foresight to build up reserves, which during the period of depression, were of great advantage.” It was a fortunate fact that we had those reserves to call upon in time of need. Balanced Budget Principle. He was not under-estimating the difficult position of the country. The Government had brought down a balanced Budget, a principle which the Reform party had consistently supported. By reaching that goal the country’s credit and its citizenship would be the higher thought of Until the primary industries were restored to a sound basis balancing the Budget would com tinue to be difficult, and the country; looked to the Government to assist in restoring stability to those industries Expenditure had to be adjusted in accordance with the changed level of prices received for exportable products. Mr Coates predicted that unless* an improvement was shown in revenue.the

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Government in office next year would have even greater difficulty in balancing its Budget, and in that event more, economies would have to be looked for. In his view there was room for still more economies to be practised in the departments. Reduced Surtax Suggested. Dealing with the taxation proposals Mr Coates said that 30 per cent surtax and lowering the general exemption placed on the lower incomes what Reform considered to be an extraordinarily heavy impost. ‘‘lt hits the family man much sooner and much harder than it did previously,” he added, “and when he takes wages tax and unemployment levy into account it is found that his costs have been enormously increased. In many cases it will be found that the charges of these men are fixed i either by interest or mortgages or rent, as the case may be. If it were possible to reduce the income tax surtax it would probably prove to be a greater factor in bringing about a revival of confidence in the country and progress in industry that anything else. I believe it would be in the interests of the country if the Prime Minister could reduce the 30 per cent surtax on those incomes and leave the exemption at £3OO. If the increase would be reduced to 15 per cent it would not be so .difficult.” Mr Parry (Labour, Auckland Central) : How would Mr Forbes make up the balance? Mr Coates: I believe there are further economies that can be effected. Mr Parry: What are they? Mr Coates said that in addition to departmental economies it would be possible so to readjust matters as to make it possible to reduce the incidence of taxation in that regard. There would be time to consider that aspect before the taxing Bills were presented to the House. Discussing the proposal to raise an additional million by Customs increases Mr Coates declared that nobody liked placing an impost on tea and sugar, but, after all, money had to be found. Labour members: So long as you don’t tax incomes. Mr Coates: It’s all very fine, but we are all in this, and the country’s Budget has to be balanced. We have to face the position, and so far no better suggestion has been made. Mr Fletcher (Independent. Grey Lynn) : What about the oil kings? Mr Coates: We have ample time before the taxing measures come down to consider the oil kings, and no doubt the oil kings will receive proper consideration. Strong Objection to Primage. The worst element in the Customs taxation, declared Mr Coates, was the primage duty. Although in the war years his party imposed primage duty it was when produce prices were more stable. Primage affected duty-free goods required by farmers and industries. It increased the cost of production. When the earning power of the workers had been reduced it was essential to keep down the cost of living and give the farmers a chance to produce at a profit. Mr Holland (leader of the Labour Party) : Does that mean your party will resist the primage duty? Mr Coates: I am putting the position and asking the Prime Minister to reconsider the primage duty. Mr Parry: We will see what you are in favour of.