BETTER OUTLOOK OF OPPOSITION.

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

BETTER OUTLOOK OF OPPOSITION.

MINISTER COMMENTS ON REFORM’S BUDGET SPEECH. (Special to the “Star.”) WELLINGTON, August 5. The Hon E. A. Ransom, Minister of Lands, expressed appreciation of the fair attitude of the leader of the Opposition, contrasting it with last year’s Opposition epithets such as “The Black Budget.” To suggest that the Government had not taken warning in regard to the future was to ignore last year's adverse comment on its Budget, which was said to be aimed at a big surplus. The Government had been searching for a long time for economies with a minimum of hardship, but it was impossible altogether to avoid individual hardship. The accumulated surpluses were mostly secured during the term of office of Sir Joseph Ward as Minister of Finance. It was good to hear the leader of the Opposition approve of a balanced Budget. In this he was backed by the opinion of the country. It had been suggested that this could be secured with less hardship than was involved in the Budget proposals. If anyone could suggest better methods of balancing without hardship, then the Finance Minister would be glad to consider them. He contended that the Budget fehoWed the Government’s recognition of the fact that the primary producer was entitled to the greatest consideration. Answering Mr Coates’s inquiry, Mr Ransom assured the House that the estimates would show a reality of £595,000 administrative savings. If the Government had to go further the House would have to consider the element of personal hardship involved in dismissals. The Economy Committee was still at work, and he believed that a permanent committee not confined to Ministers and heads of departments would be desirable. “ We value our education system too highly to sacrifice any part by indiscriminate economy,” declared Mr Ransom, who said it was considered better to have an inquiry by a committee of experts to satisfy the House and country that in bringing about economy the system would not be sacrificed by hurried measures. Income Tax. The Minister contended that the New Zealand income tax was not unduly high compared with other countries. If a primage duty was objected to it was open to those concerned to make representations to the Government. “But,” he added, “the all-essential point is, provided you give the Treasurer the same amount of taxation 1 am sure he will l>e willing to meet those concerned.” The primage duty was light compared with that in Australia, where in some cases it amounted to 10 per cent. He agreed with the contention that road construction should be for development of land. When it was suggested that the Government should give more consideration to back country roads he could not help recalling last session’s defeat of the proposal to allocate a penny of the petrol tax for backblocks roads. The leader of the Opposition protested against this and ths Minister of Finance had to withdraw the item, thus £IOO,OOO was lost to backblocks roads. A Contrast in Costs. It was a disappointing fact that the low prices of primary products were not fully passed on to the consumer. As an example, though no high degree of skill was required to produce

knitting wool, it cost 10s a pound, though the highest price of raw material was tenpence. He would like to know where the profit was going, and it would pay not only this but every other Government in the world to set up commissions to inquire into the difference between the cost of the raw material and that of the manufactured goods. Some said it was due to high wages. I do not regard wages as the principal factor in keeping up high costs, either for foodstuffs or raw materials.” he said. The Minister contrasted the demand for higher wages with the demand for reduction of taxation It was a case of finding some tax which would hit the other fellow. The complexity of the economic storm was such that responsibility rested on every public man of every party. The primary producers, w’hile bearing their share of indirect taxation, were being specially considered in respect of direct taxation. The country must look to land settlement to get over its difficulties, together with improvement in the quality* of its products and more intensive farming.