Letters to The Editor

Waikato Independent, Volume XLV, Issue 6281, 24 August 1949, Page 10

Letters to The Editor

INCENTIVE FOR INDUSTRIAL EFFORT IS WANTED

Sir,; —In his Budget speech Mr Nash admitted, our stability was dependent on overseas trade and went to some length to explain that Britain, our main customer, is facing great difficulties. The future obviously demands that we should be concerned about the cost in respect to our primary and secondary production, but Mr Nash has> not ntade one contribution towards decreasing the cost and increasing production. Sales tax, which when only 5 per cent., he and his Government regarded as iniquitous, but it is to remain without deduction at the increased rate of 20 per cent netting him for the year 131 million pounds which of course, the consumer has to pay. It is alright for Mr Nash to talk in millions, but that is not tne measure of our prosperity or what in commonly called 'our standard of living.' Money itself produces nothing. What this countr needs is an incentive for individual effort that will permit the people to create prosperity for themsel ves. Mr Nash states we have the highest standard of living, but measured in the terms of hours of work as a T>asis of purchasing power, the wage earner in particular knows what little he can buy in return for 40 hours worked. M r Nash may convince some people that they are getting a more equitable share of the nation's income, but the majority are looking for a more equitable share in goods—not money that has a "Waltered'' down spending power that deprives them of what they are wanting. Without reduction of taxation to give an incentive to produce more we aw committed to continue to w'ork to allow Mr Nash to spend our earnings, yet I believe with the necessary inducement people generally have come to realise that if wq want more for a pound wo have to do more for it, but apparently from Mr Nash we are to have more m|ed icine but no corrective cure. Mr Nash has recently travelled so much he apparently is out of touch with public opinion, for if there was ever a timo when people were expecting a budget that would lower the cost of living by reduced taxation designed to givJ people an incentive to produce more, which in turn would reduce prices and increase the purchasing power of their pound, it is now. In his budget; Mr Nash appeals to people to save and businesses to put money into reserves. We know why this should be done, but after he has taken his demands will Mr Nash tell us where our taxpayers are to find the money to do it. I am etc, "A Taxpayer."