DEBATE OPENED ON N.Z. ANNUAL TAXATION BILL

Wanganui Chronicle, 15 September 1948, Page 5

DEBATE OPENED ON N.Z. ANNUAL TAXATION BILL

(P.A.) Parliament Bldgs., Sept. 14. After the debate on tire Budget had ■been wound up tonight, the House of Representatives proceeded to the second reading debate on the Land and Income Tax (annuual) Bill. Mr. W. S. Goosman (Opp., Piako), said the whole Budget was out ot focus in the light ot return to paritv and the Opposition should not be asked to assent to a taxing Bill without a clear statement of the expected revenue and expenditure under the adjusted national economy. Only slight concession had been made from the wartime taxation levels, and there was insufficient encouragement for productive enterprise What had the Government done to help Britain and ourselves by expanding production? In this year's Budget Mr. Nash spoke of the need lor galvanising the people into greater productive activity, but what had the Government done to galvanise the people? Mr. J. .1. Maher (Opp., Otaki): A tin bath for a State house. Mr. Goosman deplored the lack of | incentives to greater production. He isaid production of butter and cheese jin New Zealand had declined in the jpast nine years, and the increase in |meat production was too little. We [were not making the progress we ■ should in New Zealand, because proigress depended on individual enterprise and private ownership, not on i collective ownership of State enterI prises. ; Mr R. M. MacFarlane (Govt., Christchurch Central) said that with the 1 passing of the Bill thousands of people I would not pay any income tax at ail. ■ !The Biil was one which dealt with the I I present, but if, as the member for I<- I | ako had asked, what would happen it | II here was a recession in prices, he was ; confident the Minister of Finance I I would meet the crisis as capably as lie ■ ihad met others. Mr. E. R. Neale (Oop., Nelson) con- I Isidered the Budget should have been | [withdrawn and re-presented with re- i vised figures in line with the exchange [ adjustment. High taxation gave no, [incentive for business or productive ■ expansion. He urged that a commis-1 sion be appointed to investigate the

incidence of taxation and considered too many matters were left to the discretion of the Commissioner of Taxes to deal with. The need for a commission was clear. The present taxation system collected too much, did not levy tax in the best way, and in many cases was not fair or equitable. The Minister’s own Budget clearly Showed that taxation could be reduced. Langstone (Govt., Roskill) said Mr. Goosman had spoken of the need for incentives, but what of the incentives enjoyed by the lire insurance companies? In Christchurch in 1946 premiums totalled £115,693 and the sums paid out totalled £20,363. Yet last year’s fire disaster showed that no city in New Zealand had adequate fire-fighting appliances. Mr. Langstone said fire insurance underwriters, through their representation on fire boards, were “as miserable and parsimonious as church mice” when asked to pay out something for equipment for brigades, but. he had known instances where companies were prepared to lend money to local authorities at high rates of interest Io improve the water supply. Mr. M. 11. Oram (Opp., Manawatu) said workers were beginning to realise they paid out a bit more than Is 6d in the £. In direct and indirect taxation the workers paid for the millions transferred Io the Social Security Fund to bolster up benefits which allegedly were free. The man in the street was beginning to ask if taxation would not be reduced. There was need for reduction to give an incentive to production The debate was interrupted by the adjournment. Earlier the Prime Minister indicated that departmental estimates under his control would, if convenient, he taken next Thursday, Friday and the following Tuesday. Ministerial replies to questions would be taken tomorrow afternoon, and some Bills on the Order Paper tomorrow evening. Mr. Holland said the Opposition would agree to those arrangements to help the Prime Minister. The House rose at 10.30 p.m. until 2.30 p.m. tomorrow..