REPLIES TO QUESTIONS IN PARLIAMENT

Wanganui Chronicle, 20 July 1950, Page 6

REPLIES TO QUESTIONS IN PARLIAMENT

PARLIAMENT BLDGS, Last Night (PA). —Twenty-four written Ministerial answers to questions asked previously were circulated in the House of Representatives today. USE OF STERLING The Prime Minister (Mr. Holland), replying to Mr. P. Kearins (Opp., Waimarino), said that the proceeds of New Zealand's exports must be received by the New Zealand banking system and no exception from the requirement under the export licences regulations would be justified. Mr. Kearins had asked whether the Minister of Finance would permit farmers who sold their wool on the London market to use the sterling funds obtained to bring into the Dominion motor-cars for their own use on non-remittance licence. During discussion of the answer, Mr. Kearins asked why one section of the community should be given preference and others not. He appealed to the Prime Minister to put all the people on the same basis and “stop the racket that is going .on among a favoured few, who can import articles in short supply.” Mr. Kearins urged the Government to stop the issue of non-remittance licences and take control of all sterling funds held overseas. He said that there was at present a “racket” in stocks and shares trading which should be checked. Mr. W. Nash (Opp., Hutt), former Minister of Finance, said the Reserve Bank, which was agent for the Government in controlling exchange, was the owner of those sterling funds, and not the banking system, as stated in the Prime Minister’s answer, which implied that the trading banks had control of the funds. DOLLAR LOAN “There had been no proposal to join with Australia in negotiations for a dollar loan,” said Mr. Holland in reply to Mr. R. McKeen (Opp., Island Bay). The Prime Minister said, in reply to a further portion of the question, that there was no foundation for the implication that New Zealand would join the International Monetary Fund and World Bank to acquire the dollars necessary for the importation of capital equipment from the United' States. INCOME TAX REMISSION The Associate Minister of Finance (Mr. Bowden), replying to Mr. F. Hackett (Opp., Grey Lynn), said that deduction for income tax purposes of expenditure b‘y farmers on newspapers had been approved by the Commissioner of Taxes in cases where a newspaper was purchased for the purpose of checking market reports and obtaining information on stock prices and other matters directly affecting the farming industry. “Other taxpayers in business who require newspapers for similar reasons connected with their business are similarly entitled to a deduction,” added Mr. Bowden. IMPORTED FRUITS The Minister of Agriculture (Mr. Holyoake), replying to Mr. R. Macdonald (Opp., Ponsonfcy), said that representations regarding the future of the trade in imported fruits had been made to the Government by various interests concerned. “These representations are at present under consideration,” said the Minister. Mr. Holyoake, amplifying his written reply, said that he had received representations from a number of organisations and had invited information from all the organisations and interests he could think of. Several discussions had been held with citrus fruit growers, apple and pear growers, fruit and produce merchants and fruit retailers. The matter had been before the Government for some months, and no decision had been reached on the question of retaining the present Marketing Department or restoring the importation of fruit to private enterprise. Mr. Holyoake said the question was a difficult and vexacious one, and he was fully alive to the implications it could have for the Cook Islands trade. Mr. Macdonald wondered if the Minister’s reply meant that the first nail had been driven into the coffin of the Marketing Department. He hoped the Minister would not be deluded by the merchants into removing controls and that if controls were lifted due regard would be paid to the risk of bringing in fruit fly to the detriment of the fruit-growers of the country. INCOME TAX ON TIPS The Associate Minister of Finance (Mr. Bowden, replying to Mr. P. G. Connolly (Opp., Dunedin Central), said that for an'y expenditure to qualify as a deduction for income tax purposes, it was necessary to establish, firstly, that expenditure had actually taken place; secondly, that it was an expense exclusively incurred in the production of the assessable income of the taxpayer. “Taxpayers claiming deduction for tips paid out would be required to establish that the expenditure satisfied these conditions,” stated the 1 reply. i Mr. Connolly had asked whether, 'in view of the fact that tips must now be declared on income-tax returns as income, would taxpayers who said tips be allowed to claim exemption for the total amount so paid. Further Questions I Further questions were asked in the House of Representatives today: OLYMPIC TEAM. Mr. W. W. Freer (Opp., Mt. Albert) asked the Minister ot Finance if he would advise the House if it. is the intention of the Government to heln fln-

ance sending a New Zealand team to the next Olympic Games at Helsinki. TAX ON LEAGUE. Mr. R. Macdonald (Opp., Ponsonby) asked if the Minister of Finance would consider the remission of amusement tax payable on gate receipts of New Zealand Rugby League. “This tax is not payable by other sports bodies” stated a note to the question. “CITIZENS’ FORUM.” Mr. F. Hackett (Opp., Grey Lynn) asked the Minister of Broadcasting if it was intended to reinstate the session known as the "citizens’ forum’’ in the near future, or had the session been discontinued permanently? APPOINTMENTS. Mr. A. G. Osborne (Opp., Onehutiga) asked the Prime Minister whether the appointment of Mr. T. C. A. Hislop, as New Zealand High Commissioner in Canada, was an indication that it is a government policy to appoint political rejects to important posts?