DEMOCRAT BUDGET

Waipukurau Press, Volume XXX, Issue 272, 22 November 1935, Page 6

DEMOCRAT BUDGET

Announced by Leader

SALARY RESTORATIONS

reduction in exchange

(Per Press Association)

MASTERTON, Last Night.

Speaking at Hukanui to-night, Mr T. C. A. Hislop, Democrat leader and a candidate for the Masterton seat, said he had promised the people of New Zealand a Budget showing in detail hbw the Democrats proposed to put their policy into effect. On the expenditure side permanent appropriations accounted for £lO,634,000, annual appropriations £B,740,000, salary restorations, superannuation fund, subsidy and general £850,000, subsidies to farmers £3,750,000; total £23,974,000. Permanent appropriations for the year ended March 31 last, excluding main highways and exchange, were £10,507,225. The Democrats could show a substantial reduction on those appropriations by carrying into effect certain of the recommendations of the National Expenditure Commission, and by various re-ad-justments, such as a review of the amortisation fund and commitments on the public debt. The amount he'! had shown included interest and sinking fund on a proposed loan of £8,000,000 for national development and unemployment purposes.

The Democrats had adopted a policy that main highways taxation should be used wholly for the purpose of main highways, and they had included neither revenue from that taxation nor payments on account of main highways. Reductions in annual appropriations could be effected by savings through their national health and pensions scheme, and on account of savings through maintenance, over charges, depreciation and general administration, following the recommendations of the National Expenditure Commission and the Auditor-General.

Subsidies to Farmers

Provision for subsidies to farmers had been made to show the effect if the whole of the exchange were removed immediately. The Democrats, however, did not propose that the exchange should be taken off immediately, but gradually brought down in a manner that w'ould give the best results to both town and country. The amount of subsidy payable would be small to begin with, gradually increasing as the rate of exchange w r as reduced until they finally arrived at the maximum figure set down. When primary produce prices rose to normal paying levels, subsidies would be reduced proportionately, enabling tthem to make further taxation reductions.

Referring to unemployment, Mr Hislop mentioned that the interest and sinking fund on the proposed £8,000,000 loan were* included in permanent appropriations. Any subsequent loans would be provided from the balance of a contributory tax of 6d in the pound, which would bring in more than the amount estimated once the employment scheme was under way and the Democrats’ general policy began to take effect. Estimate of Revenue. The estimate of revenue was £24,055,000. The estimate was based on Mr. Coates’s estimate in his 1935 Budget, also on Air. Downie Stewart’s estimate of Customs and other revenue increases following exchange reductions. Mr. Coates himself admitted he had under-estimated the revenue for the current year, and there was no doubt there would be large revenue increases following the application of the Democrats’ general policy. The total revenue available to the Government for the year ended March 31, 1935, including the unemployment tax, amounted to more than £20,000,000. The Democrats’ estimate of the total revenue, including health insurance and contributory tax, was approximately £27,800,000; The sales-tax and gold-export duty were not included in the revenue estimates, as they proposed to abolish those two taxes. In addition the estimate for income-tax showed a reduction of 10 per cent, on that of Mr Coattes’s, as they proposed to reduce that tax by 10 per cent. Summing up the Budget the estimates were:—Revenue, £24,055,000. expenditure, £23,974,000; surplus, £Bl,OOO. Health Insurance and Pensions.

Dealing with national health insurance and pensions, Mr. Hislop said that £3,750,000 would come from the contributory tax. The £1,900,000

which was included in the estimate from annual appropriations for pensions w r o.uld -absorb £4,000,000, and health insurance £1,650,000.

Air. Hislop said that foi* years, even as late as 1932, annual taxation had always been in the vicinity of £17,000,000 to £18,000,000. To-day it had leaped to £25,000,000 per annum.

By getting back to sound principles there was no reason why taxation should not be returned to previous levels, and that was the Democrats’ aim.