TAXATION BURDEN

Waikato Times, Volume 122, Issue 20422, 12 February 1938, Page 7

TAXATION BURDEN

DEBATE IN PARLIAMENT A PLEA FOR EASEMENT (Official wirplpcs) (RUGBY, Feb. 10. Attention was called in the debate in the House of Commons to the growth in national and local expenditure when a motion was moved urging the Government to do everything in its power to lighten the burdens imposed upon all classes of taxpayers and ratepayers. In moving the motion Captain Balfour (Conservative—Thanel), said the national expenditure in 1937-38 was £257,000,000 more than in 1928-29 despite the saving of about £140,000,000 on debt services. To meet this direct taxation was standing at the wartime level. The only policy was to find a way of drastically adjusting the relations between revenue and expenditure. A revival in international trade and saving on armament expenditure by means of a limitation convention must be looked to for this.

Government Reply The Financial Secretary to the Treasury, Lieut.-Colonel R. D. Colville, on behalf of the Government approved of the motion and said the increase in national expenditure since 1932 had been due to defence and social services. The supply services showed an Increase of £150,000,000; defence expenditure accounted for £93,000,000, and the civil services showed an increase of £54,800,000. While the Increase in expenditure was accounted for by the cost of services which the House of Commons agreed to be necessary, it would be wrong to leave the impression that It was viewed with equanimity by the Government. It realised the present burden of taxation made it imperative that no fresh commitments should be entered Into unless they were justifled on the clearest possible ground of public interest. The Government was alive to the danger of the effect of high taxes and to the very real universal desire to economise on armaments as soon as possible. The Government intended to effect that reduction by an agreement at the earliest time when it could safely be done.