XLI

8.—6

SCIENTIFIC RESEARCH. During the present session steps will be taken to give effect to the recommendations of the Industries Commission, the New Zealand Institute, and the New Zealand Board of Science and Art regarding scientific research. The Board of Science and Art, which was set up in 1913, will be converted into a Board of Science and Industry, and its powers and scope of action enlarged. By this means it is hoped that scientists will be encouraged to make investigations with the object of improving and enlarging our native industries. In the past this has been done in a spasmodic manner, but in the future the Board will be given greater opportunities. Scientific research may be carried into every branch of industry and by-products turned to commercial profit. In the primary industries of agriculture and mining there is a vast field for scientific research. TOWN-PLANNING. The important question of town-planning is being considered. There are many beneficial clauses in land and local bodies' legislation at present on the statute-book. These and other provisions will be embodied in a measure which will be introduced in the House. If the Bill cannot be put through in the present session it is proposed to appoint a town-planning expert, whose services will be available to all local bodies and who will be able to advise upon the best and latest ideas in this important branch of local government. TAXATION AND FINANCE. I regret that I am unable to hold out any immediate prospect of an appreciable reduction in taxation; indeed, it may have to continue on the higher basis for some time. The expenditure arising out of the war and the increasing demands of every branch of the Public Service render it necessary to conserve our revenues. For the last two financial years the expenditure of the Consolidated Fund shows increases of £3,553,311 and £5,108,325 over the expenditure of the financial year immediately preceding, but the revenue increases were only £2,146,150 and £3,728,968 respectively. The Government has given serious consideration to the problems of taxation, and measures of reform will be introduced having for their object the distribution of taxation equitably and in accordance with the rapidly changing conditions of life and industry. A Finance Committee has been set up in the House of Kepresentatives and the financial proposals of the Government, including Bills dealing with Stamp and Death Duties, Land and Income Tax, and other revenue-producing legislation, will be referred to this Committee for consideration and report, even though, as I have indicated, I may not be able to ask Parliament to reduce taxation or do without any of the aggregate amount of revenue collected at present. There are anomalies which require to be removed, and adjustments may be made which will relieve certain sections of the community who under present conditions feel they are being called upon to pay more than their fair share of taxation. ESTIMATED REVENUE. For the year 1920-21, under the main heads of each of the important Departments, I estimate the revenue at — Customs .... .... .... .... .... 6,000,000 Eailways .... .... .... .... 6,000,000 Stamp and death duties .... .... .... 3,097,000 Post and telegraph .... .... .... 2,650,000 Land and income tax .... .... .... 7,905,000 Beer duty .... .... .... .... .... 360,000 Registration and other fees .... .... .... 180,000 Amusement-tax .... .... .... .... 68,000 Marine .... .... . .... .... .... 68,500 Miscellaneous .... .... .... .... 1,070,700 Territorial revenue .... .... 179,300 Endowment revenue .... .... .... 124,200 Other receipts .... .... .... .... 10,000 £27,712,700

vi—B. 6.