XN000022-1973-03-28 — Page 5

3

Wednesday, March 28, 1973

While recognising the importance of education, he shared the conviction

that the provision of free primary education was "contrary to our basic financial

policies."

# "With our narrow and low tax system, he said, "I find elusive the

arguments that those who can afford to contribute directly towards the inevitably

very high costs of the education of their children should not do so."

The same arguments applied to an expensive medical service, he said,

adding that there were strong financial reasons for raising medical fees

"provided always that there is an adequate system for relieving the burden

on those who generally cannot afford to pay."

Social Development

He disagreed with the contention that social development involved

providing services free of charge and said he could see no virtue in raising

taxes from people simply to provide the same people with free facilities.

Refuting criticism that he had under-estimated revenue for the

coming financial year, Mr. Haddon-Cave pointed out that the effects of his

tax proposals were not included in the figure of three per cent by which

total revenue in 1973-74 was expected to exceed the 1972-73 revised estimate.

The effects of the tax proposals, he explained, would raise revenue in

the next financial year to seven per cent over the revised estimate for the

current year.

forecast,"

"This may seem a low figure, but capital revenue is so difficult to

/He also