TAXATION BURDEN

New Zealand Herald, Volume LXXIV, Issue 22774, 7 July 1937, Page 16

TAXATION BURDEN

AN APPEAL FOE BELIEF EXCHANGE RATE PROBLEM MINISTER SEES DIFFICULTIES [ny TELEjRAPH—PRESS association] HASTINGS, Tuesday rVT.nttors relating to the sales tax and the exchange rate were placed before the Minister of Industries and Commerce, the Hon. 'I). G. Sullivan, last evening by the Hastings Retailers' Association.

The question of tho award governing shops and offices was delt with by Mr. V. A. Westerman, who urged the necessity of differentiating between the city and country in fixing conditions and wages under awards. He favoured something in the nature of a sliding scale that would allow for a .marginal employer and a marginal employco as between ctiv and town. Sales Tax and Exchange Mr. G. Roach referred to tho sales tax and the exchange rate and contended that they were an imposition 011 the consumer. He pointed out that the selling price of commodities to tho consumer had been raised by as much as one-third since tho sales tax of 5 per cent, which actually worked out at 10 per cent, was introduced. British goods had risen by ]2 per cent and foreign goods by even more as a result of the exchange. ''What we ask is that as soon as possible tho Government should gradually reduce these taxes so that it will be possiblo to restore the pound in full value to the consumer, and particularly to tho worker," he added. Mr. Sullivan said with regard to the exchange and sales tax 110 was not in a position to make any statement. Many Readjustments Required

"Frankly, and quite personally, I think that the bringing back of the exchange rate would prove an exceedingly difficult problem, which, if not handled with the greatest exercise of delicacy and care, could accomplish more harm than good on account of many readjustments required. Both matters are to be considered by the Government, and in the right time they will bo dealt with in the light of the needs of the country. I cannot see much chance of any alteration in the exchange rate for the time being."

Concerning tho award, Mr. Sullivan said that tho views expressed would be placed before tho Conciliation Council, and later tho Arbitration Court, but for the Government to take in hand a reduction of the powers of the Court would be to create an impossible and intolerable position. "! have made a study of economic statistics, and they dearly indicate that we are prospering extensively in almost every direction. By every test from which we can judge tho prosperity of tho people is pronounced, and retailers get the benefit of it. Quite frankly, I think that retailers are better off than manufacturers," he declared. There had been an enormous increase in turnover and spending power, and statistics showed quite clearly that while increases in wages earning had gone up 19 points, the cost of living had risen only barely seven points.