THE NEW TAXATION.

Auckland Star, Volume LI, Issue 228, 23 September 1920, Page 7

THE NEW TAXATION.

'LCOAI, BODIES 'PROTEST. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. Strong opposition to the Government's proposal to tax municipal trading conferns \va6 -ex-press—l at a meeting-of the executive of the Municipal Association held in Parliamentary Buildings this afternoon. Mr. J. P. Luke, M.P. (Mayor of WeH'njrton), presided. The (ifiairman said he knew that the Government must have money, but he did not think it right that such money whnuM !,„ rai-ed by taxing the trading or H<li< atrial cotwrns nf ]-,cal authorities. He move.d, "That members of the executive wait on the Prme Minister and Ptreae that the proposal to tax local bodicw' debentures and undertakings is inimical to the best interests of the people of the Dominion, and respectfully urges the Government to delete the proposal from the Bill. , Mr. F. J. Martin, solicitor to the Muncipal Association, said the effect of the Bill was to place the debentures of local bodies on the same footing as ihe debenture* of companies, and a tax of 3/ in the £ was to be paid on them. The Government would collect the tax direct from the local body, which would deduct the amount of the tax when it paid the coupons. The debenture tax was to be paid on coupons honoured in London. Mr. Massey had stated that that was not intended, but as the speaker r?ad the Bill that was its effect. The proposal to tax debentures placed a hardship on small investors, because a large number of debentures were taken up fey people with small means. The Mayors oi Dunedin and Auckland supported the motion. The Mayor of Auckland, who was unable to attend had expressed the view that if the Government |mtM.-ted n its proposals to t.i v tli" pr M the trad ng dopar'.iunis of local bodies it should make ie clear that only ruich profits and not income from general rates or water charges should be taxed. Mr. Luke's motion was carried and it was arranged that the executive should place its views before the Prime Minister to-morrow morning. LOCAL BODIES' FINANCE. Dealing with local 'bodies' finance, the Mayor of Devonport (Mr. H. S. \V. K'ng) at*the borough council meeting last evening said that possibly the attitude of the Government on the question was directed more or !e*s to call'ng a halt meantime in the des're of the local bodies to go in freely for expenditure so that the nation's financial requirements would not be' prejudiced. Possibly nliso the 'Government wished to safeguard ratepayers from reekle-ss expenditure, and perhaps intended to find the necessary money for local bodies at the same time controlling it as a wise father controlled his son's expenditu.e. If local bodies competed jn the finaucial market they would next be competing in the labour market, which would make matters more difficult than ever.