WOULD OPPOSE LABOUR

Auckland Star, Volume LIX, Issue 260, 2 November 1928, Page 10

WOULD OPPOSE LABOUR

(Extended Report by Arrangement.)

MR. JENKINS EMPHATIC.

SETTLEMENT AHI> TAXATION

SUCCESSFUL MEETING AT KOHL (Extended Report by Arrangement.) '"In no circumstances would I support any motion which would put the Labour party on the Treasury benches," declared Mr. H. R. Jenkins, United party candidate for Parnell, in answering a question at the conclusion of his address at Kohimarama hall last night. This declaration was greeted by loud applause. The audience of 250 electors accorded Mr. Jenkins an enthusiastic reception, there being a burst of applause and foot stamping as he ascended the platform. Mr. J. Hubber, who presided, pointed out that Mr. Jenkins was a successful business man, and was the type of man who would do much for the country and the district, if elected.

Dealing with the all important question of land settlement, Mr. Jenkins stressed the necessity for opening up new Crown land areas, preferably those contiguous to railways already operating. Settlement should be pushed on vigorously, side by side with railway and roaduig construction, so tSiat the man on the land might get l.'j produce to the market quickly and without lose. "Apart from land settlement, I would endeavour to run this country out of revenue," said Mr. Jenkins.

Taxation 60 Per Cent of Revenue. Taxation in New Zealand constituted to-day over 60 per cent of the revenue, whereas in Canada it was under 50 per cent, Mr. Jenkins said. In addition to the amount of taxation it was important to consider its distribution. Income tax was payable only by people who made the income, and therefore it was the fairest form for the people as a whole. Company income tax was undesirable, in that it was based on the company profits as an entity rather than on the profit to the investor* In practice it throttled industry.

When taxation was considered incomes should first be explored and taxed to a reasonable degree. It was an involved matter to make a complete comparison with other countries, but the maximum in New Zealand was 4/G in the £ and in Canada 10/ in the £. On a £20,000 income in Canada it would be 7/4 in the £. These figures were without provincial tax. . The exemption limit in Canada was £300 per annum for a single man and £600 for a married man. The Wealthy Would Pay.

"I emphatically differ from the when it says my proposals mean additions to the taxation on email incomes," declared Mr. Jenkins. "They mean just the reverse. At present, in company taxation, the modest investor with £100 in the concern pays just as heavy a percentage as the man with £10,000. Under my suggested distribution the moderately-circumstanced man would be exempt and the wealthy one would pay. So far as the squatters are concerned they would have to find a very substantial sum and relief would be given to the people who have just enough ta make ends, meet." •

Admittedly Customs totals had to be taken in relation to imports, but by the same argument income tax had to be taken in relation to exports. The "NewZealand Herald" had quoted the Customs figures for 1918 and 1927. The candidate offered figures taken from the 1928 Year Book. The percentages shown in the last column of his table (shown below) furnished, ho said, an illuminating illustration of the relation of income tax to exports.

Year. Exports. Income Tax. P.O. ]!tIS . JC2H.r>()O,(MH) £5.000,000 11) JOSS . 4tt.000.000 3,831,000 8 11>24 . .V-\r>oo,<KM) KJKI.OOO 7 HKSi . 55,230,000 3,380,000 (t 102U . 43,250,000 3,398,000 7

These figures, he said, showed that in 1916 income tax in relation to exports was little more than one-third of what it was in 1918. The "Herald" had dwelt on imports, but what about the exports? The wheatgrower had price and tariff protection, he enjoyed freight and other concessions, but paid no income tax. The squatters' export wool prices had, since 1922, been in excess of the average prewar price by 27 per cent in 1923, 90 per cent in 1924, 123 per cent in 1925 and 43 per cent in 1926.

Empire Preference. Dealing with Empire preference exercised through the Customs, Mr. Jenkins maintained that the attitude taken up by foreign countries should largely govern New Zealand's policy in'reciprocal treatment. This principle could not be adequately examined on the bulk basis taken by the "Herald." The Year Book showed that for 1926, out of £8,300,000 Customs duty collected, £2,700,000 eaine from spirits and tobacco, on which the duty was 100 per cent. In the same year, apart from goods carrying "special duties," there was, in a total of £27,500,000, only £850,000 worth which carried duties in excess of 35 per cent ad valorem. No one wished seriously to disturb the duty on spirits and tobacco, and with their exclusion the "Herald's" figures collapsed.

"Will the 'Herald' make a definite, precise statement that it approves the continuation of the present exemption given to the squatter from income tax ?" asked Mr. Jenkins. With the added revenue from this source the ordinary Customs duties could undoubtedly be reduced, and taxation distribution be made more equitable.

A unanimous vote of thanks and confidence was carried.