EXEMPTION ASKED.

Auckland Star, Volume LXI, Issue 173, 24 July 1930, Page 8

EXEMPTION ASKED.

FROM UNEMPLOYMENT TAX.

AFFORESTATION COMPANIES.

LANDS MINISTER NON-COMMITTAL.

(By Telegraph. —Parliamentary Reporter.)

WELLINGTON, this day.

Exemption from the unemployment taxation was sought by a deputation which waited on the Minister of Lands, the Hon., E. A. Ransom, from the 2sew Zealand Timber Growers* Association to-day. .. t The president of the association, Mr. Fraser, said the companies had a.great deal in common with the State Forest Department, and were doing a great deal to cope with the unemployment problem. During the last five years the companies had distributed about £1,250,000 in wages, and had also purchased goods in the Dominion of the value of £100,000. As the forests developed large sums of money would continue to be distributed in wages. They did not come to the Government for assistance, but in view of the possibilities of increased taxation on companies, afforestation companies, made a plea for exemption from unemployment taxation. They also considered that the Government should subsidise local bodies which were prepared to place unemployed labour 011 tree planting. "Might be a Temptation." Dr. W. H. Horton said that the companies could not complain of the treatment (hey had received in the past, but he thought that in view of the present depression there might be a temptation for the Government to place extra taxation on afforestation lands or on the companies. He stressed the fact that afforestation was a primary industry and that as the forests developed they would give rise to secondary industries. The. companies at present were employing large numbers of men during the winter seasons, when the unemployment problem was most severe. There were certain provisions on the Statutes for exemptions for companies from taxation, and as over £4,000,000 from overseas and £1,000,000 from the Dominion had been invested in companies on the understanding that taxation would not be applied, its imposition would be a retrograde step. "A Policy Matter." In reply, the Minister said he realised that the work the companies were doing was of great magnitude and great importance. One of the problems of the Government was to find profitable employment for those out of work, and it had felt that tree-planting would give a return to the country for the money expended. Thus the Government's afforestation work was extensive and it was already subsidising local bodies-in their work also.- He could not give a reply to the request for exemption from ' taxation, as it was a policy matter, but he would say that in the Budget the companies had not been singled out in that direction.

The question of rating, was one for the local bodies 'The Government only valued land. It was also carrying out scientific, research from which the companies would benefit. He thought that a great deal could be done in the future in-demonstrating to the,public the various uses of woods grown, especially the uses of wood pulp. These demonstrations should allay doubts as to whether forests were a sound economic proposition. With the placing of the Forest Service undei 4 the Minister of Lands there had been, more co-ordination between the two Departments and no disagreement as to which lands were suitable for settlement and which were best suited for, tree-planting.