"LONG OVERDUE."

Auckland Star, Volume LXII, Issue 252, 24 October 1931, Page 11

"LONG OVERDUE."

CUSTOMS TARIFF REVISION.

REQUIREMENTS OF COMMERCE

PRESIDENTIAL ADDRESS.

A complete and scientific revision of •the Customs tariff is long overdue, said Mr. H. T. Merritt, president, in his address at the opening of the annual conference • of tile New Zealand Associated Chambers of Commerce in Wellington on Thursday.

Over the last six or seven years, the aggregate: annual revenue from Customs taxation in the Dominion had averaged £9,000,000 annually. For a country of this , size the sum was a huge one to raise in indirect taxation from a single source, and it might be seriously contended that it constituted an unduo l>roportion of the national revenue.

• Referring to the fact that the amended Budget contained no proposal for a statutory reduction of ' interest rates, Mr. Merritt said this was a relief to all. It was widely known that interest rates were being reduced, and everyone was looking forward to the early fulfilment' of the promise of lower rates made by; the Associated Banks. To stimulate industry and help in a return to prosperity, interest' should come down. Ho considered a period of .cheap money was not far ahead. , *

"What, is the reason behind the refusal of successive Governments to tax the profits of public trading bodies?" asked Mr. Merritt. "The soundness of the principle was admitted by the Prima Minister, to a deputation from the Associated Chambers. No one would dream of accusing the Prime Minister of stupidity; yet this persistent refusal appears to me to be both stubborn and stupid."

Mr. Merritt challenged -Hie Government, particularly the Prime Minister, the past Prime Minister, and the Finance Minister, to state any reason why public .trading undertakings should not be subjected to the same conditions as private enterprises. As an expediency surely now was the time.to do it. There was, on the face of it, no reason for perpetuating this' "gross .injustice," particularly when the taxpayer -was distressed beyond measure by the demands now being made upon him, and the exchequer was so badly in need of. funds. In commenting on trade prospects, Mr. Merritt said there was every reason for thinking that better times were not far off. The country's, problems demanded careful handling, and relief from the crushing burden of'taxation was urgently needed. ■ ■ "It' is more than we can bear," said. Mr. Merritt'.' "Strict" and still stricter economy must be practised in public affairs."