EQUALITY IN TAXATION.

Auckland Star, Volume LXIII, Issue 238, 7 October 1932, Page 7

EQUALITY IN TAXATION.

POWER BOARDS AND GAS COMPANIES. MINISTER IN AGREEMENT. (By "Telegraph.—Press Association.) . WELLINGTON, Thursday. Some sympathy with the plea for the taxation of power boards and public bodies on an equal basis with the taxation at present imposed on private gas companies was expressed to-day by the Minister of Mines, Hon. C. E. Macmillan, speaking at a luncheon given by the directors of the Wellington Gas Company to delegates to the annual conference of the Gas Companies' Association of New Zealand. The chairman, Mr, G. Fitzgerald, referred to the existing exemptions enjoyed by State and public body concerns trading in competition with private companies, and he stressed the serious effect which this had on the development of the gas industry. Dr. C. Prendergast Knight said there was no doubt that gas companies had been unfairly treated in the matter of taxation. He could not see any reason for treating the citizens of Dunedin, Nelson, Palmerston North or Hamilton on a different basis from the citizens of Wellington, Auckland, Christchurch or any other town served by a private company. Profits were needed to pay dividends, and private companies served the communities better than did municipal concerns.

I Mr. James Lowe, of Auckland, said I tlie gas industry employed more labour in proportion to the capital invested than did the electrical industry. The Minister said that private companies had made large dividends in the past and had doubtless provided for the future. The fact that gas companies operated under a franchise was a clear indication that they had an advantage, and were it not for that monopoly gas companies might have to contend with a dozen competitors. "You suggest that I should consider whether some taxation should be put on electric power boards," said the Minister. "All I can say is that I must refer you to the Minister of Finance, and he will probably refer you to the National Expenditure Commission. I agree that to a very great extent these concerns should be subject to the same taxation as you are." (Applause.) The Minister added that he always advocated that as far as possible a standard "balance-sheet' should be required from power boards and public trading concerns. This would permit comparisons to be made. Referring to taxation of competitive public concerns,! the Minister remarked: "We will probably get it in the course of time. When we get over this blizzard we will reach I a time when your representations will receive more consideration." i