"UNFAIR PRIVILEGES."

Auckland Star, Volume LXV, Issue 162, 11 July 1934, Page 10

"UNFAIR PRIVILEGES."

GAS INDUSTRY PENALISED.

DIFFERENTIAL TREATMENT,

"The tariff proposals of .the Government show to what lengths the Government is prepared to go to bolster up its electrical enterprises and to squeeze out all competitors by means of unfair privileges," said Mr. James Lowe, general manager of the Auckland Gas Co, Ltd. "Not content with immunity from income taxation, these semi-State departments demanded abolition of the 20 per cent Customs duty on electric cooking and electric heating appliances, on the plea that it is necessary to build up the domestic load. This could be only done at the expense of the gas industry, which paid 25 per cent on gas cookers.

"The gas industry was content to ask for equality of treatment.

"The schedule now before the House contains the iniquitous proposal that electric cookers should be free, while gas stoves continue to be penalised to the extent of 25 per cent. Both classes of cookers, electric and gas, are manufactured in the Dominion, and there can be no reason in equity or justice for the differential treatment. For the first time it is proposed to put a duty of 10 per cent on gas meters which have hitherto been free, and might very well have been left alone. No duty is levied on electric meters.

"Crude oil, which is a formidable competitor with the gas and coal industries, is still to be admitted free, although Britain recently imposed a tariff of Id a gallon in the interests of British coal. I made application for a duty of 2d per gallon on fuel oil before the Tariff Commission, but without avail. It would be interesting to know just why the oil interests get special treatment in New Zealand.

"It appears that the gas industry, which is a very large employer of local labour, both directly and indirectly, and which contributes heavily by direct taxation to the revjmie of the Dominion, is to be squeezed in the interests of State communal enterprises, which contribute practically nothing to the revenue either through the Customs or by income taxation."