TAX REDUCTIONS.

Auckland Star, Volume LXVIII, Issue 158, 6 July 1937, Page 9

TAX REDUCTIONS.

RETAILERS , REQUEST.

EXCHANGE RATE PROBLEM.

STATEMENT BY MINISTER. (By Telegraph.—Press Association.) HASTINGS, this day. Matters relating to the sales tax and the exchange rate were placed before the Minister of Industries and Commerce, the Hon. D- G. Sullivan, last evening by the Hastings Retailers' Association. The question of the award governing shops and offices was dealt with by Mr. V. A. Westerman, who urged the neceesity of differentiating between the city and country in fixing conditions and wajree under award*. He favoured something in the nature of a eliding scale that would allow for a marginal employer and a marginal employee as between city and town. Mr. G. Roach referred to the sales tax and the exchange rate and contended that they imposed an imposition on the consumer. He pointed out that the selling price of commodities to the consumer had been raised by as much as one-third since the sales tax; of 5 per cent, which actually worked out at 10 per cent, was introduced. British goods, had risen by 12 per cent and foreign goods by even more as a result of the exchange. "What we ask is that as soon as possible the Government should gradually reduce these taxes so that it will be possible to restore the pound in full value to the consumer, and particularly to the worker," he added. In reply, Mr. Sullivan said that with regard to the exchange and sales tax he was not in the position, as a single member of Cabinet, to make any statement. "Frankly, and quite personally, I think that the .bringing back of the exchange rate would prove an exceedingly difficult problem, which, if not handled with the greatest exercise of delicacy and care, could accomplish more harm than good on account of many readjustments required. Both matters are to be considered by the Government, and in the right time they will be dealt with in the light of the needs of the country. I cannot see much chance of any alteration in the exchange rate for the time being." Concerning the award, Mr. Sullivan said that the views expressed would be placed before the Conciliation Council. and later the Arbitration Court, but for the Government to take in hand a reduction of the powers of the Court would be to create an impossible and intolerable position.