WHAT BENEFITS?

Auckland Star, Volume LXVIII, Issue 299, 17 December 1937, Page 13

WHAT BENEFITS?

IMMIGRATION PLAN. REMEDYING MANY SVILS. TAXATION COULD BE LOWER. (By FORTHRIGHT.) Reasons for the urgent necessity for a greater population have been given, and the difficulties in any immigration scheme frankly admitted and outlined. It is now time to say what good any such scheme would be to the country. Firstly and broadly, it should be said that a greater population would remedy those evils that are caused by too small a number of people, and at th® sajne time would obviate those dangers which, though perhaps not grave or even present to-day, loom uncomfortably near for the future. A greater population would mean that our internal market would be greater. Right from the start the newcomers and their families would need food and clothing, fuel and all the other necessities of life, as well as some of the luxuries. The first to feel the benefit of a wider demand would be the farmers, and, since it is on the goods they produce that New Zealand's economy is based, any benefit to them would be productive of great good to the whole country. In a previous article the dangers inherent in a falling population in Great Britain, almost our only market for primary produce, was made clear. It is obvious, then, that the greater the market wo have here the less we would be affected by any diminution abroad. An Argument Answered. It might be said that a man is as great

a consumer in Britain as here, and that therefore there would be no point in taking him away from his home. That may be true, but trade in one commodity makes trade in another, so that the effect of greater internal consumption of meat, butter and cheese would mean greater trade in other directions. It is important to point that out, because it is often lost sight of. It is important, too, from another point of view. In the nature of things, this Dominion must gradually develop from an agricultural into a part agricultural, part industrial country. That is to say, our secondary industries must become more important. That fact has been admitted by Britain, whose best customer for manufactured articles we are. If that development must come, the larger the market here the better, i The fullest, and therefore the most , economical, use would be made of capital i invested, and there would be an adequate L reason rather than an excuse for i secondary industry. . Fairly often new industries have : either directly or indirectly to be helped > by the State on their inception, and too often this help tends to become permai nent. The greater the potential market • for a new commodity, the less the need > for Government assistance. This is one ' wa y in which capital would be more fully used. Higher or Lower Taxation. ( Mention of capital invested leads to , another aspect. The fact that we have sufficient utilities such as railways, hydro-electric works, roads and the like for double the population has been mentioned, a« has also the further fact that a decreasing population means an * increasing per capita financial burden. : Surely it is obvious that if there were more people to meet the same amount in . taxes the individual amount would be . less. This is one reason for supporting 1 immigration that should appeal forcibly to the man in the street. If our populai tion is not increased, then taxes cannot g fall. If it is, then they can and will. , Bound up with this problem of taxation, which is what the payment of social services involves, is the question r of an ageing population. It has been J shown in a previous article that, with e the increase of the number of older pera sons in the community, the number of 1 taxpayers must become fewer, so that e fewer people must bear the same social cost. More than that, they must also support this ageing community through finding their pension money. Now, if the number of young and virile people were increased this age ratio would be corrected, and the burden of costs more equitably spread.

These are not specious arguments,

They are based on sound logic; and though the matter of finance is not more important than other aspects, it should appeal more forcibly to the individual.