VITAL FACTOR.

Auckland Star, Volume LXXI, Issue 233, 1 October 1940, Page 6

VITAL FACTOR.

PRESS IN WARTIME.

PURCHASE TAX ABANDONED.

Not only a free Press, but a widely distributed Press, was vital to the nation, said the Chancellor of the Exchequer, Sir Kingsley Wood, in announcing in the House of Commons that the Government had albendoned its intention to include books, newspapers and periodicals within the scope of the purchase tax.

Mr. Isaacs (South wark, N., Lab.) moved an amendment to delete newspapers, books, and periodicals from the scope of the tax. He pointed out that in present circumstances the printing industry had to carry heavily increased costs, and to put a tax on wlioclsale prices would be to put a tax 011 inflated figures. The printing industry was the industry indispensable to all others, and a tax 011 printing would be a disservice to all industry.

It was not silence that defeated rumour in these days, or talk; it was a statement in print in papers that they could trust, said Mr. Isaacs. He asked: particularly that newspapers should not be taxed. If Uiey were, there was a danger of the free Press being killed, lii itish newspapers were the best in the world. Some of the best of them were now living on their reserves. If the tax was passed on to the customer the charge could not ibe less than Jd, there would be a risk of fewer sales, and the purchaser would be giving the newspaper managements something far in excess of the tax, and that would not 'be fair. It would not be fair to make the retailer pay the tax by reducing bis commission. Some groups of newspapers would pay the tax themselves and not pass it on; others would not do so, and would be at a disadvantages. Chancellor's Decfcion. Sir Kingsley Wood said, that every section of the newspaper industry had. put forward by way of representations and deputation their case in an objective manner. In any ease it would be more difficult for people to spend money on books, periodicals and, in a lesser degree, newspapers in present conditions, He was advised that if the tax were imposed on newspapers it might affect their circulation or possibly in some cases their continuance. He certainly did not think that in this time of war there should be either a decrease in the circulation of newspapers or in the services they provided for the public. Not only a free Press, but a widely distributed Press was a vital factor, particularly to-day, in the dissemination of information and the maintenance of public morale. He had in mind not so much the national newspapers but the many local and provincial newspapers. While there were other considerations he did not feel justified in maintaining the tax on newspapers in present circumstance®. (Cheers.)

With regard to book* there was undoubted importance in the export trade which depended on succws in the home trade. And apart from financial considerations there was the necessity for the continued spread of British thought and expression abroad. In view of these considerations he agreed that books should also be exempt from tax, at least for the present. This decision included leaflets, pamphlets, periodicals, account books, etc., but not diaries. Economies in Paper. The need for economy in the use of paper is emphasised by the new Control of Paper (No. 20) Order, 1940, which came into force recently. A statement issued by the Minister of Supply says:—

While supplies of home produced paper-making materials are being developed Jko the fullest extent, they cannot be sufficient to replace the supplies formerly obtained from oversea, and the Minister of Supply has no hesitation in calling upon the public to sacrifice some of the lavish uses to which paper lias been put in the past, though he regrets that these economies must affect adversely employers and employed in the businesses which have produced the articles to which the restrictions apply.

The new Order replaces the Control of Paper (Xo. 16) Order, the provisions of which are continued with certain modifications and extensions.

The prohibition continues on new newspapers, inagaz\es, and periodicals and on the more frequent publication of existing newspapers, magazines, and periodicals. A statutory ban on the sale or return system for new-papers has been suspended on condition that newspapers all continue to be sold on a no-return basis and claims for returns will be admitted only in special circumstances. The prohibition of the "sale or return" system now applies to magazines and other periodicals. The prohibition on the printing of posters relating to newspapers, magazine*, and periodica 21 coiitiiiUca.