MR ENDEAN AT ST. ALBANS

Press, Volume LXXIV, Issue 22336, 25 February 1938, Page 10

MR ENDEAN AT ST. ALBANS

TO XHB EDITOR OP THE PRESS. Sir, —In the report of Mr W. P. Endean’s address at St. Albans, he is said to have stated that N«w Zealand was the highest taxed country in the British Empire. That is absolutely wrong. He quoted the New Zealand tax figure as £22 7s 6d (New Zealand currency) and England as £l7 14s 5d (sterling). In order to make a fair comparison, add 25 per cent., and that is £22 3s Old in New Zealand currency. Now to that must be added the cost of police, unemployment, and education, which three items are under the authority of local bodies, and so are not included in the national figure given by the speaker. The New Zealand figure includes all three items, and would therefore be less than that of England. Mr Endean would hide this fact. Is that fair or honest? < Unemployment in New South Wales is being greatly financed by overseas borrowing, is it not? Does not that lay a greater burden on the community, to be,met in the future? We are paying our way, New South Wales is not. Which is the better? Mr Endean implied that interest was too low. Can he or any other speaker explain just how higher interest rates will benefit the great majority? What does a higher rate mean? (1) The more that is paid in interest the less can be paid in wages and salaries; therefore a reduction follows in these. (2) That will have its reflex in shrinking the local market for everything produced, .leaving more for export at a lower price, and creating more unemployment. (3) An increase in the cost of living must follow. The manufacturer will have a smaller turnover (as also the retailer), so he will increase the price of goods, and pay less for raw materials, in an endeavour to fulfil his obligations to the banks or other financial institutions.

(4) The primary producer, along with the wage earner, will bear the brunt of the increased rate. With a smaller return he must pay a. fixed charge, thereby reducing his standard of living. (Do farmers want that?) (5) It ‘ means a grossly inequitable distribution of the national income, as in the years of. the last Government, resulting, among other things, in the less fortunate parents being forced to deprive their children cf higher education.

(6) It will take from those who can least afford and give to those in the main who are not in need: making the rich richer and the poor poorer. It will also tend to increase rents. (7) Shareholders in financial and money-lending institutions will receive the greatest benefit. (No doubt the National Party considers these in most need.)

(8) If opportunity presented itself for conversion of our oversea loans to under 3J per cent, the National Partv if in power, would'not avail itself of such a golden chance, as Mr Endean implied 3J per cent, was too low a rate. The few points I have enumerated reveal tha hidden policy or intention of the National Party.—Yours, etc., H. TRITT. Fairlie, February 23, 1938.