HIGH TAXATION

Press, Volume LXXXII, Issue 24800, 14 February 1946, Page 6

HIGH TAXATION

BURDEN ON INDUSTRY IN AUSTRALIA

VIEWS OF NEW ZEALAND VISITOR

“The lowering of taxation is one of the most important things to be undertaken, at the earliest possible moment, in Australia,” said Mr W. H. Hindle, of Wellington, president of the Associated Chambers of Commerce of New Zealand, in an interview with “The Press” yesterday. Mr Hindle recently returned from a visit to Australia. “The position in Australia is similar to that in New Zealand.” he said. “The high taxation discourages initiative. Without full scope and reward for initiative, enterprise flags. When enterprise flags, the standard of living falls. It is incomprehensible why Governments do not realise that the greatest good for the greatest number is bound up with low taxation.” There was an insistent call in Australia for the removal of restrictions and controls, Mr Hindle said. This applied particularly to those which hampered the normal operation of business activities. There must be full recognition of the fact that if the people, and particularly returned servicemen, were to be absorbed into gainful employment, private enterprise must be given the fullest and freest opportunity to develop. “While the lowering of taxation is an urgent necessity, in the best interests and general well-being of the people, it is difficult to see how this is to be achieved unless high Government spending is curtailed,” Mr Hindle continued. “For instance, it has been decided to make uniform the railway gauge at a cost of £230,000,000, spread over seven years. This is only one of many projects that will run into many millions of pounds. If the people demand amenities and improvements, they cannot at that same time have a lowering of taxation.” Bonus System

“TTiere is a great deal of profit sharing in private enterprise, and bonus systems are becoming increasingly evident,” Mr Hindle said. “This has two merits; it gives workers the opportunity to earn according to ability, and it engenders a good spirit between employer and employee. In one factory I visited in Adelaide, which employs more than 600. the bonus system is proof positive of increased output, greater efficiency, and of course, better wages. The relationship between management and workers is excellent, and all are happy.”

Housing Problem The housing problem was probably Australia’s greatest headache, and was largely responsible for a great deal of the industrial unrest, said Mr Hindle. New Zealand could help to solve the housing situation with supplies of soft wallboard, which could be made in huge quantities in this country. Unfortunately it was subject to a duty into Australia. If that duty were removed, it would be a good thing for both countries. Chile had made an offer of 20.000,000 feet of soft timber for housing, and it appeared likely that the offer would be accepted. The way should be made open for New Zealand to offer soft wallboard. “Australia is definitely developing an export trade for her manufactured goods, a wide range of which is being shipped overseas,” said Mr Hindle. “Large orders are being received from India. Singapore, Hong Kong, and other, olaces for quantities that are huge by New Zealand standards. New Zealand is missing a great opportunity of sharing in this trade through lack of shipping opportunity. This is a question that should be receiving the attention of our shipping companies.”