BUDGET COMMENT Motor Trade’s Reaction To Petrol Price Cut

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 14

BUDGET COMMENT Motor Trade’s Reaction To Petrol Price Cut

(New Zealand Press Association) WELLINGTON, July 22. The New Zealand Retail Motor Trade Association and its members throughout the country were pleased that there had been a further reduction in the price of petrol, its Dominion president (Mr T. M. Battersby) said today. He said the direct effect would be to reduce the cost of motoring, private or commercial, and thus all sections of the community would benefit. “To the private motorist it is of direct benefit and is a further step towards easing the burden of indirect taxation on what is the most highly-taxed section of the community. It is hoped that before long the Minister will see’ fit to take off the remaining 2d of the Is imposed in the 1958 Budget.”

Comment on the Budget by the leaders of other National organisations was:—

Mr J; Roy Smith, president of the Associated Chambers of Commerce: “The Budget does nothing to lighten the taxation burden on productive enterprise or to counter inflationary tendencies. In New Zealand’s present situation, where growth is urgent and important, it is disappointing to find that there is to be no stimulus to either farm or factory production by taxation relief. A reduction in company and dividend taxation would invigorate enterprise and encourage capital investment.

. “If we are really to'grow and develop company tax must be reduced. It is too high. It is discouraging and it has already had, and will cqntinue to have a retarding effect on growth.” Mr D. A. Schnauer, president of the Stock Exchange Association of New Zealand:— _ “The viciously high level of death duty still remajns the greatest deterrent to saving. It enters the danger zone where discouragement of further enterprise emerges and when taxes are too heavy enterprise languishes, and the prospects of additional taxation yields from future profit are reduced.

“In other directions, the Budget makes adjustments and introduces innovations within a limited field which are valuable. This is exemplified by the (easement of capital issues control, the setting up of a board to review discretionary decisions made by the Commissioner of Inland Revenue, and the equipping of the commissioner with discretionary powers in the application of excess retention tax to company incomes.”

Mr H. C. Campbell, secretary of the Road Transport Alliance and the Carriers* Federation, expressed disappointment that the burden of “emergency taxes” as they had been described had not yet been wholly removed from the commercial road user.

Part of the “emergency” petrol tax still remained and this was a discriminatory tax against a section—the road transport operators—that should be completely removed. “The additional sales tax on commercial vehicles imposed in the Budget of 1958, another tax which was described as an ‘emergency,’ is slowing up the necessary replacement of operators’ fleets and causing them considerable difficulty in providing capital

both for replacement and expansion,” he added. Mr W. A. Bascand, president of the Manufacturers’ Federation: “The impact of the industrial development conference upon Government policy is most evident in the Budget. In fact, confidence in the future is the keynote of the Minister’s review which confronts manufacturers with both opportunity and responsibility. The Budget does not open the way for unlimited industrial expansion, but it does give manufacturers a clear indication of the path they can follow. The incentives provided for industrial growth are moderate but encouraging.”

Mr K. -W. Fraser, Dominion president of the Returned Services’ Association: “The N.Z.R.S.A. has noted with very great pleasure the Government's decision to extend the provisions of the war veterans’ allowance, to include those from other Commonwealth forces with the appropriate service and residential qualifications. “We take this oportunity of thanking the Minister of War Pensions (Mr Connolly) for obtaining Government approval for the extension of this benefit. This is a matter pursued by the association for 10 years and we are gratified that the need for this provision has been recognised at last. ’ ’

Mr E. H. White, president of the Retailers’ Federation:

“Businessmen can perhaps be excused for looking at the Budget with a somewhat jaundiced eye. Very little has been done to stimulate the unprecedented growth and expansion referred to by the Minister of Finance. Although the Budget has a number of commendable features the continued imposition of an excessively high rate of company taxation is extremely disappointing. “It is disturbing to note an increase of £11.5 million in capital works and the astronomical sum of nearly £lll million for social services is hardly consistent with the discipline and restraint recommended by the Minister.

“On the other hand, the Government is to be commended on many aspects and on resisting what must have been a very strong temptation to bribe the electors with further inflationary handouts. Such concessions as have been made to individuals, particularly to pensioners and war veterans, will be universally complimented*.”