TAX RISE “NO REMEDY”

Press, Volume C, Issue 29702, 21 December 1961, Page 19

TAX RISE “NO REMEDY”

Incentive Almost Eradicated "The Press" Special Service AUCKLAND, Dec. 18. An increase in taxation to cut down consumer demand was not the remedy for New Zealand’s economic ills, as had been suggested, the retiring chairman of the Auckland Stock Exchange (Mr W. J. Sandman) said at the annual meeting. Penal taxation on those with the ability and knowledge to do most for the country had almost eradicated the incentive for growth and savings. Over a period of years, through the development of semi-Government and producer organisations, there had been no encouragement for the trader, the man who was prepared to take risks and to market New Zealand goods anywhere in the world where he could find a buyer. It was noteworthy that many companies had considered it prudent to carry unusually high stocks of raw materials because of the uncertainty of the overseas funds position, together with the relatively short life of Parliament between elections. Successful Issues During the year there had been many successful issues by existing and new companies. “It is of particular interest that many old-established family businesses have considered it wise to protect tiheir shareholders’ interests by having their shares quoted on the stock exchanges,” Mr Sandman continued. Of these, probably the most important to secure official listing in recent years was Wilson and Horton, Ltd, proprietors of the New Zealand Herald. “Other prominent private or family companies are in the process of widening their shareholding,” he said, “and it is to be hoped that we will see the shares of many more of these successful companies quoted on our exchange.”