N.Z. Country Party Announces Election Platform

Press, Volume CVIII, Issue 31864, 17 December 1968, Page 34

N.Z. Country Party Announces Election Platform

(New Zealand Press Association) NEW PLYMOUTH, December 16. Major tax reforms, a conversion of most of the Government’s service departments to independent corporations, labour reforms including the abolition of compulsory unionism, and the establishment of a written constitution and an Upper House, are included in the policy of the New Zealand Country Party, announced todav.

: The party’s policies were designed to cater for “those urgent na- ■ tional needs,” for in- : creasing production, } reducing costs, safe- I guarding living standards and defending responsible freedom,” said the party’s leader, Mr C. S. Emeny, ( of Stratford. “We must release the natural energies of our people from bureaucratic domination to make lasting progress. These policies are concerned with sound principles only, and not with political popularity,” he said. The party’s policy has a five-pronged attack. Taxation Reform Widespread studies had i proved that the country’s pre' (sent tax rates were too high and that the system was too complicated and expensive to operate, said Mr Emeny. This was crippling farming and business operations everywhere and was depriving professional men of just rewards for their specialised services. It was also destroying both personal incentives and economic security for people on salaries and wages. Substantial revision of the whole system, and reduction of the tax burden was urgently needed to finance expanding production and serIvices, to avoid widespread } unemployment and to reduce the cost of living, said Mr ! Emeny. ! Reforms suggested by Mri Emeny include: Abolition of death duties . . . “to stop the present drain of working capital from farms and business enter- } prises; far more suitable i methods are available to I governments for the re-

straint of monopoly power.” I Abolition of gift duties (“what people do with their earnings left after taxes is their own private concern.”). A reduction in income tax of 20 per cent in two stages of 10 per cent. I Mr Emeny said the reduction was essential to maintain agricultural production and other vital services without the steeply rising costs of expanded borrowing. “Both National and Labour are following the wrong policy of increasing taxes and restricting private economic activity to control inflation. “These tax funds merely expand wasteful government activities which are the true cause of our inflation. A shortage of savings and working capital from this policy forces farmers and businessmen into heavier borrowing, thus raising costs and causing more inflation,” said Mr Emeny. The American experiment of a 10 per cent tax cut under the Kennedy Administration proved conclusively that tax reductions immediately expanded production, advanced employment and held costs. It was highly desirable that New Zealand should gradually change to the “turnover tax” system, now being implemented in West Germany and Scandinavia. Mr Emeny explained the system as one in which spending Was taxed at the retail distribution point, rather than i taxation on earnings, savings land investment. It was a simple, cheap and equitable system to operate, he claimed, and much of the economic buoyancy of West Germany was closely linked to the “natural incentives” of the scheme. “Compared with our expensive and complicated system

it is a dreain world for farmers, businessmen, professional men and wage earners. “This system would revolutionise our capacity for expanding production without the curse of rising prices,” said Mr Emeny. Economic Reform All possible fuel, power, transport and communications departments should be changed into independent corporations, on the lines of the New Zealand Broadcasting Corporation and National Airways Corporation, to “curtail Government expenditure, reduce the demand for taxation and to get higher productivity from the vast resources under Government ownership.” The departments would then be functioning under the same profit and loss system as any private business, would be responsible for their own loan charges, working expenses, taxes and other expenses and no longer a burden on the taxpayer. All import licensing should be abolished and tariff protection of existing secondary industry progressively reduced to nil over five years. “The financial system, industry and trade must be freed from the present, excessive bureaucratic control through Government planning,” said Mr Emeny. Farming must be freed from a growing bureaucratic regulation. Government land development should be replaced by a free enterprise system of putting experienced young farmers on the land and financing them to develop their own farms. The rural section of the State Advances Corporation should become a separate rural finance institution. Self-supporting businesses and consumers must be safeguarded from the dangers of growing monopolies along the lines of anti-monopoly measures; in the United States, Britain, and Western Europe. Labour Reform The party would place the responsibility for losses incurred during strikes squarely on the trade unions. “The scope and destructiveness of trade union violence must be curtailed. Trade union leaders, organisations and members should function under the same standards as everyone else. Unions should be held re-: sponsible, through normal civil litigation, for financial losses caused to firms and farmers from strikes, especially sympathy strike action. They should be freed ffoul compulsory. _ membership . to defend the’ basic human right of voluntary association. Social Reform Any solution to the country’s growing social problems requires a movement from State welfarism towards a maximum parental and individual responsibility. “Parents must be free to accept responsibility for their children’s education, receiving from the State a pro rata.

per-pupil rebate of taxation, in voucher form to be allocated to the school of parents’ choosing. “People should be free to contract out of Government health and old age pension schemes and receive a rebate on their own taxation. . . .

Government health and pension scheme charges must be kept from income tax . . . these schemes must function within the funds collected or the charges be increased. “Government welfare should be confined to the genuine needy and infirm. All others should be encouraged to make self-reliant provision for their health, superannuation and personal needs.” Political Reform A written constitution and an effective Upper House were necessary to remove the many undesirable influences of party policies. Members of Parliament would then be freed from party restrictions and would enable the legislature to regain the capacity for effective and dignified Government. “A written constitution is urgently needed to defend the citizen from overbearing bureaucratic power. Its provisions must safeguard responsible individual freedom, impartial property rights and local body government, and preserve the sovereignty of electors between elections. “Under 'these safeguards a longer term of Parliament would be an advantage ... a constitution wjll place clearly defined limits on the power of the Government.”

Research Ship.—The Russian research vessel Palameda arrived in Wellington yesterday from Antarctica to take on stores, fuel anti water. She will sail, about Thursday.— (P.A.)