Labour’s tax policy

Press, 21 August 1978, Page 16

Labour’s tax policy

Sir, — Cedric Mentiplay, a veteran conservative journalist on all matters political, fails to acknowledge or perhap recognise that the Labour Party’s taxation policy is the first real attempt to restructure the country’s taxation system. For this reason alone it deserves support. Under the present system those who suffer most ar . the ones who can least afford to, and those who are prepared to work hardest for the welfare of their families. One should not forget the elderly, who for the first time ir their retired lives, are now paying tax. — Yours, etc., D. STEWART. August 15, 1978.

Sir, — There has been some debate over the impact of Labour’s proposed foreign exchange surcharge on the cost of living. I think that I have found t’..e answer and from the horse’s mouth. Mr Muldoon in his book, “The Rise and Fall of a Young Turk,” (page 96) claims that the effect of the National Government’s 19 per cent devaluation was about 1 per cent. From that, one can calculate that a 10 per cent surcharge would have an effect of about | per cent on the cost of living, unless of course Mr Muldoon’s calculation is incorrect. — Yours, etc., A. J. McGIMPSEY. August 17, 1978. Use of native timber Sir, — Rather than take positive steps to increase native timber prices, the Government has decided to seek the removal of price controls (“The Press,” August 16). Previous attempts to increase native timber prices have been overshadowed by inflationary increases in exotic timber prices. Unfortunately, removal from price control may only mean a shift in control from the Department of Trade and Industry to the sawmillers themselves who have a vested interest in promoting native timber sales. Removal from price control may also not produce increased prices because demand is slack on account of the economic situation, and the Minister’s recent decisions on the West Coast will ensure supplies for some years as the forests are being destroyed. Native timber is still being used wastefully on a large scale in Canterbury despite the availability of suitable

alternatives. Removal from price control may not produce sufficient economic incentives for wastage of native timber to be reduced. — Yours, etc., A. H. BUCHANAN. August 19, 1978.