N.Z.I.G. says pay less tax

Press, 5 December 1979, Page 29

N.Z.I.G. says pay less tax

PA Wellington ‘‘A major cause of inflation is excessive non-pro-ductive Government spending, and one way to reduce this is not to give the Government so much money 7 in the first place." the chairman of New Zealand Industrial Gases, Ltd, (Mr R. C. MacDonald) says in the company’s annual report. Referring to statements that the introduction of inflation accounting could reduce the total amount of company taxation paid to the Government, he said: “This is certainly true in the short term." Reducing the incidence of corporate and personal taxation would encourage growth, increase investment, and create additional employment opportunities, Mr MacDonald said. “Looking to the immediate future, New Zealand’s problems are daunting: A persistently high inflation rate:

.[Large externa! and internal deficits; High unemployment. In addition we must decide what sort of economic relationship we want with Australia. “Looking further ahead, although we are not over-en-dowed with minerals we do '[ have, by world standards, L substantial energy per capita, and we have other renewable resources that will

be even more useful in the long-term. “The next decade is going, to be challenging, and criti-. cal. The quality of our decisions in this period will de-; cide whether or not New Zealand enters the 21st century amongst the most prosperous nations of the world,” said Mr MacDonald. In the year to September 30. N.Z.I.G. increased sales revenue 18 per cent fo

S39M, and net profit 19 per cent to $2,400,000. The return on averaged I shareholders’ funds eased from 9.7 per cent to 9.5 per I cent. The total dividend is being, increased from 17 per cent to 20 per cent (20c a share) covered about 2.5 times. The company plans to requiring $982,000 ($838,000) make a one-for-eight bonus issue.