Help for Mosgiel

Press, 12 July 1980, Page 14

Help for Mosgiel

Sir, — Your editorial article (July 9), “Taxpayers’ money for Mosgiel,” fosters the modern illusion that money supplied to any industry is a gift. You made no mention of the uncountable millions of dollars that the Government has reaped from this industry during its many years of operation. I refer not only to company tax but also the income tax paid by the workers and management plus taxes charged or. sales, fuel, and transport etc. This huge extra cost to the Mosgiel company is no doubt the prime 'reason for that company’s financial difficulties. A Government hand-out may offer a shortterm solution, but only a reduction in taxation can offer any long-term security to this company and its employees. — Yours, etc., W. H. DALY, . Levels. July 9, 1980. [Direct taxes' paid on company profits and employees’ , incomes, could hardly be described as costs. If all companies were relieved of all kinds of taxation, Mosgiel would presumably be in the same relative and unfortunate position as it is today. A grant of taxpayers’ money to one company may have good purpose, but amounts to a gift nevertheless. If we gave this impression, it is not mistaken. — Editor]