Greed seen
Companies which gave shareholders pre-Budget tax-free dividends were criticised as “greedy” yesterday by the Minister of Finance. Mr Douglas. In his first public comment on the move by several companies, which anticipated Budget measures removing the tax exemption from such dividends, Mr Douglas told the Manufacturers’ Federation convention in Wellington that he was “frankly disturbed” by the move. “I think manufacturers and others were very shortsighted in what they did,” he said.
“What was gained? One dividend or pay-out, when I hope you are going to be in business for at least another 50,0 r 100 years. “If I move to eliminate tax-free dividends tomorrow you gained the pay-out or dividend. If I don’t move, what you have gained? Nothing, except a demonstration of one sector being a little bit greedy.” Mr Douglas said he hoped the same companies which rushed to make tax-free dividends would not also raise their prices excessively after the Budget. “If they do, I am afraid the Government will have to act,” he said.
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Press, 8 November 1984, Page 1
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171Greed seen Press, 8 November 1984, Page 1
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