EMPIRE CONFERENCE

Dominion, Volume 4, Issue 1158, 20 June 1911, Page 5

EMPIRE CONFERENCE

« SHIPPING COMBINES. SIR J. WARD ON NEW ZEALAND'S POSITION. DOUBLE INCOME TAX. Uy TeleErapli—Press Association—OowrleM (Rec. June 20, 1.10 a.m.) London, June 19. Tho following further reports of tho proceedings of the Imperial Conference on Friday afternoon have now been made available for publication:— INCOME TAX ANOMALIES.

INTERESTING DEBATE. The New Zealand and South African resolutions regarding the doiiblo payment of income tax and death duties were discussed at the Conference on Friday, and eventually withdrawn. The motions were respectively "That it is inequitable that persons resident in the United Kingdom who, under tho laws of a self-governing dependency, pay an income or other tax to the Government of such dependency in respect of income or profits derived from the dependency should have to pay a further tax in respect of tho same income or profits to the United Kingdom; and, therefore, it is most desirable that Imperial legislation should be introduced to removo tho disability."

"That it is desirable that an under- ( standing be arrived at between tho Imperial and tho Colonial Governments whereby the Imperial Exchequer in claiming payment for Income Tax and Death Duties should allow, a deduction for payments fairly claimed for these purposes in tho colonies." Sir Joseph Ward said ho recognised from Mr. Lloyd-George's explanation at the sub-conference, where the matter was fully discussed, that the proposed change was so serious, so far as the British Government was concerned, as to mako its acceptance impossible. It would bo very advantageous if some system could be arranged to mitigate or obviate the present hardship to income-tax payers. General Botha, Prime Minister of South Africa, said lie was disappointed that so little progress had been mado with the question since the last Conference, and suggested that (he Motherland should exempt persons with small incomes, so long as they resided in one Dominion. The position might bo partly met by extending the principle embodied in the Imperial death duties legislation. If the Home Government was unable to go the whole way. he suggested that where a resident in the United Kingdom hail invested money in the colonies he should pay only tho difference between the colonial and tho Motherland's income taxes. This would stimulate British investment within tho Empire, and diminish tho amount invested elsewhere.

The British Viewpoint. Mr. Lloyd-George (Chancellor of the Exchequer) stated that tho abolition of tho doublo income tax would involve a loss to tho British Exchequer of two millions yearly, and the amount' would tend to increase. Britain was tho world's greatest lending country. She had three thousand millions invested overseas, and if the income tax revenue were made to depend on the amount chargcd in countries where tho money was invested, it would cause the imposition pf another penny, and later probably twopenco on investments in Britain. It was impossible for him to face such a contingency immediately after tho great struggle of 1900. Regarding tho exemption suggested by General Botha, tho amount was small, and the difficulty was administrative. It would be impossible to check the accuracy of the claims, and tho authorities would bo compelled to accept every claimant's statement. General Botha's final suggestion, which was nowadvanced for tho first time, raised a point worthy of consideration. Ho would ascertain if it were possible to givo effect to tho proposal; and would decide later.

General Botlia said he hoped for uniform legislation with regard to the death duties in South Africa at an early date. He suggested that death duties should be charged against Companies only in the country where tliey wore registered. Mr. Lloyd-George remarked that the proposed concession regarding death duties would ultimately cost the British Exchequer two and a half millions a year. Tho provision of tho Finance Act in question was applicable to thirty-five colonies. The arrangement was generally satisfactory, although it did mot appear to work well in South Africa. If tho companies wanted the advantage of the British market, it was only fair that the Exchequer should tax them. Mr. Malan, South African Minister for Education, asked whether Mr. IloydGeorgo would consider a suggestion for paying the difference between colonial and Home taxes in connection with tho death duties, and equally with the Income Tax. Mr. Lloyd-George promised to consider tho proposal, but said it would be a rather difficult matter. COINAGE AND MEASURES.

AUSTRALIAN PROPOSAL DROPPED. A brief discussion took place on tho Australian resolution That, with a view to facilitating trade and commerce throughout the Empire, tho question of the advisabl'eness of recommending a reform of tho present units of weights, measures, and coins ought to engage the earnest attention of this Conference. Sir Joseph Ward stated that personally he favoured the recognition of both sovereigns and dollars, and suggested a commission with a view to considering the possibility of a uniform system. Senator Pearce declared that Australia was in favour of a decimal system. Mr. Lloyd-George declared . that the introduction of the metric system would seriously disorganise trade, especially the cotton trade. A double system of sovereigns and dollars, on tho other hand, would lead to serious confusion. He would not care to undertake tho responsibility of such a revolutionary change. The subjcct then dropped. SHIPPING COMBINES. SOUTH AFRICA'S PROTEST. In the course of the discussion on the South African resolution— "That concerted action bo taken by all Governments of the Empire to promote better trade and postal communications between Groat Britain and the overseas Dominions, and in particular to discourage shipping conferences or combines for (lie control of freight rates between the various portions of the Empire"— Mr. Sidney Buxton, President of the Board of Trade, suggested to add the folI lowing words; "la so far as sucli pom-

bines nro prejudicial to trade." Ho said that he must not, however, .bo considered as liecessnrily agreeing in nil Mr. Graaf's aigumenls or conclusions. They must look at the question from a more general .standpoint. He reminded the Conference of tho Royal Commission on rebates ill 1 'JOG on which tho Dominions woro represented. Neither the majority report, nor the minority report, made very drastic suggestions. They proposed not the abolition of rebates, but the creation of an association of tlioso concerned with certain powers to be conferred by tho Board of Trade. The initiative in carrying out the proposals was largely left to tho parties interested, but shippers, merchants, trades, and manufacturers had not manifested any great desire to press the Board of Trade. liecently ho Jiad invited a conference of the parties interested to meet him and the Hoard of Trado, but tho support which they wcro prepared to give to any drastic legislation was not encouraging. The fact was that there was a considerable difference of opinion as to how far under proper conditions shipping conference;] and tho system they involved were an advantage or a disadvantage to a country's trado, and in view of the magnitude of the mercnnlilo marine, it was not easy to legislate concerning its interest unless ho had a considerable body of opinion behind him. But the Government would keep tho matter under consideration, and watch developments in South Af'ica and elsewhere.

Mr. lirodeur, Canadian Minister for Marine, said that Canada had no serious objection to tho motion, but serious injustico had been done, not by the Shipping Conference, but by tho British insurance combine inserting a clause in policies imposing higher premiums on ships entering British North American ports, than on vessels bound to tho United States.

Stato-owned Liners. Senator Pearce, Australian Minister for Defence, stated that cxporienco had set Australians very definitely against rebates. Legislation in conncction with tho coastal trado hud proved that tho suppression of rebates did not interfere with tho regularity of tho service, tho stability of rates, or other matters beneficial to trade. Tho conference system was a distinct disadvantage to tho United Kingdom. 110 was surprised that Mr. Buxton had not received moro support from British traders with a view to taking action. Tho Royal Commission showed under Shipping Conference lines tho preferential system opera fed in favour of tho United States as against Great Britaiu. It had also disclosed tho fact that the system extended to tho Australian and the general overseas trade. There was a strong agitation in Australia in favour of tho Government owning liners trading between Australia and Great Britain, in order to prevent the producer from being exploited and deprived of tho profits of the market. Ho wished to mention in this contention tho recent Australian mail contract, fixing the rates of freight.

New Zealand Views, Sir Joseph Ward, Now Zealand Primo Minister, said ho considered that South Africa had a substantial grievance to be redressed. Ho supported the resolution, though so far as New Zealand was concerned, ho was unable to agree to all Mr. Graaf's arguments. South Africa had her special difficulties, and New Zealand must also study tho particular needs of her own prople. Owing to tho peculiarities of her trado and position, rebates did not exist for her oversea trade. Many traders were, however, compelled to pay doublo rates for special articles of commerce. Largo refrigerating steamers wero required for frozen meat and dairy produce, and, if tramp steamers were girai ordinary cargo not requiring refrigerating, doublo rates would have to bo paid for frozen meat and dairy produce. He had always insisted on tho smallest producer being placed on an equality with tho largest shipper. Now Zealand had, on the whole, placed her shipping business on a satisfactory footing, but he recognised South Africa's difficulties.

Mr. Grauf, in reply, declared that South Africa intended to proceed until slto obtained reasonable rates and conditions. Tho resolution, as amended, was agreed to.