BUDGET PROPOSALS

Dominion, Volume 22, Issue 266, 6 August 1929, Page 8

BUDGET PROPOSALS

“DANGEROUS TO THE FARMER” EFFECT ON RETAILERS Reluctance to make any comments on the taxation proposals contained ill the Budget and their probable effects was shown by representatives of different interests approached yesterday by a “Dominion” representative. Bankers are among those who do not choose to voice their opinions. Charge On Retailers. Opinion among retailers is that the increase of one per cent, in the primage duty on all imports will prove to be a direct tax on the retailers. Prices of goods have become fixed in the public mind, they say, and retailers will not be able to pass the charge on to the general public. Consequently the retailers consider they will have to bear

the burden and set off the tax against their profits. Motorists Complain. The proposal of the Prime Minister that expenditure on main highways adjoining railways should be diverted, and the possibility of the revenue from the petrol ‘tax being applied to other uses, are not meeting with the favour of motorists. The secretary of the Wellington Automobile Association and North Island Motor Union stated that such measures would bring a violent protest from the motoring public. The matter would be discussed at a meeting of the union to be held next week. “Hindering, Not Helping.” “The whole Budget, so far as the farmer is concerned, will not tend to help him, but only to hinder him,” said Mr. W. Perry, of Masterton, president of the Royal Agricultural Society. He said there was a danger of the farmer not putting the same energy into his work as formerly, and probably he would not employ so many men as in the past. The position of the farmer was not going to be improved if his impQjvement brought taxation. The proposals particularly affected the big farmer—not necessarily the stationholder —who employed from ten to twelve men, and whose working expenses absorbed much of his profits. Mr. Perry quoted his own case, and said that he had to pay £1 per acre for wages, while his general working expenses were very heavy. The Budget proposals, he said, were dangerous for the farmer. LAND TAX PROPOSALS CLOSER SETTLEMENT THE OBJECT Dominion Special Service. Palmerston North, August 5. That closer settlement of land was largely behind the Government proposal for increased land tax on larger estates, was the view expressed by the Minister of Industries and Commerce (Hon. J. G. Cobbe), speaking at Hunterville to-day. The Minister had gone to Hunterville to open officially the new Town Hall. 1 Making brief reference to the Budget, the Minister said the Government did not desire to deal unfairly with any landholder, and hoped that every purchase of large estates made would be the result of negotiation. While the Government would seek an authority to acquire compulsorily suitable lands where other means failed, it was the desire of Cabinet to avoid the use of compulsion as much as possible. It was universally recognised that more and closer settlement was necessary for the abolition of unemployment and the prosperity of the Dominion. THE PRIMAGE DUTY CONCERTED ACTION PROPOSED Palmerston North, August 5. The doubling of the primage duty has apparently caused some concern, and, judging by a telegram received in Palmerston North, the importers are considering making some movement in the matter. The following is the telegram, which is from the Associated Chambers of Commerce“ Please consider proposed increase primage duty from one to two per cent., and advise views promptly, so that concerted action can be taken if necessary” The president of the Palmerston North Chamber of Commerce, Mr. M. H. Oram, states that the matter is being submitted to a number of the leading importers in this town for their consideration, and that if the course is warranted, a special meeting of the chamber will be called. DUNEDIN PROTEST Dominion Special Service. Dunedin, August 5. The Import Committee of the Dunedin Chamber of Commerce to-day considered the matter of the primage duty, and it was decided to send the following telegram to the associated chambers: “In view of the fact that the imports for the five months ended May 31 show an appreciable increase over those of both 1927 and 1928 for the same period, we consider that by the end of the year the deficit in the Customs revenue would be automatically wiped out. We strongly protest against the additional primage, which in many cases cannot be passed on, and are of the opinion that the Government could economise in many directions.”