BURDEN OF TAXATION ON INDUSTRY

Dominion, Volume 31, Issue 253, 22 July 1938, Page 13

BURDEN OF TAXATION ON INDUSTRY

Expansion Held Back

“Several facts in the Budget stand out with alarming prominence,” said Mr. H. H. Higgins, president of the Wellington Manufacturers’ Association. “First, there is apparently to be uo relief from the staggering burden of taxation under which secondary industries are labouring to-day and which is doing as much as anything else to hold back that expansion in manufacturing so vital to the development of the Dominion, “On my recent trip to the north I visited one large factory which had made a profit of £13,000 in its last financial year,’-’ continued Mr. Higgins. “Of this' amount approximately £7OOO was taken by the Government in taxation and £6OOO, or a little less than half the profits earned, was available for distribution to shareholders. “Another disquieting feature is the intimation that on top of last year’s heavy expenditure on public works a further £14,000,000 is to be borrowed for this purpose this year. “How much better it would be for the Dominion as a whole if some of the £20,000,000 to be lavished on roads, railways and public buildings could be used for the development of New Zealand secondary industries. “I was greatly impressed,” said Mr. Higgins, "by the cabled report of Mr. Malcolm MacDonald's speech to the London Chamber of Commerce in which he said: —

“ ‘Our policy should lie to encourage tlie development of tlie Dominions until each has attained first-class status, which involves supporting many more millions than to-day. Population is the basis of power, and the Dominions will never become great simply by pastoral and agricultural expansion. They must develop their secondary industries. which tlie British chambers of commerce must welcome.’ “it is a matter for regret,” said Mr. Higgins in conclusion, "that those who are guiding the destinies of New Zealand to-day do not subscribe to the views expressed by Mr. MacDonald, or if they do it is equally regrettable that so little has been done to implement such a policy.”