GOLD EXPORT TAX

Dominion, Volume 33, Issue 3, 28 September 1939, Page 11

GOLD EXPORT TAX

Mr. Bodkin’s Criticism

EFFECT ON PRODUCTION

Strong objection to the increase in the gold export tax was made by Mr. Bodkin (Opposition, Central Otago) during the second reading debate on the War Expenses Bill in the House o£ Representatives last night. Mr. Bodkin contended that the extra tax would discourage production of a commodity that might become the only means of buying goods from other countries. ‘‘The only commodity that is interchangeable throughout the world at present is gold,” said Mr. Bodkin. ‘‘Whatever the Government can do to increase production of gold in this country it should do, and I take strong exception to the increase in the gold export tax because it will discourage production. The tax will fall most heavily on those companies that are not able to pay their way. Gold is one of our most important commodities, but the present tax has already curtailed production. Taxation should be placed on profits.” Otherwise, said Mr. Bodkin, he had no fault to find with the taxation proposals of the Government. Investors would come forward willingly with loan money, but only if they were satisfied about the stability of the country. It was therefore necessary to avoid as far as possible the use of inflationary Reserve Bank credit, and to raise loans in the orthodox way. “Lenders are not concerned with the rate of interest,” he said, “but they are concerned with the safety of their capital, and it is necessary for the Government to avoid waste.” Work in Industry. There should be no fear that the curtailment of public works and other expenditure would put men out of work, said Mr. Bodkin, because there was work for every man in industry. An intelligent survey of productive resources should be made, and this would entail a national register. “Every man not needed for defence should be placed in industry,” he said. “There is only one limit to our market now, and that is the limit of our production. The Government should take the gloves off to anv union that is not prepared to do its job.” A voice: What about the farmers? Mr. Bodkin: They will do their jobs even if it means 50, 60 or 70 hours a week. If it is necessary for the Government to take a strong stand against those who will not do their full share, I hope it will do so.