AVERAGE TAX £36 A HEAD

Dominion, Volume 34, Issue 124, 19 February 1941, Page 6

AVERAGE TAX £36 A HEAD

Only £9 Of It For War

REVIEW BY AUCKLAND COMMERCIAL LEADER

Dominion Special Service.

AUCKLAND, February 18.

Problems confronting commercial and industrial interests arising from the war and other influences were reviewed by the retiring president of the Auckland' Chamber of Commerce, Mr. N. B. Spencer, in his address at the annual meeting.

Referring to Ute action of tlte Government in issuing fourth period import licences for the sum of many millions of pounds in excess of sterling available with the intention of straightening finances by allowing no carryover beyond December 31, .Mr. Spencer said that if the Government had been frank, a great deal of ill-feeling would have been avoided and New Zealand would not have laid itself open to allegations of bad faith which were beard so frequently from British manufacturers.

Taxation had reached undreamt of figures during the past year, continued Mr. Spencer. In 1925-26, taxation amounted to £l2/8/- a head of population. For this year, it was estimated it would amount to £36/13/4 a head. “Lt is recognized that in time of war taxation must be heavy, but when it is realized that of this £36 13/4 only approximately £9/6/8 is for war purposes and the balance is for social services and public works, it is obvious 'something is wrong,” he stated. He thought the business man had a right to protest when industry was being crippled by taxation for the purpose of carrying on social services on a peace-time basis. The position bad been accentuated by the compulsory loan and in many cases businesses had to borrow to meet those liabilities. I’eace-Time Hours.

The greatest problem, however, continued Mr. Spencer, was that of production. “So far we are the only country in the Empire which has made no serious attempt to deal with it,” he said. Production depended largely on hours and conditions of labour, but after about 18 months of war New Zealand was still hoping to win with peacetime hours and conditions. Statistics showed that to make up for the men who had entered the services, those remaining in industry would have to work four hours longer each week. If this extra time were paid for at ordinary rates, there would be no need for bonuses to meet the increased cost of living. “Something will have to be done and done soon to tackle this problem if we are to avoid serious economic trouble,” concluded Mr. Spencer.