CUSTOMS TAXATION

Evening Post, Issue 113, 10 November 1930, Page 10

CUSTOMS TAXATION

REDUCTION URGED

FARMERS' VIEWPOINT

FREE TRADE BEST

Tho best means of reducing the.cost! of production was discussed by a meeting of fanners held at Te Aroha on Thursday under the chairmanship of Mr. A. A. Boss, of Auckland,, states the '' Morrinsville. Star.'' Captain Colbeck, -of Morrinsville, moved:— ; That this meeting calls upon th« Government to immediately commence the reduction of Customs duties upon the neeessitifis of life and: means of production. Speaking in support of the motion, the mover,stated that the farmers' vote could swing New Zealand if it was' united, but farmers had ,to be convinced, and that was his aim in moving1 the motion. Leaving farming out, and looking at the matter as businessmen, when they got down to selling at cost their only hope was then to cut dowa overhead expenses. Farmers were selling below cost, and their only way, ai they could not increase, the price received for their products, was to cut down Customs costs. ; They desired the right to buy> freely in London, where they sold, and then they could make a. handsome profit. The man who made clothes was protected to the extent of 25 per cent. His raw material was cloth, but he had to pay a' tax of 29 per cent, before he couid get his raw material in. Under Protection everyqna was paying tribute to someone else. Behind every protected industry was the ghost of an industry which had. been killed. New South Wales under Free Trade had more people engaged ia secondary industries than Victoria with. Protection. As spokesmen for the Farmers' Union; the speaker and Captain Bushworth had issued a. challenge in the Auckland Town Hall for anyone to disprove their figures on , FreeTrade. Protectionists would not "have lot them, get away with that chailengo if there was any possibility of refuting them. They proposed, that tariffs b« abolished over a period of ten years. PENSION THE WORKERS OFF. Captain H. M. Eushworth, M.P* stated that if protection were removed; from the woollen, boot, and clothing industries the workers could be pensioned off and the Dominion, would save £334,000 per annum. That statement had never been controverted. Tha Arbitration Court had developed excrescences, and only a, short time ago it had spent two days deciding whether spreading raspberry jam on tarts-was a skilled occupation,or not. (Laughter.) The Protection ring was broken because the.farmer had to export, and sell ia the world's market, and in consequence the whole burden of Protection fell oa his Bhoulders. Speakers stumped the country saying that' protective taxes amounted to only Is 6d per head and no one should jib, at that. This figure was under-estimated, but even taking it at Is 6d it meant that £4,----875,000 was paid per annum, which, was a burden of £93 15s per head oa tho 52,000 primary producers. Sand was being thrown in the eyes of the farmers, and they must keep' on battling away. Mr. Shallue thought that Captam Eushworth had touched on'an important subject. The easiest way to ■get-what''they-wanted' wr-- ■• ...""• trade with Britain. He suggested -Mi amendment to tins uiu«;. Ed on Britain and should Inafc country. 4 ■Captain Colbeck stated thnt at tho moment they wore only., dealing with, tho tariff on the necessities of iiie. Mr. W. H. Allen held that tho most vital matter affecting them-was a gradual reduction in the cost of living. People would have more to-spend, and trade would be freer if they could reduce costs. THE WRONG WAY ROUND. Mr. Hawkcstated that in his opinion Customs taxation was income tax the wrong way round. It was wrong as it bore too heavily on the family man. If the Customs taxation paid were put on in a lump sum, like- tho unemployment poll tax, so that people could see what they paid, there would be a revolution in the .jSw^^iibn. An agricultural country Uig^Jfw Zealand should reduce Customs'. taxation in order to reduce costs. , ' ~ -' . ' In summing up, the, chairman, pointed; out that if the cost of living' was raised, t'*; the cost of production followed. To^Hfc in a position to compete- in the world's markets they should aim to reduco production costs to the lowest level.! ..-...' Mr. Leesou stated that New Zealand -farmers got the lowest price of any farmers in the world for their butter when costs of production were considered. Captain Colbeek was winningl him over by degrees, and if they could increaso the list of free goods year by year he' would become a complete eon* vert. (Loud laughter and applause.) In reply, Captain Colbeck stated'that" for every £1 the Government got ia Customs taxation it cost the country; £3. It thus meant losing £1 to gain £2, and so the revenue could be made up in a less costly way. They; were dealing with the cost of producing butter, meat, and wool. The essential , thing was that exporters should make a living, and to do that costs must be reduced. ' , The motion was carried unanimously! amid applause.