NEW ZEALAND'S FUTURE

Evening Post, Volume CXXVI, Issue 143, 14 December 1938, Page 12

NEW ZEALAND'S FUTURE

COSTS AND TAXES

CAUSE OF ANXIETY

A BUSINESS VIEW

(By Afer Mail, from "The Post's" London Representative.) LONDON, November 17. "Whether, in adverse times, a small country* like New Zealand can stand such a ftdrain (as the Social Security Act) on )its resources, must cause much anxiety V*o all thinking people within its boundaries and elsewhere," said the Hon. Edmund W. Parker, chairman of Dalgeity and Company, at the annual "meeting today. He added that the Act would cost New Zealand someSthing like £20,000,000 per annum when in full use. Commercial*' firms were already feeling the effect of rising octets and high taxation. Dalgety's expenses had increased as a result of recient legislation. "And," he added, "even now we do not know quite where we are." There was .no doubt, the chairman said, that the jpresent Government had received a direct mandate from the people in support of its policy, and'it ■was only to be hoped that it would use it wisely and with moderation. "How the Government will use its immense power in the handling of the country remains to be seen," the chairman continued. "It has been favoured during its term of administration with prosperous times." Mr. Parker said that there was practically no inquiry for land in New Zealand and thasfc very few sales had been reported. AUSTRALIA'S OUTLOOK. Of Australia, he said: "Economic activity during the past year has continued at a high .level, despite the international situation and the great reduction in the wt>ol cheque, but of course some dimin&ution of prosperity must be looked for the current year, owing to the natural sequence of a reduced spending*; power which is bound to follow. ... "Without being unduly pessimistic, I therefore do not think that the Commonwealth is in for such a prosperous year as last. Money lhas to be found for national defence afsid the Government has passed a national insurance scheme which will takSe a very large sum of money to finance." Dealing with production, Mr. Parker said: "New Zealand has. again enjoyed a prosperous year. Prices for the Dominion primary products, with the exception of wool, have been on a high scale, and this has resulted in heavy buying of imports." He quoted trade figures for the year ending March 31 last as revealing a drop of £5,671,000 on the £12,614,000 favourable trade balance of last year. PREPARING FOR LEAST TIMES. Dealing with the results fbr the year. Mr. Parker regretted that the price of: wool had not been maintained. This, coupled with droughty conditions in | Australia, had affected resulfe adversely, ahd the directors felt it incumbent to recommend a reduced final dividend. - . .«, + "However," he continued, "6 rper cent., for the year is a fair return when you realise all the difficulties we h{ave had to contend with both in the Commonwealth and the Dominion —more so in the latter where our expenses have increased as the result of recent legislation. . . "It behoves us then to make provision for lean times and I can assure you that everything is being dome in that direction that can be done, and your company today stands on very solid foundations." Commenting on the balance-sheet and profit and loss account, the chairman said that, on the credit side, cash showed a decrease of £740,137, due to assisting drought-stricken clients, restocking operations by clients whose drought-stricken properties had had relief, and payments on account of new premises. „„„„, . English taxes were up by £6304, due to provision for the National Defence contribution. This figure was for the whole year and not for a quarter, as in last year's figures.