TAXATION COMPARED

Evening Post, Volume CXXVII, Issue 19, 24 January 1939, Page 7

TAXATION COMPARED

ENGLAND AND NEW ZEALAND

ADDRESS TO BUSINESS MEN

(By Air Mail, from "The Post's" London

Representative.)

LONDON, December 5,

Not "What do .yoa think of New Zealand?" but "Why <jo> you think .of New Zealand?" -was the question asked by Mr. W. J. Jordan, the High Commissioner, when he addressed the Oil Industries Club. Some people were interested in New Zealand because of it^ social programme, he said. Others were annoyed witl^ the social programme Because they feared it would interfere with their investments. They knew of New Zealand onljr as a place in which to invest money, and there had been some criticism because these things cost money—although at the same time he had had scores of letters of appreciation of what was being done in the Dominion. Taxation in New Zealand was about £23 per head, and no doubt that sounded terrible. He heard somebody say colossal—(laughter)—and it did t seem heavy. But what was included in that charge? Taxation in Britain was given as £17 per head; but there were two forms of levy in both countries —national taxation and local body rating. In New Zealand the whole'of the cost of the police, justice, education, and the major part of the charges of health and social services were all in the national tax. That was not so in Britain. Mr. Jordan instanced a house in Onehunga costing £1800 in* a quarter-acre section near a park, the local rating on which (including water rate for house arid garden and everything else) was £9 I.os per annum. In Britain the rating would be four or five times that amount. If they were to add to the taxation per head of population in Britain the local body rates, and compare it with the total charges in New Zealand, they would find that the New Zealand, taxation was far less. ' Referring to the provisions of the Social Security Act, Mr. Jordan said that the money that would be used for the benefit of the people was money in circulation amongst the shopbkeeper. the manufacturer, the farmer, arid the warehouseman. Today one • of the greatest troubles in the world was the feeling of insecurity on the part of the people, whether in the home, or in investment, or in the nation. That feeling was causing trouble and harm, and it came largely from unemploy-. ment which raised a spectre of. fear. He explained how under the New Zealand Act this fear of want,' sickness, and poverty was removed from those who were worthy of consideration. All the main provisions of the Act were explained. New Zealand, he said, was well able to meet her liabilities. Six month* of the present financial year had passed and the figures were keeping closely to the estimates. It was expected 'that the financial year would end with la surplus of about £58,000,