THE BUDGET

Evening Post, Volume CXXVIII, Issue 29, 3 August 1939, Page 11

THE BUDGET

EFFECT OF NEW IMPOSTS

MANUFACTURERS' VIEW

KEEPING DOWN COSTS

"When asked to comment on the Budget, Mr. W. H. Stevens, president of the Wellington Manufacturers' Association, stated that it was not his original intention to make a statement to the Press, but that representations were .to be made to the Government ,on the subject. It was hoped that representations made by the Wellington Manufacturers' Association would re- ; ceive the careful consideration of the Acting Minister of Finance before the Appropiriation Bill was passed by Parliament. Unfortunately, however, Mr. H. B. Duckworth, president of the New Manufacturers' Federation, A»ras reported to have said, when asked about the Budget, "there is nothing in it of particular interest to manufacturers." "If that is the considered viewpoint of the federation, as indicated in the statement referred to," said ; Mr. Stevens, "I have no hesitation in saying that the^ Wellington Manufacturers' .Association, which represents nearly . aSI the manufacturers, in the' Wellington province, cannot subscribe to that viewpoint. It should be pointed out that Mr. Duckworth has no authority to voice the opinions of the manufac- j turers of New Zealand, as the Welling- j ton Manufacturers'. Association has withdraAvn its affiliation to the federation. "To say that manufacturers have no particular interest in the Budget is definitely incorrect, because our interests .and the interests of the whole community, will be vitally affected. "Manufacturers are not a 'thing apart', ,But are an essential and robust part of the community. They prosper or otherwise according to general financial and business conditions of the Dominion, and are particularly concerned at any measures which will increase the costs of production and distribution and thus decrease the buying power of the public. / MR. NASH'S. ARRANGEMENTS. "I should say that manufacturers are' perhaps, more vitally concerned in the provisions of the Budget than any other section of the community, because it is reported that Mr. Nash has made arrangements with the English manufacturers that only industries which- can hold their own are to be allowed, under the new credit arrangements, to operate in New Zealand. Therefore, cost of production and distribution Avill determine whether industries are 'economic,' and we as manufacturers mttet do all we can to oppose any measure which will increase costs b and make it impossible for us to compete with similar imported manufactured goods. We must consider not only ourselves but also our employees, who trust us to provide employment for them and their families. "I: do not propose at this stage to comment in detail on the effects of the Budget on our manufacturing industries, and.perhaps:need only mention the .increased .petrol tax, three-fifths of which, I understand, .' Mr. Sullivan stated would be carried by the conimercial community; the increased company tax; which will have a restraining effect on company formation and administration; and. the increased income tax on indiAriduals, which Avill direct more -money from investment channels to the Government coffers."