EXCESS PROFITS

Evening Post, Volume CXXX, Issue 129, 27 November 1940, Page 6

EXCESS PROFITS

FINANCING OF WAR

INDUSTRY NOT TO SUFFER

MINISTER'S PROMISE

-(By Telegraph—Press Association.)

CHRISTCHURCH, November 26.

Addressing the New Zealand Manufacturers' Federation, the Minister of Industries and Commerce (Mr. Sullivan), who opened the conference at Hanmer, discussed expansion of industries and praised manufacturers for the progress made.

He invited manufacturers to meet him and Mr. Nash in conference on the position of manufacturing industries as affected by the excess profits tax.

"I know that some of you are exercised over the operation of the Excess Profits Act and fear you will be unfairly taxed," Mr. Sullivan said. "Nothing is further from the mind of the Government. We are anxious that the legislation shall not be administered in a way that is going to restrict or retard either extension and development of existing industries or the creation j and successful establishment of new in:dustries in the future. That sacrifices are necessary will not be gainsaid but the creation of unnecessary hardship is not the desire of anyone."

Mr. Sullivan said that the Government had to find £40,000,000 for financing the war next year, half of which must be found locally and the remainder advanced by, the Imperial Government.

"The most important job at the moment is to get money to carry on the war. I have discussed the question with Mr. Nash and he agrees with me that the legislation shall not be administered in a way that is capable of restricting or paralysing the development of industry. The committee which has been set up to review the decisions of the Commissioner of Taxes will be open to anyone on any grounds but in the meantime I invite your executive to send a delegation to meet Mr. Nash and me early in January to discuss the whole question of tax affecting New Zealand industries and thrash the matter out from beginning to end.

"I think I can give you an assurance now that if the Government cannot show that industry will be able to carry on successfully in spite of the operation of the tax, then steps will be taken to alter the position in fairness to the manufacturers."