PATRIOTIC FUNDS

Evening Post, Volume CXXXV, Issue 151, 28 June 1943, Page 3

PATRIOTIC FUNDS

DONATIONS TAXED

REPORT ON RECENT APPEAL Difficulties experienced by the advisoiy committee of the recent Sick and Wounded Appeal for funds for patriotic purposes were placed before the Wellington Metropolitan Patriotic Committee today in a report from the chairman of the advisory committee, Mr. J. W. Phillips. The appeal met with comparatively little response from business houses, and in the opinion of the committee that was mainly due to the taxation of patriotic gifts. The appeal committee recommended that the Patriotic Committee should take up the matter with the Government without delay, and it was decided to refer the question on to the Wellington Provincial Council for consideration of action. A cheque for £15,U00 from the Joint Council of St. John and the Red Cross as the first contribution from the appeal was received, and other amounts will bring the total to about £21,000. The aim was £25,000. The advisory committee, Mr. Phillips stated, was disturbed at the seeming lack of response to its efforts, particularly from the business houses. A very substantial portion of the money raised actually came from the "man in the street," through Flag Day, which realised £4500, and the postmen's drive, which realised £5000 odd. In addition, the suburban sub-commit-tees gathered quite a large sum by individual efforts, direct donations from householders, etc. "Of the complete amount raised, approximately £4000 only came from business firms, representing donations from about 400 companies, both large and small," stated Mr. Phillips. "In checking over the list of business houses to whom a direct appeal was made we were astounded at the generally poor response, both in regard to the amounts of the donations sent in and also in regard to the large number of prominent business firms trading in the city which did not feel under any obligation to make a donation to j our appeal for funds to provide comforts and amenities for the sick and wounded. "When it is considered that this appeal in reality represented the annual amount which we were asking each of the firms to give to support the Patriotic Fund ... we felt that there must be some good reason or reasons behind the apathy and resistance which we experienced. » "In our considered opinion . . . the main factor which has influenced firmi in refusing to support the Sick and Wounded Appeal is the question Of taxation on patriotic gifts. This contention was supported by Sir Cecil Leys in. his presidential address at the Newspaper Proprietors' Association conference recently, when he stated that 'newspapers would need to make £3 for eyery £1 which they donated to patriotic purposes.' FUNDS FROM GOVERNMENT. "We are also of the opinion that there is a very definite feeling abroad ; that the patriotic moneys generally should be provided by the Government, even if it means additional special taxation to provide the necessary funds. We believe that it is necessary to give urgent consideration to both of these points, because in our opinion they will both have a very

restraining effect upon the future of patriotic funds generally." The advisory committee suggested that the Patriotic Committee should immediately take steps to see that the I matter of taxation was considered by the Government in the light of the committee's experience. | "Unless some definite 'attempt is made to remove the anomaly of taxation on patriotic gifts we are convinced that business houses generally will either reduce their donations considerably or in a large number of cases refuse altogether to set aside moneys for patriotic purposes," Mr. Phillips wrote. "In pur opinion, if the present state of affairs continues a first-rate problem will be created for the various patriotic councils in being able to raise sufficient funds to meet their current expenditure, thus making it most urgent that the taxation question should be immediately and vigorously debated with the Government." Mr. Phillips stated also that while there were certain objections to direct patriotic taxation, the suggestion that that method would be the fairest and most equitable means of collecting money for patriotic purposes was made to members of the committee by a large number of persons. PATRIOTIC PAY SCHEME. The progress made with the Patriotic Pay Scheme was reported upon by the honorary secretary, Mr. Ward. A circular letter will shortly be sent to all business firms in the metropolitan area stating the position now reached and making an appeal for full support of the scheme. Patriotic pay will consist of all employees on wages or salaries voluntarily agreeing to their employer deducting Id in the £ from their wages or salaries each pay day and the employer subsidising it by an equivalent amount. That would mean that the employer would pay into patriotic funds 2d in the £ of the firm's monthly wage or salary bill. The Wellington metropolitan area's quota is 49 per cent, of the Wellington Province, and amounts for the financial year, closing on September 30, to £100,651. To date there is in hand or in immediate sight £54,000, leaving £46,000 to be obtained by September 30. ADVANCE PAYMENTS ASKED. It had been hoped that the patriotic pay scheme would have been in working order in time to make up. the £46,000, but unfortunately that was not possible. Consequently employers are to be asked to make as large advance payments as they possibly can, such advances to be credited against their subsidies for patriotic pay. Already some local bodies and firms have done so. At the same time all district patriotic committees are asked to raise funds during the winter by card parties and other entertainments, and the Patriotic Committee itself will arrange other activities to bring in funds. TWO AREAS MOST SUCCESSFUL. Mr. J. W. Andrews and Mr. J. Annand-Smith commented upon the great success of local efforts at Lower Hutt and Karori, both of which had exceeded their quotas. On the experience of Lower Hutt. where the women had worked most enthusiastically on weekly shop days, it should be possible for ten districts each to average £200 weekly, said Mr. Andrews. The women had shown great ingenuity and initiative in running1 their shop days, and did so without interfering with shopkeepers. It was altogether necessary that the question of taxation upon Patriotic Pay contributions should be determined, said Mr. Andrews. That was ninetenths of the whole problem. He had had placed before him the case of one large employer would could not possibly pay the proposed Id in the £ I under the present position, for it would I take the whole of his profits, unless |he increased prices. ! Inquiries will be made by the hon. i secretary into the posibilities of establishing a patriotic shop at Liberty ! Corner.