MONEY TO DO A JOB

Evening Post, Volume CXXXVIII, Issue 55, 2 September 1944, Page 6

MONEY TO DO A JOB

To reduce taxation' at the present time would, in the opinion of the Prime Minister, be "national madness." The need for high taxation in time of war cannot be denied, and no responsible section of the community has objected to carrying a fair share of the burden. That is not to say, however, that even in time of war taxation cannot be overdone. It is possible that, carried beyond a certain point, it may defeat its own. object. In the case of industry, this point has already been reached, and the concern which has been expressed regarding the effect that taxation is . likely to . have in retarding post-war development is j fully justified. If national reconstruction after the war is to proceed I smoothly and efficiently, industry will jhave to play an important part, and to do that it will need adequate financial resources. Under the taxation ! policy being pursued by the Government, however, industry is being given no' opportunity of building up reserves, and this, together with the absence of any Government plan as to the role it is to play in assisting in' the task of reconstruction, has prevented any preparations being made. The Minister of Supply (Mr. Sullivan) stated that the necessity for providing assistance for industry was fully recognised by the Government and that the Minister of Finance had always been sympathetic and favourable to. the provision of whatever money was wanted for the establishment of industry. That may be so, but what industry wants is an opportunity to make its own plans. Therejs little virtue in a system which denudes industry of its financial resources by excessive taxation and hands part of it back by way of subsidies and credits. In Great Britain, America, and Canada steps have already been taken to assist industry in making post-war plans; in New Zealarid nothing, has been done beyond the small provision for deferred maintenance. Mr. Fraser says it would be a criminal betrayal of the servicemen if they talked of reducing taxation before rehabilitation was complete. The point is, however, that rehabilitation can never be complete until industry is given an opportunity of assisting in the task of reabsorbing ex-servicemen into civil life. The "Minister .of Rehabilitation has just emphasised that the job is one for all—not for the Government alone—but. this will not" work out well if the Government has all the money.