OPPRESSIVE TAXATION

Evening Star, Issue 23340, 9 August 1939, Page 14

OPPRESSIVE TAXATION

FARMERS PROTEST MASS MEETING AT MILTON [Special to the * Star.’] There was an attendance of over 60 farmers at a meeting called under th? auspices of the'Milton branch of the New Zealand Farmers’ Union at Milton last night. • Mr A. Tweed, president of the branch, was in the chair, and amongst those present was Mr 11. H. Michelle, immediate past president of the Otago provincial executive. The Chairman expressed pleasure at the largo attendance, and said that this showed that farmers still took an interest in their farms. The Chairman said the meeting was called as a protest against the proposed increase in taxation and to discuss suitable methods of protecting their industry. During the past season many farmers had found difficulty in making ends meet. What was wrong? Prices for dairy produce, lamb, cross-bred wool, and grain were quite, good, but the whole trouble lay in the increased cost to be • met by the farmer. On small farms on good'country they had come out not so bad, but on hill country and runs the past season had been disastrous. A sympathetic Government, knowing this position, had set up a commission to go into the question, and yet while this commission was sitting it had deliberately brought down new taxation proposals from which.these men could not.escape. It was a proper “ knock-out.” The question to be considered was, “ Could the industry stand it?’* _ Were they going to sit still and see their assets disappearing? They had, however, to take a broad view and consider the effect it had on every farmer, especially in the high country. They had a lot of sympathy with those with stock snowed in, and this increased taxation was ridiculous. If they reduced the Public Works expenditure by £2,600,000 it would help a lot towards defence, for which the new taxation was going. They had to be united in their protest and, gain the support of the chambers of commerce, motor associations, and all other branches. Mr 11. H. Michelle said the taxation was another pinch in the farmer’s ear. and if they did not protest they would get still more. It was said that farmers only used 20 per cent, of motor cars, but their responsibility did- not. end there._ They used petrol for cartage to factories, freezing works, for lime and other work-on the farm. The increase in petrol tax would mean about 3s 4d a day extra. They had been advised to use mechanical contrivances on their farms to produce more, and this was the sort of thing they had put across them. He did not know what the farmer was going to do. Petrol was used for milking machines, shearing, and many other things on the farm, and if they did. not protest, goodness help, them. They could protest in many ways. The recent snowstorm showed what a fix the town people could be in. If they stopped sending produce to the towns fo.r a month it would .make them think. They could stop sending stock to Burnside, cut out their telephones, their rural delivery, and the wireless. It would not hurt them,, although it might be inconvenient. It would make the authorities think; but it was no good one or two, doing these things—they would have to be unanimous.

At this stage a letter was read from Mr R, S. Thompson, president of the Otago Provincial Council of the Farmers’ Union. He apologised for his absence, and in the course of the letter said that every farmer who had studied the Budget must realise that mounting taxation affected his financial position, and that if every effort was not made to. reduce these taxes the future was not pleasant to contemplate. This year’s excessive state of taxation meant that about one-third of New Zealand’s production would be taken from the people in taxes. How could the farming community expect fo be prosperous under these conditions? - The Government would, take from the taxpayer money that could be spent to far better advantage by the individual. By the end of the year the national debt of this country of only 1,600,000 people would have reached £320,000,000, equal to an average of £2OO. per head of population—the highest: in , the Empire. Figures for last year were: Australia £lB5, England £176, South Africa £127, and Canada only £63. New Zealand State taxes for the year 1913-14, £5,918,000, increased last year to the formidable figure of £37,767,000. The average taxation for a family of four was £2l in 1913-14, but this year would exceed £loo—almost a five-fold increase in 25 years. To give some idea of the drift that had taken place in the farming industry during,the past two years, farmers and stock and station agents owed £2,649,000 more to the banks in March, 1939, than in March, 1937—a position that must be largely due to excessive taxation and rising costs. A general and very free discussion followed, in 'which several present said that those who went on strike seemed to he listened to.by.the Government. “ Sit-down ” and other strikes were suggested, but the meeting generally was of opinion that some concerted action should be taken. Finally the following resolution was carried unanimously : “ That this meeting of farmers takes strong exception to the continued increase in taxation, and views with alarm the recent impositions, especially in the matter of petrol and income tax, and feels that the position has become so serious that unless relief is given they will be compelled to take drastic action.” A further resolution that the above be sent to the Prime Minister,_ the Otago Provincial Council, the Dominion Executive, and all branches of the union was also carried.

it was also decided that steps be taken to draw up a petition for circulation amongst all farmers in the Dominion, protefiting against hospital and land tax and the increased petrol tax,

the Provincial Executive to he asked to prepare the petition. During the course of. the discussion much opposition was expressed to the hospital taxation, it being considered that this was covered by the social security tax, ; The opinion expressed by many present was that costs should come back to put farming on a sound footing. They were told by the Government, however, that this would not be so, and they had to try to get relief in some other way.

Diplomatic relations have been re* snraed between, the Vatican and Uruguay after a break of 28 years, '