Public Pays, But State Company Is Freed Of Tax

Greymouth Evening Star, 9 November 1949, Page 3

Public Pays, But State Company Is Freed Of Tax

WELLINGTON, November 8 (P.A.) —Sales tax and duty on '35 miles of steel piping to be used for the Hutt river water supply scheme, will cost the ratepayers about' £130,000. The British Petroleum Company of New Zealand, in which the Government has a controlling interest, is importing steel piping free of tax. This was reported to the Wellington City and Suburban Water Board today by the City Engineer (Mr K. Luke). “Though some steel piping ‘for industrial purposes’ is being allowed into the Dominion free of tax the Government has so far refuced to allow such a remission in the case of the water scheme steel,” said Mr Luke. He said he had been in touch with the Government department concerned after advice last week that sales tax and duty on the steel piping to be used in the Hunua water development extension would cost Auckland £34,000 a mile. He had discovered the British Petroleum Company was importing its steel piping free of tax. SAYS MAYOR OF AUCKLAND AUCKLAND, November 8 (P.A'.) —“lt is incredible,” said the Mayor (Mi’ J. A. C. Allum) when the Wellington report that the British Petroleum Co. was importing steel piping free of tax was referred to him this evening. “I cannot imagine than any Government in common honesty could take such, action. There is either a misunderstanding or the Auckland and Wellington City Councils have an answerable case.” Mr Allum said that no matter how valuable an industry might be to the community a water supply scheme was equally important. He did not believe the Government would want to exploit the public by charging tax that it was prepared to remit for a trading concern. The anomaly wanted looking into immediately.