NEEDLESS EFFORT

Gisborne Herald, Volume LXXIV, Issue 22512, 16 December 1947, Page 8

NEEDLESS EFFORT

FILLING JN FORMS BUSINESS HANDICAPS WELLINGTON CRITICISM [(P.A.) WELLINGTON, Dec. 15. With the greater national income this is the time for us to be creating reserves, easing regulations and allowing freedom for expansion and activity by the component parts of the country,’ 1 said Mr A. Hamilton, chairman of the Wellington stock exchange in the annual report today. “Instead we find a painfully-slow release from some restrictions and a tendency to increase others, a grudgingly and minor reduction in taxation, the further absorption of business successfully carried on by individual enterprise and a continuous high rate of spending by the Government. “Not only do we have the retention of many State departments which could well have been closed up to release manpow’er for commercial and industrial demands,” continues Mr Hamilton, “but it seems that these are on the increase, so aggravating an already acute shortage.”

Useless Overhead

“To keep these departments occupied we were today, , instead of being en§aged in some sensibly-productive work, usily using valuable time completing a multitude of forms, even to advising that we have little or no staff to assist in compiling them. Taxpayers and the operative part of the community had to support this useless overhead and the present was doubtless the right time for the State to relieve itself of this costly organisation before any change in our national income forced it to do so.”

“Even though it is over two years since peace returned the Government still requires forms to be returned with a mass of information about dealings in New Zealand markets in overseas securities,” added Mr. Hamilton. “The recording of these details creates a useless drag for no productive purpose on labour which could more usefully be occupied in assisting normal business.”

Miner Taxation Relief

While other parts of the Empire were reducing taxation to help the flow of industry the desire remained firm in New Zealand for the State to export as much as possible from the successful efforts of the individual. No reduction was granted in the last Budget except for minor relief to some of the unearned group.

While this highly-unfair form of taxation originated with a previous Government there was no reason why it should be allowed to remain in force. For several years this injustice had been denounced from stock exchange quarters, but when the matter was taken up directly with the Minister two years ago his reply favoured the retention of some higher rate of tax “where the income is derived from property and the element of personal exertion on the part of the taxpayer is not a factor in the production of the income." Penalty on Thrift

Mr. Hamilton said that clearly the hard work throughtout his lifetime of an honest worker who strove to save and avoid being a burden on the State was held by thus general rurt of taxation, thought as worthy of no other consideration than an excessive penalty for his thrift, all the personal exertion of a lifetime counting for nothing. “Too old to continue in active business he must disgorge an additional tax because he seeks a safe investment in Government loans, property, or mortgage loans, while he watches his lawmakers help themselves, by virtue of their power, to new and more extravagant personal benefits to be paid 1 ' for from his contributions,” said Mr. Hamilton.