TRADE MISSION

King Country Chronicle, Volume XXXI, Issue 4959, 23 February 1937, Page 2

TRADE MISSION

MR. NASH IN ENGLAND. Reports received from English business houses give details of conversations with the New Zealand Minister of Finance and Marketing, the Hon. W. Nash, in which the Minister has expressed opinions on several important questions affecting trade and finance. On the subject of the taxation of companies, the Minister is reported to have said: "Before I left New Zealand I appointed a committee to inquire into „the incidence of company taxation. Subject of course to its findings, my own impression is that we cannot afford to change the present basis; perhaps there are anomalies, and some folk may be suffering unfairly from the rate of 7s 6d in thepound, but we look to income tax to supply a large proportion of revenue and to alter the present method of company taxation would cost so much as to be impracticable. Regarding taxation generally, I strongly favour taxation at the source." No Alteration In Exchange. Mr. Nash is also reported as saying he could see no possibility of an alteration downward in the rate of exchange, and he was opposed to any suggestion of an alteration upward. "You can take it there will be no change," he said.

"I have seen Messrs. Baldwin, MacDonald and Runciman, who are viewing my ideas on trading agreements with a sympathetic understanding," states a minute of the Minister's remarks. "It will not be beyond our wit to eliminate the fluctuations in the balance of trade which up to present time have caused much distress. I expect to conclude a satisfactory bilateral agreement with the British Government by which they will agree to purchase certain quantities of New Zealand products. We will undertake to provide certain quantities of New Zealand products and we will also undertake to provide the resulting London credits for the purchase of British goods. Rationing of Goods.

"As soon as this agreement is concluded I shall be in a position to approach the various trades involved either through the Board of Trade or by direct contact with a view to assigning proportions for the various British industries involved in the sale of British goods to New Zealand. I recognise that in some cases, such as the steel trade and the cotton piece goods trade, it may be necessary for us to pay more than we are now paying for certain imports. That is a small matter when compared with the advantage of an assured market for our produce. ! "In connection with this proposed 1 bilateral agreement I recognise that difficulties arise with certain countries where it is impossible to assign a direct balance of trade, either owing to the fact that they have nothing to sell us or we have nothing to sell them. In connection with such countries, it will be necessary for us to arrange triangular agreements with Great Britain, the countries concerned and ourselves to balance trading."