EXCESS PROFITS

Manawatu Standard, Volume LX, Issue 263, 4 October 1940, Page 6

EXCESS PROFITS

OPERATION OF BILL.

POINTS ELUCIDATED.

(By Telegraph.—Special to Standard,) WELLINGTON, Oct. 4.

The existence of a three-page memorandum explaining the Excess Profits Bill, which wa6 introduced in the House of Representatives to-day, caused the Alinister of Finance (Hon. W. Nash) to curtail answers to the many questions regarding the measure from Opposition benches, members showing keen interest in the legislation. They were assured by the Prime Alinister that the second reading would not be taken until Tuesday, so that there would be ample time for a study of the provisions, and for making representations from those concerned.

After briefly explaining the alternative methods of ascertaining standard income, and the assessment of excess profit, the Alinister stated that the latter sum would be divided after national security, social security, and the 15 per cent, war income-tax had been deducted., the divisions being in the proportions of 40-60. Air Forbes: Who gets the 40. The Alinister: The State gets the 60. (Laughter.) ■. . , , , Air Pokon: Has the Minister taken into account a point I raised regarding farmers ? The Alinister: Yes, all classes are safeguarded. The first assessment; no continued, was for the year commencing April 1, 1940, the current year, and the income did not become assessable for tax until April, 1941, and under the normal procedure for payment no tax would be paid until February, 1942. NOT THE ENGLISH ACT.

The Leader of the Opposition (Mr Hamilton): Is this similar to the English Act? _ “Oil, no,” replied Air Nash. That act is of sixty pages and they add a page' every sitting.” Regarding the committee which would hear appeals, the Minister stated that it would probably consist of three members, one with the judicial mind, and the others having knowledge of the intricacies of industry. ,• Mr Forbes: Have you tried to estimate what you will get? The Alinister: Well. I hope we will get nothing. I hope we will get no revenue, because that will mean that no one is trying to profit by the war. That is the purpose of the Bill. . Air Doidge: Are farmers involved U tliev produce more? The Minister: They will get paid for their personal exertions, and none of the lower income farmers come in. because everybody getting £SOO or less is exempt. ~ Air Holland raised the question or what happened to a company which took over another one. Would its increased profits be regarded as excess i The Alinister replied that alterations in capital would be taken into account. The assessment would be based on actual capital employed, not the subscribed capital. POSITION OF FARMERS.

Air Kidd: The prices paid to farmers arc fixed. If farmers are going to produce more and throw their weight behind increased production, working longer hours and spending additional capital, will they be charged excesn profits ?... ‘ “No,” replied Air Nash. “The Commissioner can determine the allowance for personal exertion.” Air Kidd 'remarked that he knew of one farmer who barely made ends meet last year, and now showed an income of £l5O. How would be get on ? The Alinister: He would be mile* outside because he must get £SOO beIfoxe the legislation applies.