KAURI GUM INDUSTRY

Northern Advocate, 8 October 1920, Page 3

KAURI GUM INDUSTRY

TAXATION FOR ROADING

REGARDED AS EXCESSIVE,

AN ALTERNATIVE OFFER,

Kauri gum producers, to the number of 13, representing syndicates and companies wpith an aggregate capital of half a million sterling, met in Auckland on Wednesday to deliberate upon the proposed levying of a tax or royalty upon kauri gum for road maintenance purposes.

The chairman, Mr G. E. Alderton, said that the suggested 10 per cen\ tax on gum won from Crown hinds and five per cent, in relation to private lands would have a crippHng effect upon the new extraction processes whiich were now in .their initial" stage,, as the imposts would !b e iin addition to the ordinary taxation now being paid.

It was pointed out by Mr M. H. Wynyard that the 5 per cent, tax on private land production would apply to the whole output and not alone to profits, wihlich- might thereby be reduced fully 50 per cent. Though statements were current that some

rew companies concerned in machinery extraction methods were acquiring fortunes, At had to be considered that new inventions might compel the scrapping of the costly machinery now used. Thds was not at all an unlikely happening, as the systems now followed were lin the experimental stage. No assistance had been given by the Government in the shape of bonuses for the plants best calculated to carry out gum .extraction, although that course had been recommended toy the Lands Commissioner for North Auckland, Mr R. P. Greville.

The following motion was advanced by Mr Wynyard, seconded 'by Mr W. J. Robertson, and unanimously adopted—"That the gum producers are opposed to a royalty or export duty on kauri gum to assist roadmaking in gum districts, as they consider that any charge should 'be in direct relationship to the use of the roads by the industry, and any fixed charge would be a ihardshiip on the new chip gum production; that with a view to providing for the upkeep and improvement of roads used for kauri gum 'haulage, the law should be amended to provide that a local body can charge to persons hauling kauri gum, over the public roads, the sum of 6d per ton per mile on metalled roads, and 3d per ton on formed, but lun-metalled, roads, the council havfrng power to require returns to be made, and 'also the power, as at present, to limit loads, tyre widths, etc., and that- the money arising from the charges 'b e used for expenditure on the ifbads respectively for the use of which the charges are payable."

A delegation was 'appointed to present the resolution to the Government.