TAX ON COMPANIES

Nelson Evening Mail, Volume LXXII, 26 November 1938, Page 3

TAX ON COMPANIES

MANUFACTURERS AND SOCIAL I SECURITY PROTESTS IGNORED DIFFICULTY OF OBTAINING jl LABOUR j = Regret that protests against the social j| security tax on companies had been j | ignored by the Government was ex- • | pressed by the president, Mr H. H. | Higgins, at the annual meeting of the § Wellington Manufacturers’ Association J f Mr Higgins said that an examination ' 1 of the balance-sheets of many manu- 1 1 facturing companies in New Zealand j I to-day showed that taxes formed by ; I far the largest part of costs, the Gov- 11 ernment in many cases taking more in i \ taxation than the shareholders received [ in dividends. “The Government’s laudable effort to [ raise the standard of living of New : Zealand workers is fully recognised,” | said Mr Higgins, "as is the fact that j the increased purchasing power of the j workers —because of higher wages and j steady employment—has increased the i consumption of manufactured goods, j but unfortunately far too high a pro- j portion of this increased consumption j has benefited the importer rather than j the New Zealand manufacturer and ’ his employees. “The fact that too great a portion of the workers’ wages are being spent in imported goods has recently been admitted by the Prime Minister. We have been warning him of this trouble for the past two years and a half, and it is at least satisfactory to know that he and his Cabinet now realise the danger. "Another handicap with which manufacturers have had to contend during the past year, and one the manufacturers have in common with the farmers, is the difficulty in obtaining unskilled and semi-skilled labour, in competition with the Public Works Department. “The fact must be fairly faced that neither an individual nor a nation can lift itself up by its boot straps. Just as soon as the Government realises that true prosperity is based on production alone, both primary and secondary, and takes the necessary steps to encourage that production, a new era of prosperity—true prosperity—will dawn for New Zealand. “L want to emphasise the point that it is not only in the field of secondary industries that the policy of the present Governument has tended to restrict rather than to increase production. The farmer finds it increasingly difficult to hold his production at the old level, let alone increase it, because of the ever-rising costs, and the competition of the Public Works Department for his available labour. “It is gratifying to know from a recently published statement of the Prime Minister that the Government has set up a committee to inquire into the whole position, and report regarding remedial measures. Why such a committee —if it is necessary—was not set up two years ago, only Mr Savage can answer.”