TAXATION AND INDUSTRY.

New Zealand Herald, Volume LXIV, Issue 19831, 29 December 1927, Page 7

TAXATION AND INDUSTRY.

HOW TRADE IS AFFECTED.

INSTRUCTIVE FIGURES.

Jn tho course of his presidential address at the Incorporated Accountants' Conference, held at Manchester recently, Mr. Thomas Keens, F.S.A.A., made special reference to the effect of rates and taxes upon tho industry of the country. Payment of large sums in cash in the form of taxation, ho said, must affect the payment of large and small undertakings alike and, being placed at the disposal of the State, it could not be expended or reserved by tho taxpayers. This meant dislocation, though he agreed that a considerable amount of the money extracted filtered back into trade and industry. But, whatever view might be taken of the effect of taxation upon industry, said the speaker, ther?. could be no question of the serious and damaging effect of rates, particularly in regard to "small" business. Returns showed that the average rate in the pound throughout England was 6s B§d in 1913-14, while in 1924 it was 12s and the total amount of rates paid was £71,276,000 in 1913 and £143,275,000 in 1924. Mr. Keens pointed out that the influence of this rating upon the cost of manufacture was enormous and, among other instances, cited a case where an iron and steel manufacturer producing ■combined products found that the cost per ton for rates and social charges had risen from Is 6d in 1913 to 4s in 1923, an increase of 231 per cent. The tragedy is, he said, that while rates have increased enormously, the output in many industries has been reduced and the weight of the overhead burden for rates on a unit of production is increased both ways—rates become higher, output smaller, costs increase and the power to compete is lost.

AUSTRALIAN LOAN. LARGE CONVERSION ISSUE. CLOSING TIME EXTENDED. The Australian Commonwealth £36,000,000 conversion and redemption loan, which was to have closed last week, is to kept open for the time being. The Federal Treasurer, Dr. Earle Page, in a statement on the subject, said it was impossible then to judge with any degree of accuracy the results of the loan. Returns would continue to come in for several days, and in the circumstances tho Government had decided that the best course was to continue to receive both new cash subscriptions and conversion applications for the present. Ihis would give the Treasury time to gauge accurately the position. _ '? Up to December 20, according to official progress figures, approximately £l3^, Uw had been converted, and £2,000,000 paid off out of sinking fund moneys. On December 21 and 22, heavy eleventh-hour subscriptions were reported, though tne amounts have not' been disclosed. Probably not more than £20,000,000, or 55 psi cent., of the issue has been covered. _ The Federal Treasury on December U disbursed £5,000,000 in hall-yearly loan interest. Some of this may find its way into the redemption loan. In any event, it would appear, says the Sydney leleeraph, that the banks, which underwrote portion of the issue, may be called upon to make, good a deficiency.

AUSTRALIAN WHEAT CROP.

THE ESTIMATED YIELD. MUCH LESS THAN LAST YEAR. Harvesting operations are now in progress in all the wheat growing Australian States and a fair idea of the approximate outturn in the Commonwealth is possible. During November weather conditions were more favourable' in South Australia, Victoria and Queensland and the outlook in those States considerably improved. It was anticipated that the total yield for Australia would not exceed 100,000.000 bushels for the 1927-28 season, but this estimate may now be slightly exceeded. Crop observers forecast the yields in the various States as follows: —

State. Bushels, Western Australia .. .. 36.000,000 South Australia .. .. 20,000,000 i Victoria .. .. .. 23,000,000 Now South Wales .. .. 25,000,000. Queensland .. .. •• 3,000,000' 107,000,000

Hie Australian wheat crop for 1926-27 totalled 162,000,000' bushels, but this season Western Australia was the only State that enjoyed a favourable rainfall and consequently for the first time will have the largest yield of any of the States. . This estimate of 107,000,000.bushels for the Australian 1927-28 season will leave a little over 50,000,000 bushels for export as. wheat and flour —a little less than half the surplus last season. On December 1, the opening of the current season, there was probably a carryover for the whole oi Australia of three to four million bushels, the bulk of which was held in New South Wales. Assuming that the New South Wales crop will yeld 25,000,000 bushels, and allowing for the needs of Queensland &nd an extra- domestic demand on account of seed wheat, it is expected, says the Sydney Herald, that New South Wales will have an exportable surplus of 8.000.000 bushels, in the form of wheat and flour. From December 1, 1926, to December 1, 1927, that State exported 19,355,000 bushels as wheat and Hour, which, curiously enough, shows her as the lowest exporting State for the season, although having the largest harvest, indicating no doubt her large domestic consumption, increased by demands tor stock feeding purposes, seed wheat and the extra requirements of Queensland.