NATIONAL PROBLEMS.

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 14

NATIONAL PROBLEMS.

FARMERS AND TAXATION.

GOVERNMENT'S POLIOY.

ADHERENCE TO LAND TAX. FORTHCOMING LEGISLATION. [DY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Friday. Taxation, unemployment, derating and tho Arbitration Court wore the subjects introduced by a deputation from the New Zealand Farmers' Union and tho New Zealand Sheepowners' Federation t-o the Prime Minister, tho Hon. G. W. Forbes, to-day. Their requests were on tho lines of tho decisions reached at tho recent conference. Tho Prime Minister said that while overy considc* ♦ 'ion would bo given to tho matters raised, ho thought that the view 3 of all sections of the community which would bo affected by the proposals should be heard before any definite steps were taken by tho Government. During tho coming session of Parliament bills relating to unemployment and tho Arbitration Court would be placed before tho House and tho fullest opportunity would be given for all views to be placed beforo the Government. In introducing the deputation, the president of the Now Zealand Farmers' Union, Mr. W. J. Poison, said this was tho first time the Farmers' Union and tho Sheepowners' Federation had come to a unanimous decision on the important problems affecting them and they wished to emphasise that unless production costs wore lowered the farming industry would be placed in a position that would load to serious troublo. The fairest way to pay for roads was through a patrol tax. Income Tax on Farmers. Mr. H. D. Acland said that on four occasions during the last six or seven years ho bad been a member of deputations urging that farmers should pay income tax instead of land tax. Farmers were quite capable of making correct returns and they would not be unjustly burdened in bad years. In good years the country would reap tho benefit. The Government would also get rid of the vexed question of valuation. Mr. J. S. Jessep said that rates for roading should be abolished. Until the land was placed on equal terms with other securities they would not get the capital necessary for its development. The growth of road transport bad placed an unfair and unjust tax on the farmer. The farmers proposed that the cost of the roads should bo borne by the users of tho roads. Tho Prime Minister: Have you the figures in connection with this scheme 1 Mr. Poison: We propose to raise the petrol tax to Is. Arguments in favour of the abolition of compulsory arbitration were placed before tho Prime Minister by Mr. ' C. Williams, who said that they were not making an attack on wages. Compulsory arbitration had led to the Court's being ignored. Tho farmers wanted to see employers and. employees brought together to thresh out their problems in a direct manner, and in this they were supported by the whole of tho employers in the Dominion.-- . Deficit to be Avoided. In reply tho Prime Minister said tho proposal for the abolition of the land tax , meant the dislocation of the present system. In budgeting at the present time they could not afford to have a deficit, and tho farmers would have to realise that a deficit would act adversely on them, as well as on. every other section of tho community. He would also like to hear tho opinion's of the town people, who owned land. Tho derating proposal required thorough investigation. It wa3 important that the Government at present should conserve tho revenue of tho country and at the same time reduce expenditure. In economising they were up against several sections of the community, as none wanted to bear the burden. Taxation of Luxuries. A Voice: What about a tax on luxuries? Mr.. Forbes: That is one of the first proposals that always comes along. If you put too heavy a tax on luxuries, people will do without them and you will kill the goose that lays the golden eggMr. Poison: I suggest that the farmer is tho gooso that lays tho golden egg. Captain F. Colbeck: You will not decrease tho revenue if you put a tax on petrol. Mr. Forbes: I would like to hear the Automobile Association discuss this question. (Laughter.) It is a very definite proposition and I would like to hear what they bave to say. A Voice: You are not taking this deputation seriously. We represent tho farmers of New Zealand. The AutomobiJo Associations havo not tho importance of tho whole of the farmers of the Dominion.

Mr. Forbes: Thoy havo tho right of an opportunity to placo their views before tho Government. I am quite prepared to hear the farmers and I am quite prepared to hear tho Automobile Associations.

, With regard to th» .Arbitration Court and unemployment, and (ho other matters mentioned, tho suggestions mado by tho deputation would rocoivo his earnest consideration.