CHARGES BY BANKS.

New Zealand Herald, Volume LXVII, Issue 20668, 13 September 1930, Page 12

CHARGES BY BANKS.

RESULT OF NEW TAXATION.

BURDEN JPLACED ON PUBLIC.

PROTEST TO GOVERNMENT.

[BY TELEGRAM.—SPECIAL REI'ORTER. ]" WELLINGTON, Friday. "The Government has endeavoured to spread taxation as {airly as it could over tho whole community, and any effort on the part, of the banks or others to get out of that impost ancf place it on tho shoulders of those already taxed will receive tho serious consideration of the Government,' said tho acting-Primo Minister, the Hon. E. A. Itansorn, in replying to-day to the representations of a Parliamentary deputation which waited on him to register a protest against the action of tho banks in increasing the charge for keeping accounts and in decreasing the issue of ten shilling notes, following tho Government's taxation proposals. Tho Leader of the Labour Party, Mr. H. E. Holland, said the banks had increased tho charge for keeping accounts by 100 per cent. Tho banks had been asked to pay only a reasonable share of tho taxation of the country and had retaliated by withdrawing ten shilling notes fiom circulation and by adding 10s a year' to tho charge for keeping accounts. Tho deputation asked tho Government to secure the revocation of that decision by the banks. The deputation was inclined to suggest that if the Government approached the banks with regard to the matter the banks would listen to reason; otherwise ho would suggest the Government should take very definite action in tho matter.

Increase in Note Tax. Mr. F. Langstono (Labour—Waima-' riiio) said the banks were acting under licence or charter from Parliament and the Government and Parliament? could extend or restrict that licence. The deputation wished the Government to tell the banks that it was not for them to fly in the face of either Parliament or the people at a time like the present. The petrol companies had agreed to bear portion of the increased taxation but the banks were passing on the whole lot, and the increased taxation as a result of the note tax would amount to £IOO,OOO a year. Mr. A. Harris (Reform —Waitemata), Air. F. Lye (Government —Waikato), Mr. J. S. Fletcher (Independent—Grey Lynn), Mr. H. G. Dickie (Reform —Patea) and Mr. M. J. Savage (Labour —Auckland West) gave general support to the representations.

Replying Mr. Ransom said he realised the position was a seriqus . one to the general taxpayer. The Government had endeavoured to place taxation in a manner in which it could not easily be passed on in the case of the larger institutions because already by other systems of taxation each individual was being called on to carry what was believed to be a fair proportion. Since it had come under notice that the banks proposed to pass on taxation the Government had asked them to give particulars of the proposals and the batiks did notify that they proposed to add 10s to the charge for accounts and to withdraw 10s notes from issue. Alternatives May be Worse.

Mr. Ransom thought the Government would be quite entitled to ascertain from the associated banks the exact number of customers they had so that the Government might be in a position to know whether the banks were carrying any of the note tax or not or whether they were getting more from their customers than was being levied on the banks. Mr. J. Jordan (Labour —Manukau): It is accounts, not customers. Some customers have several accounts. Mr. Ransom said the associated banks had said they would be compelled to pass on the tax. He assured the deputation that its representations would have full consideration. Just how far it was possible to go was another matter. It had been suggested that the banks should be called on to revoke the decision to impose another 10s on accounts, but he thought the Government would require to know what the banks proposed to do in that case—whether the banks would propose taxation in some other direction or whether they would carry it themselves. If the banks decided to raise the rates for overdrafts that might be more disastrous to the country than the present Not only had the banks indicated their intention to pass on taxation, but the Government had had representations from other strong financial institutions which were also disinclined to bear the taxation. Both the film producers and the insurance companies were asking that the measure of taxation upon them should be reduced and stated that they considered the impost was higher than thev should be called on to pay?