MORE TAXES ON INCOMES.

New Zealand Herald, Volume LXVIII, Issue 20982, 19 September 1931, Page 13

MORE TAXES ON INCOMES.

PROPOSALS BY LABOUR. INDUSTRIAL DEVELOPMENT. REDUCTION OF MORTGAGES. RAISING INTERNAL LOANS. [BV TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Friday. The minority report of the Labour members of the Economy Committee was presented in the House of Representatives to-day by the Leader of the Labour Party, Mr. H. E. Holland. "The rapid drop in world prices is, in our opinion," said Mr. Holland, "mainly due to monetary causes, which are the subject of serious discussion in Britain, America, Franco and elsewhere, with the object of correcting the ill-advised policy of deflation that has been in evidence during recent years. It is generally agreed that in most countries the present price level is not sufficient to enable national obligations to be met. "For that reason it is fair to assume that in the comparatively near future new methods for greater control of the monetary systems of the world will be adopted, and will result in a greater measure of stabilisation than has hitherto been the case, and that prices will be raised to a level which will enable the nations of the world to meet their obli- i gations. Preventing Foreclosure. "In view of the serious position of many farmers, business men and others with fixed financial charges, in the form of mortgages, chattel securities, leases, etc., we recommend that a provisional moratorium be declared for the purpose j of preventing foreclosure, and that legislation be passed enabling mutual adjustments for a specified period of time between mortgagee and mortgagor, and between lessee and lessor. If within three months of the passing of the legislation no agreement has been arrived at, a 20 per cent, reduction immediately to operate, the mortgagee or lessor, as the case may be, to have the right of appeal to a suitable tribunal. "This proposal is a natural corollary to the wage and salary reductions. Unless wages and salaries are restored to their former basis, a reduction in the interest rates is inevitable, as the effective purchasing power of the people, and consequently the local market, depends upon the level of income received by wage and salary-earners. Reduced wages must result in trade stagnation. Every effort should be made to increase wages with the increasing volume of production, and thus make it possible for production to continue and the standard of living to rise. Principle of Arbitration. "While not satisfied with many of the decisions of the Arbitration Court, we subscribe to the principle of industrial conciliation and compulsory arbitration as a better alternative than the lock-out and the strike. "The only economic solution of the problem of unemployment is rehabilitation in industry at rates of wages that -will provide a reasonable standard of living for all who are now unemployed or working part time. In the meantime the Government should make further provision for the unemployed out of the Consolidated Fund, and additional grants should be made to hospital boards for the relief of distress arising from unemployment. "To meet the general situation it is necessary to organise the whole of the industrial forces of the Dominion on modern lines, and with this object in view we present recommendations which follow a courageous policy of primary and secondary industrial development, with systematised productive effort and definite planning of output in respective industries; the raising of internal loans \ for reconstructive purposes, such loans to be guaranteed by the State and made available for approved industries, primary and secondary, the associated banks and the people of the Dominion to be invited directly, and by means of a national campaign, to assist in making the loans a success." Details of Recommendations. The following are the recommendations: — (1) Careful selection of suitable men, in addition to those who are already employed, to engage in the work of preparing for immediate settlement large areas ol Crown and other lands, the men taking part in such work and willing to become permanent settlers to have preference in taking up land when ready for settlement. (2) Development of a plan, along the lines suggested by the rural economic adviser to the Department of Agriculture, for the purpose of improving the quality and number of dairy herds, increasing output and lowering the unit cost. (3) A State subsidy for the supply of fertilisers to farmers, on lines suggested by the rural economic* adviser. (4) Appointment of on Industries Development Board, to co-operate with the Government in preparing a plan for the development of secondary industries; where necessary the State to provide financial assistance for approved industries. (5) Regulation of the importation of goods the like of which are being produced in sufficient quantities in tho Dominion. (6) Immediate inquiries abroad for the purpose of arranging trade agreements between the Dominion and other parts of the British Commonwealth and other countries, in order to increase tho market for Dominion exports. Prices for Produce. (7) Investigation into tho possibility of arranging with primary producers to co-operato with tho Government for a guarantee of price for primary products, based upon a five-yearly moving average. (8) An extensive scheme of main and secondary highways construction, and particularly the construction of roads to backblock districts that are without adequate road access, highways revenue to be hypothecated for tho purpose of paying interest and sinking fund charges on the necessary loan moneys. " Wo agree that it is desirable to balance the Budget," continued the report, " and that the immediate burden should be spread over tho community according to the ability to pay. This being so, we are of the opinion that the primage duty should bo removed, and likewise all indirect taxes on foodstuffs and other necessaries not produced in New Zealand. The revenue lost by the removal of these taxes, and such other revenue as is required, should be made up by means of ;iii additional super-tax on the higher incomes, and a super-tax on dutiable goods the like of which aro produced iu New Zealand. " While disagreeing witty tho majority of members of the committee on the matter of additional taxation of income received from investments which are already subject to taxation, we are of opinion that all investment income from securities that are now free from taxaI tion should be subject to a special emergency tax, such tax to be on the I graduated income tax basis."