EXPORT DUTY ON GOLD

New Zealand Herald, Volume LXX, Issue 21414, 11 February 1933, Page 15

EXPORT DUTY ON GOLD

Sir, —It is a serious blow to the gold industry of New Zealand. The benefit on the rate of exchange is only felt on moneys remitted back to New Zealand and as our most' successful mines are owned and controlled principally in England this tax is felt in full by the English investor. There have been lately several persons representing large financial interests at Home investigating mining propositions in New Zealand, with the view of opening tip fresh gold mines with English capital. This, of conrse, would mean employment for New Zcalanders, but now that our gold is worth 12s 6d per ounce less than the London price owing to the tax, naturally, these interests will turn to Australia or Africa and leave New Zealand well alone. To interfere with overseas interests may lead to international complications and is very shortsighted policy. There is a vast field of legitimate taxation on power boards and municipal enterprises who at present escape scot free. The gold industry contributes to the prosperity of the country and is as vital as dairying or wool. What is needed is a bounty on gold, not a duty. Such a staggering blow has never been dealt to the Dominion by politicians in its history as this ruinous impost on one of our important exports. Gold, as the basis of all credit, should not be .tampered with. When it is disaster is sure to follow. Investor.