FRUIT RESEARCH

New Zealand Herald, Volume LXXII, Issue 22045, 27 February 1935, Page 13

FRUIT RESEARCH

ORCHARD TAX INCREASE GROWERS PROVIDING FUNDS PROPOSED LEGISLATION REQUEST OF THE INDUSTRY [BY TELEGRAPH —SPECIAL REPORTER] Tuesday Authority for an increase in the rate of the general orchard tax from Is to 2s an acre is contained in £be Orchard Tax Amendment Bill, which was introduced by Governor-General's message and read a first time in the House of Representatives to-day. The bill also provides that on the recommendation of the Minister of Agriculture £B-50 shall be paid out of the proceeds of the tax to the New Zealand Fruitgrowers' Federation, Limited, to be expended in the interests of the fruitgrowers of New Zealand as may be approved in accordance with regulations under the hill. The balance derived from the tax shall from time to time as required be applied as a credit-in-aid of the vote of the Department of Scientific and Industrial Research for scientific researches or experimental work in relation to the storage or transport of fruit or generally in relation to the fruitgrowing industry as the Minister in charge of the department may, on the recommendation of the Council of Scientific and Industrial Research, s^prove. Representations by Conference

The Prime Minister, Mr. Forbes, explained to the House that the bill had been promoted as a result of representations made by a conference of Dominion fruitgrowers. The reason for the increase in the tax -was to provide funds for research hi orchard work and the urgency for the passing of the measure arose fro~i the fact that the tax •was due on March 1. It was proposed to postpone the due date to April 1 to enable amended returns to be ' sent out.

Mr. W. E. Parry (Labour —Auckland Central): What about the Research Department doing 'the job without putting it on to the orchardists ? Mr. Forbes said that money for research work had formerly been obtained from grants made by the Empire Marketing Board, but with the cessation of those grants the money had to be obtained elsewhere. The fruitgrowers were quite prepared to find part of the money for research. State Grant Suggested

Mr. A. J. Stallworthy (Independent —Eden) protested against the tax on the fruit industry being increased ind he recalled the effort made to impose a levy on the wool industry. Mr. W. J. Poison (Government — Stratford): But in this case the industry asks for it. >Mr. Stallworthy: I think it is a case for' a straight-out Government grant. Mr. F. Langstone (Labour —Waimarino): But that would increase the deadweight debt. (Laughter.) Mr. A. M. Samuel (Government — Thames) said he did not oppose the bill as the industry had asked for it. However, the fruit industry had guaranteed prices and no doubt other industries would be willing to pay a little taxation in return for security of tenure.

Mr. H. Atmore (Independent—Nelson) said it was true a guarantee was given to the industry, but it was inadequate. As research work was urgently necessary and the Government was giving no assistance in that direction the fruit-growers as sensible men had decided to undertake the responsibility themselves. The bill was read a first time.