GOLD EXPORT TAX

New Zealand Herald, Volume LXXII, Issue 22269, 18 November 1935, Page 14

GOLD EXPORT TAX

DEFENCE BY MR. FORBES FOSTERING THE INDUSTRY CAPITAL FROM OVERSEAS [by TELEGRAPH —OWN correspondent] DUNEDIN, Sunday "I think there is a future for the gold mining industry in New Zealand and I am looking forward to seeing a great deal of activity," said the Prime Minister, Mr. Forbes, when explaining the Government's attitude over the gold export duty to a Dunedin audience on Saturday night. Mr. Forbes said it had been stated that the export levy of 12s 6d an ounce was fatal to the expansion of the gold industry, but it was difficult to justify that statement in view of* the fact that coincidently with the imposition of the tax the price which the gold producer could obtain for his product was increased by the Government by 15 per cent through the adoption of the Government's exchange policy. Gold to-day was worth £8 18s an ounce. The value before the exchange rato was raised was £6 9s, so that there had been an increase of £2 9s. After the tax of 12s 6d was deducted, there was still an increase of £1 16» 6d over the 1932 price. "We increased the price to £8 18s -by raising the exchange," said the Prime Minister, "and I think when we put on the tax to help the country's finances it was not an un- ! reasonable thing." It had also been stated, Mr. Forbes I continued, that largo capital sums for ; developing gold mining had been de- ; fleeted from New Zealand. The Govern- ! ment had no reliable evidence which i would justify that statement. On the | contrary, when he was in England rej cently, Mr. Forbes said that represen- ! tatives of strong financial interests expressed to him personally during an interview their deep appreciation of the assistance given by the Government to the industry in New Zealand. One of those representatives, speaking from world-wide experience, had said that he did not think there was any other country with which lie had had to do that had given them the assistance New Zealand had done. "I have done my best to encourage the people to put their money into gold mining where there was any chance of their getting a satisfactory return on their capital," Mr. Forbes added. "The Government itself has assisted materially by the activity of the Department of Scientific and Industrial Research. There has never before been so much information available about mining—about its geological aspects particularly —as at present, and this information has been made available through the Government's interest in the expansion of the industry. Even now I know of a number of dredging companies preparing to start operations here. That all means that from gold we are going to get a greater revenue, along with increased employment. That is somothing worth encouraging, and the Government is doing its best to give the mining industry every encouragement." BOARDS DEFENDED WORK FOR RAILWAYS ACHIEVEMENT IN FINANCES ' [by telegraph—OWN correspondent] DUNEDIN, Sunday The system adopted in New Zealand for administering the railways had enabled the amount the public had to contribute to keep the service operating to be reduced. Some credit at least was due to the Government for that, said the Prime Minister, Mr. Forbes, defending the institution of a board to administer the railways in an address last evening. Mr. Forbes, speaking to a large and sometimes excited audience, challenged interjectors to name any of the re-cently-appointed Government boards which could be done away with. Above a broadside of shouts could be heard mention of the Railways Board and the Unemployment Board. Mr. Forbes started to enumerate some of the principal boards, and , asked one near by interjector what he would like to see abolished. "The Railways Board," .the man shouted. "Very tyell, then, let us take the Railways Board," said the Prime Minister. "We were asking the people of this country to put their hands in their pockets svid find £2,000,000 to meet the railway deficit brought about by the depression. I considered it was a case where such an organisation ought to have the same opportunity to secure new business as private enterprise. We wanted to be able to get the railways running as a commercial project without being subject to political control. To achieve that wo appointed the Railways Board." Detailing some of the achievements of the board, Mr. Forbes mentioned the improved financial position. The board was appointed in 1931, he said, and in that year the net revenue was £688,727. For 1934-1935 the net revenue was £1,087,491. Other boards which had been set up, the Meat Board," the Dairy Board and others, had all been established on the representations of the industry affected. The boards were.. performing a useful function. Someone had asked whether it was a democrats way of running the . country's industries. " I say it is the highest manifestation of democracy, and 1 it is' an intelligent democracy which recognises that in these boards very useful functions can be performed." V. ADDRESSES AT WAIHEKE MR, BURTON'S CAMPAIGN • ; . The National Government candidate for Auckland East, Mr. H. P. Burton, addressed meetings at ! Omiha, Ostend and Surfdale, Waiheke Island, on Friday and Saturday, receiving attentive 'hearings, and hein© accorded a vote of thanks and confidence in each case. The candidate dealt with the main points of the Coalition. Government's legislation during the past four years, emphasising that it had been compelled to make unpopular, moves in several instances. Ho maintained that no middle course could possibly have been adopted if prosperity was to be built on a firm and permanent basis. GUARANTEED PRICES ONLY ONE PLAN CLAIMED [from our own correspondent] ' 'HAMILTON, Sunday The suggestion that. there was more than one plan for' guaranteed prices was vigorously rebuttedby Mr.R. Coulter, Labour candidate for. W&ikato, when speaking at Patetonga. Mr. Coulter, claimed that" there was one plan only, and' that 70 Labour candidates were.' expounding that plan- Political opponents, however, had twisted isolated statements to suit themselves and had put a dozen or more constructions on the plan. Mr. Coulter was accorded a hearty vote of thanks ■ and confidence, there" being one dissentient*