SPECIAL INSURANCE

New Zealand Herald, Volume LXXVII, Issue 23700, 5 July 1940, Page 9

SPECIAL INSURANCE

alleviating taxes PREMIUM ON PROPERTY MR. HOLLAND'S SUGGESTION [BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Thursday A war insurance of Id in the pound on assets was suggested to the Government as an alternative method of war finance for a portion of the Dominion's internal war costs by Mr. S. G. Holland (Opposition—Christcliurch North) in the House of Representatives tonight.

The Keynes saving plan was first recommended by Mr. Holland as being worthy of consideration. He said it deferred purchasing power. Mr. J. G. Barclay (Government — Marsdcn): That is what the compulsory loan is going to do. Borrowing Rate Too Great

The rate of borrowing was too great for the first year of the war, said Mr. Holland. Nearly £19,000,000 was to be borrowed internally and £20,000,000 overseas. As an alternative he suggested a new system as a war emergency only. "Assuming that a war insurance premium of Id in the pound 011 equities in property would suffice," he said, "surely it is worth spending Id to protect the remaining 239 in the pound." Mr. Barclay: How much would Id in the pound bring in? Mr. Holland: In the vicinity of £4.000.000. It could be applied to only a proportion of our internal costs, but it would enable the Government to remove the burden from those unable to bear it. Everyone would pay according to tho amount he had protected. Scope lor Economies Some would say that his proposal was capital levy, Mr. Holland added. It was not. It was a premium on the value of the assets being protected. When the war ended and the danger no longer existed the premiums would be no longer payable. The cost to the property owner would be no more than in the Budget. Mr. Barclay: "We have been considering it. "It is proposed, that only a relatively small amount of our internal war costs would be raised by way of war insurance," said Mr. Holland, "but with economies, this would avoid the necessity for increasing taxation as much as is proposed by way of sales tax, income tax and wages tax."

MORE PRODUCTION NO RASH ENTERPRISE DIRECTOR-GENERAL'S ADVICE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday If primary production is to be increased, it cannot be done by rash enterprise or by the abandonment of fundamental principles, according to a statement by the Director-General of Agriculture, Mr. A. H. Cockayne, in the annual report of the Department of Agriculture. He said that, with the exception of pigs, spectacular increases in stock population could not be made, but, although dairy herds and sheep ilocks could be built up but slowly, there was room for increased production from these animals by the provision of adequate feed supplies and conscientious management. In New Zealand, where there was a wide variety of farming activities and conditions, it was impossible to lay down a national programme, except in the most general terms. However, if each farmer studied his own resources and planned an increase in production according to the means at his disposal, the aggregate result would be substantial. The first essential m any plan for a farm where animals were maintained was to organise the feed position, and, by top-dressing and grazing management. pastures should be kept as nutritious and as highly productive as possible, Mr. Cockayne said. In pigkeeping, supplementary crops were an essential to success, but if c\ery faimei would plan a cropping programme to carry as nianv pigs as possible through the winter until dairy by-products were available, he would be performing a signal service to the Empire.

WOOL SUBSTITUTES THREAT TO PRODUCERS GERMANY STRIVING TO UTMOST ! [by telegraph —special reporter] WELLINGTON, Thursday The competition which wool was still likelv to face from synthetic fibres was discussed by Mr. J. P. E. Duncan wool instructor, in the annual report of the Department of xVgriculture, presented to Parliament. He said the decision of the, International Secretariat to carry on with its work was a welcome one. Mr Duncan stated that one of the results of the present conditions was that the problem of wool s competitors, the artificial fibres had temporarily faded into the background. It would be a -rave mistake, however to forget about° them, as without a doubt Gerii]ailv must be striving to the utmostcut off as she was from virtualh tho whole of her wool supplies—to improve existing types of synthetic fibres ( and perfect new ones. This must also be the case to a lesser degree in other countries ■ winch were fimling difficulty m securing, normal supplies. It won d be. fairly safe to hazard a guess that after the war tin' question of competition with substitutes would loom even larger as one of the major problems in wool production.

COST OF RABBITS WARNING BY DEPARTMENT [by telegraph—special reporter] WELLINGTON, Thursday The belief that the commercial value of rabbits might outweigh their nuisance as a nest is criticised in the annual report of the Department of Agriculture in a section which reviews the measures adopted to control rabbits in various parts of the Dominion. Jt was stated that the North Auckland portion of the Auckland Province did not show any increase 111 the number of rabbits. Nevertheless, the presence of rabbits in any degree was i matter for constant concern, and everv endeavour should be made to clear them altogether from this area. The condition of the Waiknto was satisfactory. The opinion was expressed that there were still far too many rabbits.in the Ota.'o-Sonthland district, and it was regrettable that many settlers still allowed the commercial aspect to militate against the destruction of the pest, if was mentioned that rabbit skins during 1939 numbered if I ]9o 994 and, considering that these voidiits consumed tho same amount ot food as approximately 1.500,000. sheep, t did not require any financial wizardry oarve at the substantial economic loss that resulted from tho. rabbit.