HAMPERED INDUSTRY

New Zealand Times, Volume L, Issue 11422, 19 January 1923, Page 8

HAMPERED INDUSTRY

NEW ZEALAND’S WEALTH. NULLIFIED BY TAXES. At last night’s meeting of tbe Centra] Progress League, Mr G. Mitchell gave a report on the industries of New Zealand.. A few extracts from it read as follow: — "Of all the countries of tbe world none are more richly endowed than our own. We have gold, silver, copper, marble, asbestos, lime, marl, coal, iron ore and ironsand, timber, gum, flax, potter’s clay, and rich pastures, from which are provided bides, skins, fat and wool. In fact all tbe raw materials are provided in one of the most richly endowed spots on the earth. An abundance of coal awaits development, besides which water power flows from our ranges in every part of the country. "On this little spot the great Provider has deposited for the use of Hi« people, this great natural wealth, which is placed in our hands to develop and use for the common good. We hare also i People very diverse in physique, abiliti and inclinations. Some are suitable foi the farm, others for the workshop oi factory, and others, again, for tbe office or warehouse. All these different classes of people may be experts in the vocations for which Nature has fitted them, but complete misfits in any other calling. _ Tbe country whose people art directed into avenues of usefulness which Nature has fitted them for will gain the greatest economic value from its people, and wiR attain the highest standard of life and living for its workers. ENCOURAGEMENT OF INDUSTRIES. ''Viewed from all points, our secondary industries make a poor showing. 1 do not believe that this is on account of want of industrial enterprise by our people. The incidence of taxation, whereby we tax industry instead of taxing wealth, makes it impossible for them to compete with competitors in other countries, where a more just incidence of taxation obtains. Wo certainly encourage industries by Customs duties, but more than nullify that encouragement by our system of taxation. We give protection with one band and take it away with the other. Compare tbe position of a company developed to make, say. wool lops. In Victoria, the company would pay Is company tax to the State and 2s 8d Federal tax on their undivided profit only, while in New Zealand tbe same company would pay Ts 4d in tbe £. A company in Victoria could probably pay Is company tax, freight to New Zealand and Customs duties. and then land their goods in New Zealand cheaper than the same Company could manufacture them in New Zealand and pay 7s 4d in tbe Jt company tax. MANGAHAO SCHEME "Onlv those industries which, by mon - opoly or other cause, can pass this tax on to tbe people, are able to carry on in the Dominion. "Early next year Wellington will have 12/XX) h-p. from Mangahaq. and a plant nt Evans Bay costing upwards of JMWI--000, and capable of turning out 12.000 h.p. The highest peak load for the city last year was 10,000 h.p.. and tbe aTerapo is not nearly so high- Allowing for an immediate demand for much more power than is obtainsb’e now we will still have power available for now Industries. which power it is necessary to make immediate use of in the interest of economy :ard efficiency.

"We have the workers, the raw material. the power, and the capital. All that is required is an adjustment of the company tax. which will allow all this labour, material. power._ and capital to come together and function for the good of all.’’ "