TAXATION OF CIVIC TRADING PROFITS.

Otago Daily Times, Issue 19205, 23 June 1924, Page 8

TAXATION OF CIVIC TRADING PROFITS.

TO THE EDITOR. a Tr t hav3 read with interest in your iopue’of June .19 the remarks of Cr Taverner in moving tho adoption of the report of the Finance Committee of the Dunedin City Council. For tho kind and gentlemanly manner in which he expressed bis views, Cr Taverner deserves tho thanks of the primary producers, and the members of the Cuy Council are to be commended for wrestling as they do with the dull intellects of the -woolly fingered” gentry. Me twist the municipal pic will still be an cdib.e dish and that the portion reserved for the lax gatherer will Ire such as will gladden Ins hC The Otago Pronvincial Conference of Iko Farmers’ Union, at a recent _ meeting, adopted a remit affirming the principle of municipal trading concerns being liable to taxation. The Finance Committee of the City Council has expressed its determination to oppose the attainment of this object. As a consequence. at a meeting of the Wai kouaiti branch of the Farmers Union th; following resolution was passed _ That this union reads with surprise and disfavour the report of the Finance Committee of the Dunedin Citv Council, dealing with the suggestion that municipal trading concerns should he liable to taxation. Bearing in mind tho large amount of capital employed and tho handsome profit of approximately £3O 000 shown, the union can think of no reason why urban citizens should bo enriched at The expense of the general taxpayer.” Commenting on this resolution, Cr Taverner said it seemed to him that for unadulterated impudence the Waikouaiti branch of the Farmers’ Union would require some beating. . . . Quito recently the Taxation Commission held a sitting in Dunedin. A Dunedin commercial gentleman (Mr Cow) gave evidence before that commission, and advocated both a land and income fax for primary producers. I have still to hear that Air Gow was charged with unadulterated impudence. Mr William Lee (of Goodwood) and Mr John Christie (of Balclutha). members of the Fenners’ Union, also gave evidence, and drew attention to the fact that municipal trading concerns were exempt from taxation. The Finance Committee of the City Council was 'veil aware of the nature of that evidence. "Why did its members not appear before the commission and state their reasons for continued exemption? Now. consider your electric power scheme. The City Council spent £16.0(10 in an endeavour to develop the Lee Stream scheme. A private syndicate saw the possibilities of V.Tiipori. and, given equal opportunities, v'ould have put the City Council scheme out of action, and at the present moment

Drrwdin would be getting it 3 newer quite as' cheaply, and the Government be collectinti' a reasonable tax. . . ... Or take tho ’Wclll'ngton municipal milk sunpiv scheme. At the present time, the dairymen who supply the milk ' receive 2M u»r "quart from the corporation, which retails to the consumer at 8 per quart. The d'airvinnn, who supolica land, cows, and all necessary equipment, and docs all tho unpleasant work, gets 2Jd per quant, and must nay land tax. The corporation which delivers the milk collects 5d per quart and navs no tax.

I am quite satisfied that, we stand on firm around in this matter. Taxation must be levied on those most able to pay, and a.

-,-m-vration whicli is rnakin— a profit of £50.000 per annum cannot plead inability. That it should plead unwillingness is. I ‘■bink. not to its credit. Evrey co-operative -oco-i-itie-- in New Zealand i.q working on oxacl.lv 'bn seme linos as the municipal 'reding concerns, and oil are liable to taxation. _

It is quite open to the Citv Council to -of---r.st anv method that it thinks better than the present one of collecting taxes from rrimarv producers, hut nlwavs. bear in mind that \ya already ray land i ax, that we, have to inirchaae cur requirements in n prot-neDd market (which is allto the advantage of tlm cib'oab and that vm have to sell practically all our products in the ouen intrkols of the woo’d. We arc quite i'.tf -'e.r—d {o pav an export tar on condition that the import tax is -bob'sh-d.— T nm, c i fij John Macaulav. Waikouaiti. June 21. t