EFFECT ON INDUSTRY

Otago Daily Times, Issue 26233, 17 August 1946, Page 8

EFFECT ON INDUSTRY

RELIEF INSUFFICIENT

(P.A.) WELLINGTON, Aug. 16. There was great disappointment throughout the motor transport industry that there was no relief for motor transport whatever, said Mr H. J. Knight, secretary of the New Zealand Road Transport Alliance, to-day. The' industry had made repeated representations for relief from the high taxation on tyres, vehicles, and petrol, and was promised consideration when the Budget was being prepared, but they seemed, to have been overlooked. Motor transport was vital and essential to the whole community, its importance being second only to production, and it had a strong case for relief, but there was none, and transport costs must therefore remain high. “The 1946 Budget is a disappointing ono for everybody in the community because of its inadequate tax reductions,” said Mr W. H. Hindle, president of the Associated Chambers of Commerce of New Zealand, in a statement to-day “It lifts very little indeed of the overwhelming impositions that have been carried by the man in the street. It is obvious that the Government intends to stabilise taxation at penal levels so as to be enabled to continue its profligate expenditure. In the year ended March Jll. 1939, the total taxation collected was £37.800.000, whereas ordinary taxation collected for the year ended March 31. 1946 (exclusive of war taxes), amounted to £63.540.000. The Government is budgeting for £104,000,000 in civil taxes for the current year. Viewed against these figures the present tax concessions are ludicrous.”

“ While there are some disappointing features in the Budget, manufacturers are pleased to see the relief which has been given by the removal of the sales tax from certain basic necessities such as building materials, clothing, furniture. and perambulators,” said Mr W J. Truscott, president of the New Zealand Manufacturers’ Federation. “ Manufacturers have not been affected to any. great extent by the excess profits tax.” he said, and so he had no comment to make on its removal.

It has been estimated that the removal of the sales tax would reduce the cost of the average five-roomed house by about £IOO. said Mr W J Mountjoy, secretary of the New Zealand Federated Builders and Contractors’ Association. Mr Mountjoy said that with the cost of housing, furniture, and clothing reduced, there must naturally be a reduction in the cost of living. That being so, he could not see how workers could substantiate claims for further increases in wages. “The removal of the sales tax will substantially reduce the cost of clothing and furniture. This move has been advocated for a long time by retailers, and is most welcome.” said the secretary of the New Zealand Retailers’ Federation. Mr G L. Riley.