A PROPOSAL OPPOSED

Poverty Bay Herald, Volume LXI, Issue 18398, 16 May 1934, Page 9

A PROPOSAL OPPOSED

TAXING POWER BOARDS CHAIRMAN’S CRITICISMS. In his annual report the chairman-of the Wanganui-Kangitikei Electric Power Board. Mr. F. Purnell, strongly opposed the proposal that power boards should ho taxed. He held that such a course would violate an elementary principle in taxation—that the burden of tax should he shared equitably by those best able to bear it. “Power boards do not make and amass profits,'’ he said, “and any surplus over working expenses, and such* provision for depreciation as any prudent man would set aside for the proper conduct of his business, is returned to consumers in the form of reduced charges. ..Any tax imposed must therefore be paid directly by the consumers, the majority of whom in all power districts are among those who are below the taxable class. It, would therefore appear that taxation of power boards would do nothing more than shift part of the burden of taxation from the present taxpayers directly on to those who are recognised as being unable to bear any share of direct taxa,t ion.

“In our own case, taxation if introduced would be met by one of two alternatives, an increase in the price of current, or a special rate over the whole of the disr trict. Those who advocate power board taxation would do well to consider whether in doing so they are really'acting in the best interests of the .community that they serve so zealously. , “I believe, however, these remarks cannot be applied to the trading departments of the various local supply authorities. In some districts these departments are extensive, and come into direct competition with private business concerns. The latter are subject to the general Government taxation, and in equity it would appear that the trading departments of the power supply districts should not be placed on any better terms than the business firms with which they compete.”