CRUSHING BURDEN

Poverty Bay Herald, Volume LXV, Issue 19777, 3 November 1938, Page 7

CRUSHING BURDEN

DOMINION TAXATION SOCIAL SECURITY COSTS ILL-TIMED WORKS POLICY MR, A. CL DUNN’S CRITICISM (Per Press Association.) AUCKLAND, this day. In his presidential address to the Associated Chambers of Commerce conference to-day, Mr. A. C. Lunn, of Auckland, said it was no concern of their organisation which political party was governing the country. They had co-operated with and criticised the actions of many. different Governments, but had refrained frOm political partisanship.

Referring to the social secui ity legislation and the company tax of Is in the £ on profits, Mr. Lunn said this addition to the already crushing burden of taxation borne _by companies must have a most serious effect on joint stock enterprises, and he viewed the outlook with gra\e concern.

“Experiment as wb may in the Dominion,” said Mr. Lurin, “we cannot get away from the fact that il we are to live within our means, meet our debts, and provide employment for all, we can never do it by restricting the production of wealth, nor by consuming that wealth at a pace that cannot be maintained, nor by shortening working hours, nor raising wages, nor borrowing for unemployment.

Increase in Output

“We need to work harder, increase our output without increasing costs, save income to meet debts, provide capital for productive enterprises, and build up reserves against a rainy day.”

Mr. Lunn mentioned the huge public works programme and added that this year, with more than £20,000,000 not merely from revenue but also from borrowing, and a huge total of 23,000 men now employed on public' works, this activity had a decidedly inflationary efTcct and undesirable reactions.

Mr. Lunn quoted the trends in Sweden and Australia to support the contention of the Associated Chambers that New Zealand’s present public works policy was ill-timed, and that the Dominion should adopt a system of scheuuling public works, both national and municipal, in order of importance with a view to with-hold-ing non-emergency works in times of prosperity, and putting them into force as unemployment becomes progressively worse. Spirit of Dictatorship

Mr. Lunn said the tendency to make Ministers of the Crown the final arbiters in a wide range of matters was unwise and unfair, and must, if unchecked, tend to a spirit of dictatorship. Mr. .Lunn said that any measures taken by the authorities to increase the personnel of the defence forces would have the full support of the commercial community. Finally, he urged that the Government should use every effort to avert disaster by exercising the strictest economy in administration, restoring confidence in the future among the commercial, industrial and financial classes of the community, ceasing to interfere and compete with the businesses of the country, reducing th .■ enormous burden of taxation under which they were now staggering, and by realising that, desirable as may be the large social amenities and high wages, they can be maintained only during times of prosperity and rising national income, and that it is impossible to maintain them at the same rate during times of depression. He moved the adoption of tne annual report and balance sheet.