GAS INDUSTRY

Southland Times, Issue 21831, 7 October 1932, Page 7

GAS INDUSTRY

RATE OF TAXATION.

UNFAIR TREATMENT ALLEGED.

(Per United Press Association./ Wellington, October 6. Some sympathy with the plea for taxation of power boards and public bodies on an equal basis with the taxation at present imposed on private gas companies, was expressed to-day by the Minister of Mines, the Hon. C. E. Macmillan, speaking at a luncheon given by the directors of the Wellington Gas Company to the visiting delegates to the annual conference of the Gas Companies’ Association of New Zealand. The chairman, Mr G. Fitzgerald, referred to the existing exemptions enjoyed by the State and public. Both concerns were trading in competition with private companies and he stressed the serious effect which this had on the development of the gas industry. Dr C. Prendergast Knight said there was no doubt gas companies had been unfairly treated in the matter of taxation. He could not see any reason for treating the citizens of Dunedin, Nelson, Palmerston North or Hamilton on a different basis to a citizen of Wellington, Auckland, Christchurch or any other town served by private company. Profits were needed to pay dividends and private companies served the communities better than did municipal concerns. Mr James Lower, of Auckland, stated that the gas industry employed more labour in proportion to the capital invested than did the electrical industry. The Minister said that private companies had made large dividends in the past and had doubtless provided for the future. The fact that gas companies operated under franchise was a clear indication they had the advantage and were it not for that monopoly, gas companies might have to contend with Dominion competitors. “You suggest I should consider whether some taxation should be put on electric power boards,” said the Minister. “All I can say is that I must refer you to the Minister of Finance and he will probably refer you to the National Expenditure Commission. I agree that to a very great extent these concerns should be subject to the same taxation as you are.” (Applause.) The Minister said he had always advocated that for a possible standard a balance-sheet should be required from power boards and public trading concerns. This would permit comparisons to be made.

Referring to taxation of competitive public concerns, the Minister said: “We will probably get it in the. course of time. When we get over this blizzard we will reach a time when your representations will receive more consideration.”