MORE TAXATION ADVOCATED

Southland Times, Issue 24757, 30 May 1942, Page 6

MORE TAXATION ADVOCATED

MEETING COST OF THE WAR The raising of all money for war expenses by taxation, the curtailment of racing and the abolition of overtime rates of pay during the war were among the subjects discussed at the first annual meeting of the district council of the Invercargill Returned Services Association yesterday. The object of the meeting was to consider the remits on the order paper for the Dominion conference on June 17, and particularly those sent forward from the Invercargill association and its subassociations. Delegates to the conference were appointed, and they were given an indication of opinion on the various remits. Dr A. Owen-Johnston, president of the association, was chairman and the 15 sub-associations were well represented. “That all war expenses be met by taxation,” read a remit from Orepuki. Dr Owen-Johnston said he was very much in favour of the remit. He considered that up to 60 per cent, of the people’s income should be diverted to war purposes to ensure a total all-in effort. After allowing ;. basic minimum to cover living expenses for the taxpayer and his family, the rest of his income should be subject to a steeply graded tax. No one expected or wanted to be anything other than poorer because of the war, and all should be prepared to make great sacrifices. Unfortunately, compulsion was necessary to induce a number of people to subscribe their share either to patriotic funds or war funds. He agreed with the statement made by the Hon. W. Nash a year ago that only about 5 per cent, of the population of New Zealand fully realized there was a war on. Severe taxes would be a sure way of bringing them to realize the position. RACING IN WAR TIME A remit from Ohai urged that the Government be asked to prohibit the use of racecourses for racing during the duration of the war if they were being used as military camps. It was stated by one delegate that such an action would not meet the position, as it would only divert the race-going public to other meetings. What was wanted was a substantial or total curtailment of racing. It was pointed out I that soldiers in camp on racecourses were put to a great deal of inconvenience through having to move their equipment from racecourses for meetings.

The chairman said that although he had been associated with racing for a number of years, he had been distressed to see at such a time as tin's that totalizator returns increased at every meeting. So that a total war effort could be obtained, he would not be opposed to the closing down of all racing for the duration of the war.

From Gorge Road came a remit urging that all overtime rates be abolished during the war and that all workers be placed on standard rates of pay for all hours worked. It was stated that workers were being withdrawn from industry for military service while those remaining were allowed in some cases to treble their income, thereby placing an intolerable burden on industry. Some delegates expressed the opinion that the whole economic framework would collapse if all workers were paid standard rates similar to those paid to soldiers, and the best method of overcoming the position was to raise the rate of taxation. GRANTING OF PENSIONS

Remits on pensions requested that an economic pensioner should have his allowable income computed on a yearly basis and that war pensions be provided for widows and dependents of war pensioners even though the death of the pensioner could not be traced to war injuries.

The following remit from Ohai was considered: “That the Government base the value of land offered or commandeered for soldier settlement, at a price not to exceed 10 per cent, of Government valuation plus reasonable value for improvements, any person demanding a higher price for these properties to be taxed on his own valuation.” The opinion was expressed that the productive capacity of land was the only basis on which the value could be fixed, and care must be exercised so that there was not a repetition of the experience after the last war when soldiers were put on to land bought at fictitious prices. One delegate said that as most produce wdas now sold at a fixed price it should be an easy matter to arrive at the value of any property.