TAX ON AMERICAN FILMS

Taranaki Daily News, 19 September 1930, Page 9

TAX ON AMERICAN FILMS

GOVERNMENT FIRM

ATTITUDE OF DISTRIBUTORS

PURCHASE-OF THEATRES DENIED,

ACTING-PRIME MINISTER’S VIEWS.

By Telegraph.—Press Association. Wellington, September 18. J Interviewed this morning, Sir Victor Wilson, president of the Film Distributors’ Association, said it was correct that he had recently had a letter from the Acting-Prime Minister that the Government was not prepared to reopen the investigation or to have an inquiry into the position. Sir Victor hoped to make a complete statement of the case within the next day or so, as he believed not only the trade but the public was entitled to know the whole of the circumstances of the present lock-out in the film industry. He had received a cable message from Mr. Munro, acting-managing director of the Fox Corporation, to deny that the organisation contemplated the purchase of theatre interests in New Zealand, said Sir Victor. Mr. Munro said: “We are not interested; please publish a denial.” In an interview to-day the' Acting Prime Minister, Mr. E. A. Ransom, said: “If the tax brings in more than is anticipated by the Government it can only mean that the net rentals, after deducting administrative expenses and the amount on which income tax is payable, are greater than was estimated. If the rentals are greater it simply means that the surplus remaining for the film companies is greater than if the yield from tax was less. Thus the renters should, be the last to complain of the tax producing more than estimated.” After quoting thp. points made by the Minister of Internal Affairs in reply to a recent deputation, Mr. Ransom said: “The distributors have to explain why the tax is confiscatory and causes a lock-out, while taxation in Australia involving the same percentage of gross rentals can be accepted with more or less equanimity, British fiim producers who share the principles involved in the tax have raised no such questions as lock-outs and boycotts, but, on the contrary, have assured the Government of their "determination to carry on, with the hope that when times are bettor the Government-will agree to review the matter,”

In regard, to the statement that the distributors’ action was not a bluff, they having withdrawn under Mr. Hays’ instruction, arid they must stay out until Mr. Hay gave them permission to recommence business. Mr. Ransom said the industry must clearly understand the Government would, not tolerate, interference in the domestic affairs of the Dominion on the part of any foreign corporations.