WAR MINISTERS’ PROFITS

Taranaki Daily News, 25 July 1931, Page 9

WAR MINISTERS’ PROFITS

TAXING OF EXCESS PLANNED

LABOUR MEMBER’S BILL IN HOUSE

ALLEGED INJUSTICE TO INDUSTRY

By Telegraph.—Press Association.

Wellington, July 24.

In introducing in the House of Representatives to-day the War Ministers’ Profits Bill, Mr. J. McCombs (Labour, Lyttelton) outlined the steps taken in New Zealand during the war to deal with excess profits, and compared them with those in Britain. Mr, McCombs eaid that while there had been safeguards in the direction of appeals against hardship in Britain there had been no similar safeguards in New Zealand. In consequence of this injustice had been done to a valuable industry in his electorate, namely, the Woolston tanneries, which had . been considerably harrassed, and while it. had petitioned the House and the petition had received a unanimous and favourable recommendation from a select committee, the Government of the day had taken no action. Other firms, however, had made colossal profits. If this Bill were passed the Commissioner of Taxes would be able to obtain information as a result of which it would be able to advise* the Government as to untapped sources of revenue. It might then be necessary for the Government to bring down a Bill by Governor-General’s message to put the matter on a proper footing. The passage of such legislation would be the means of doing justice as between firm and firm, and a means of finding additional revenue. Outlining the provisions of the Bill, I Mr. McCombs said it provided that every person who had held ministerial rank in the New Zealand Government for the six years ended March 31, 1930, should,.within three months pf the passing of the Act, make a declaration to the Commissioner of Taxes setting out the names of each New Zealand company of which he had been a director during the eight years ended March, 1920. Details of the number of shares held by the wartime Ministers were also to be given. POWER FOR COMMISSIONER. After the receipt of the declarations of the Ministers, the Commissioner of Taxes was to be empowered to call upon each company named to produce balance-sheets and accounts for the three years ending 1915, and for the five years ending 1920. The Commissioner of Taxes would be called upon to assess excess profits of the companies concerned, and then the excess profits that accrued to the Minister concerned. Extra profits were to mean the proportion of the excess profits of the companies concerned to the share capital, and the amount by which the directors’ fees and bonuses, etc., exceeded the average for the three years ending 1915. The object of the Bill was to tax Ministers’ excess profits. Air. E. Langstone (Labour ,Waimarino) intimated that he would move an amendment when the Bill was in committee to provide for an investigation into the war profits of all companies. The Leader of the Opposition, the Rt. Hon. J. G. Coates, said a simple reply to. the references to the Woolston tanneries was that the whole question had ben investigated by a Royal Commission, over which Mr. Justice Hosking had presided. Mr. McCombs, replying, said Mr. Justice Hosking had pointed out that the commission was unable to deal with the question of reward for losses, because that aspect was not included in the order of reference. He again drew the House’s attention to the recommendation of the select committee on the subject of the petition of the empany. The Bill was read a first time.