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Taranaki Daily News, 17 October 1931, Page 6

PUBLIC TRADING CONCERNS. Ono member of a deputation which waited on the Prime Minister a day or two ago hit the nail on the head. Supporting representations in favour of public trading concerns being taxed upon their earnings in the same manner as privately controlled undertakings, Mr. F. .E. Graham said that for 20 years Prime Ministers had approved of the principle of such taxation, but every one of them had shelved it on the ground of expediency. Certainly the facts placed before the Prime Minister were very illuminating. The recent heavy increases in taxation have accentuated the position between private trading concerns and those controlled by the State or by local authorities. The Prime Minister admitted this, but again the question of expediency was raised as well as the difficulty of arriving at a method of taxing public services. The deputation received a promise of consideration, but it looks as though little else may •be expected. At the same time there is no question of the unfairness of the competition. In the case of the gas companies in three cities the new Budget will add over £BOOO to their taxes, while their rivals in the same field of service, electric supply boards, pay none. Such "a lopsided method of raising public funds is not defensible, though on the surface it may not appear very harmful. It is the community as a whole that must, directly or indirectly, provide the funds for the country’s administration. If certain sections are overtaxed and others are not paying their share inequity results, though in the long run the sums required must be found by the community. The subject is admittedly a difficult one to handle. Procrastination will not make it any easier. As an overhaul of the local government system is to be undertaken at an early date the question of taxation of public trading concerns might well be considered at the same time.