ECONOMIC RELIEF PLANS

Taranaki Daily News, 20 January 1933, Page 12

ECONOMIC RELIEF PLANS

FARMERS’ UNION OPINION RECOMMENDATIONS ADOPTED. SPECIAL COMMITTEE’S REPORT. Adopting the report of a special committee set up at the end of last year to consider means of relieving the plight of the farming community, the Dominion executive of the New Zealand Farmers’ Union gave its approval on Wednesday to a series of recommendations to the Government on a wide variety of national topics. . Taxation, tariff, banking, interest and wages, borrowing and unemployment were all the subject of one or more recommendations, and among them were important ones dealing with the banking system, valuation and interest payment. In its report the committee, which consisted of Messrs. W. J. Polson, M.P., W. B. Matheson, R. H. Feisst and H. Seifert, first surveyed the general position, the trend in farm expenditure, and certain other questions intimately connected with the farming community. The committee was of opinion that if a gigantic catastrophe was to be averted, immediate . relief must be provided ■to primary producers by reduced working and capital costs, exploration or further markets to relieve the excessive strain on British consumption, and bonuses on exports where possible. Relief should be given, also, to the whole of the community by the restoration of purchasing power, a reduction in taxation, the reabsorption of unemployed men into their own industries, the creation of a Central Bank to provide a supply of currency to coincide with the demands of trade and commerpe, regulate interest and exchange rates, ration credit and base its policy on service not profit, and, finally, an assurance to capital of that share of wealth to which it is justly entitled, having regard to present conditions. DECISIONS ADOPTED. The committee arrived at' the following decisions, which were adopted by Wednesday’s meeting:—

General taxation: (1) That land tax be abolished at the earliest opportunity as a means of relief to the land-owner; (2) that as “ability to pay” is one of the canons of sound taxation, a universal individual income tax be substituted for land tax; and (3) that the Valuation Department be abolished and . that groups of local bodies be responsible for their own valuations.

Local body taxation: (1) A complete derating of lands for reading purposes; (2) roading costs should be met by the taxation of users of the roads through motor taxation; and (3) that an immediate substantial rebate on rates be the first step toward derating.

Tariffs: (1) That there be an immediate substantial reduction of duties on necessities imported from Empire countries willing to reciprocate with the definite view of inaugurating Empire free trade; (2) that with a view to extending our markets a reduction of duties on necessities be also extended to foreign countries willing to reciprocate with the Dominion; and (3) that such a downward adjustment of tariffs is in keeping with the policy enunciated at Ottawa. >' ''

Banking: (1) That although the banking system of the Dominion has reridered good service, the price extracted by the banks for their services is considered too high; (2) that some form of central bank based on the recommendations of the Macmillan Commission or on the lines of the Commonwealth Bank of Australia is necessary to control interest and exchange, to expand and control credit on the easiest terins compatible with the demands of trade and commence, and to retain the absolute control of the currency and credit of the Dominion in order to prevent violent inflation or deflation. , , - CAPITAL FROM DEBENTURES. In connection with these recommendations, the executive suggested also that the original capital of the Central Bank of £500,000 should be obtained by the sale of Government debentures with a State guarantee and redeemable.. The policy enunciated by the Macmillan Commission was preferred to that of Sir Otto Niemeyer, against whose proposal that the bank should be a company limited by shares the committee was unanimously opposed. Interest and wages: (1) That if stability is to be ..arrived at, both interest ■ and wages must fall in conformity with the national income. Equality of sacrifice of all sections of the community is urgent and. imperative; (2) that wages and interest must be adjusted according to the ability of the industry concerned to pay, and to the conditions which made it necessary to reduce costs: (3) that legislation be enacted enabling the various mortgagors and relief commissions to make reductions on principal in addition to those of interest when • considered advisable and reasonable. Borrowing: (1) That no national borrowing be undertaken for years—either internally or externally—except where the expenditure involved would in no way be a charge on the taxpayer of the Dominion.

Unemployment: (1) That no financial relief be extended to the unemployed without an equivalent return in work; (2) that wherever possible the unemployed should be re-established in their own industry'at reasonable rates of pay.