GOLD EXPORT TAX

Taranaki Daily News, 24 June 1935, Page 16

GOLD EXPORT TAX

DECLINE IN EXPORTS SHOWN. NEED FOR OVERSEAS CAPITAL. Strong pleas for the lifting of the duty of 12s 6d an ounce on gold exported from New Zealand have been made recently by men prominent in the industry. It is understood (says the New Zealand Herald) that direct representations are now being made to the Government, as it is claimed that the future of overseas operations in the Dominion will depend largely on the attitude adopted by the State. Mining representatives state that the tax is the reason given for the cessation of its investigating operations in New Zealand by an Australian group recently. On its export value, gold is worth over £1,000,000 a year to New. Zealand, but this figure has not varied greatly for the past three years, in spite of the continued rise in the price of gold and the increase in the exchange rate. Actually, since the year ended March 31, 1933, the production of gold in New Zealand has declined. In that year, 201,0290 z were exported, but in the following year the export was 9 per cent lower, and in the year ended March 31, 1935, there was a further fall of 12 per cent. EXCHANGE RATE’S EFFECT. Assisted by the depreciation in New Zealand currency and by the rise in the price of gold, the annual export values have increased since 1930, but there was a setback in 1934-35, when the quantity exported was the lowest for three years. The following table shows the export and value for annual periods ended March 31, since 1928:—

For the past two or three years there has been considerable activity in gold mining in the Dominion, but the record revealed in the export figures is hardly one of progress. Unfortunately the yield from the Waihi mine, the greatest producer, has declined in recent years. There has been no development elsewhere which might compensate for this, although numerous new companies have been floated. LARGE SCALE OPERATIONS. It is claimed that mining on a large scale is required to check the fall in the Dominion’s output. This implies the attraction of overseas capital and overseas interests have been exceptionally active lately in investigating likely propositions. The question of the tax, it is stated, will enter largely into decisions as to entering the New Zealand field. The State revenue from the gold tax was £76,313 for the nine months ended December 31, 1934, compared with £89.520 in the corresponding period of the last financial year, a decline of £13,207. Mining men claim that it would be better from the Government’s point of view to wait until the industry was on its feet and earning profits before using the taxnet.

Oz. Value. £ • 1928-29 125.780 517,992 1929-30 117,739 484,157 1930-31 135,213 554,933 1931-32 146,269 607,539 1932-33 .... .201,029 1,188,756 1933-34 182,335 1,366,380 1934-35 161,345 1,334,912