HEAVY TAXATION

Timaru Herald, Volume CXLV, Issue 21185, 4 November 1938, Page 5

HEAVY TAXATION

Economy Must Be Exercised Public Works Policy 111-Timed Chambers of Commerce Conference By Telegraph—Press Association AUCKLAND, November 3 An appeal to the Government to use every effort to avert disaster by exercising the strictest economy in administration, and by realising that, desirable as may be large social amenities and high wages, they can be maintained only during times of prosperity and rising national income, and that it is impossible to maintain them at the same rate during times “of depression, was made by Mr A. G. Lunn during his presidential address at the opening of the 1938 conference of the Associated Chambers of Commerce, which started at Auckland this morning. In opening the conference the Mayor, Sir Ernest Davis, extended the delegates a hearty welcome to Auckland. He said to-day's atmosphere of peace and goodwill might well regenerate feelings of profound thankfulness for our deliverance from the recent international tension. Tlie Mayor expressed surprise at the reports that capital was leaving the Dominion, and said New Zealand re-

mained as good a country as ever, and in his judgment was still the best investment for local capital. Patriotism was best reflected in the consistent protection of the land we love, and the desire to serve. As an Impartial observer he held that the Government of the day was entitled to receive from every section that measure of co-operation and good will essential to successful administration of the affairs of the country. Doubtless the Government would welcome any initiative, which sought to subjugate party politics and sectional policies to higher ideals, understanding, tolerance and mutual trust. This was his conception of patirotism. In his presidential address, Mr A. G. Lunn, of Auckland, said it was no concern of their organisation which political party was governing the country. They had co-operated with, and criticised the actions of many different Governments, but they had refrained from political partisanship. “Taxation a Crushing Burden” Referring to Social Security legislation and the company tax of a shilling in the pound on profits Mr Lunn said this addition to the already crushing burden of taxation borne by companies must have a most serious effect on joint stock enterprises and he viewed the outlook with grave concern. “Experiment as we may in the Dominion,” said Mr Lunn, “we cannot get away from the fact that if we are to live within our means, meet our debts and provide employment for all, we will never do it by restricting production of wealth, nor by consuming that wealth at a pace that cannot be maintained, nor shortening working hours, nor by raising wages, nor by borrowing for unemployment. We must work harder to increase our output without increasing costs, save income to meet debts, provide capital for productive enterprises, and build up reserves against a rainy day.” Mr Lunn mentioned the huge Public Works programme being continued this year with more than £20,000,000, not merely from revenue, but also from borrowing, and the huge total of 23,000 men now employed on Public Works. This activity had a decidedly inflationary effect and undesirable reactions. Mr Lunn quoted trends in Sweden and Australia to support the contention of the Associated Chambers of Commerce that New Zealand’s present Public Works was ill-timed, and that the Dominion should adopt a system of scheduling Public Works, both national and municipal, in order of importance with a view to withholding non-emergency works in times of prosperity, and putting them into force as unemployment becomes progressively worse.

“Trend to Spirit of Dictatorship” The tendency to make Ministers of the Crown final arbiters in a wide range of matters was unwise and unfair, and must, if unchecked, tend to a spirit of dictatorship, said Mr Lunn. Any measures taken by authorities to Increase the personnel of the defence forces would have the full support of the commercial community, said Mr Lunn.

Finally he urged that the Government should use every effort to avert disaster by exercising the strictest economy in administration, by restoring confidence in the future among commercial, industrial and financial classes of the community, by ceasing to interfere and compete with businesses of the country, by reducing the enormous burden of taxation under which they are now staggering, and by realising that, desirable as may be large social amenities and high wages, they can be maintained only during times of prosperity and a rising national income, and that it is Impossible to maintain them at the same rate during times of depression. Mr Lunn moved the adoption of the

annual report and balance sheet. Hie conference is being attended by 50 delegates from various parts of New Zealand, and also visiting representatives of trade organisations. After the opening addresses the wives of the delegates were entertained by the Auckland Chamber at morning tea. Apologies were received from the Prime Minister (Mr M. J. Savage), the Associated Chambers of Australia, and various commercial organisations. In welcoming the delegates, Mr A. Ely, president of the Auckland Chamber, said there had never been a more important conference than the present one. As far as industrial relations were concerned, the conference would be presenting to the public the views of a very representative body of men.