INTEREST CHARGES

Wairarapa Daily Times, 18 January 1933, Page 6

INTEREST CHARGES

REDUCTION DEMANDED. WELLINGTON, Tuesday. After hearing it moved and seconded, the representative meeting called by the New Zealand Farmers’ Union passed a motion that the Government be urged to bring interest rates in New Zealand down in conformity with reductions in other parts of the world. In proposing the resolution, Mr 11. Seifert quoted returns showing that interest formed an oppressive proportion of farmers’ costs.

(Seconding the motion, Mr A. E. Harding (Dargaville) said that a substantial reduction in interest would give more immediate relief than any other proposals being considered by the meeting. New Zealand had about the ■highest rate in the world, so there was plenty of room for a reduction in this country. “In the hands of the Government is the power to give relief to a very great extent from the trouble we are in,” Mr Harding said. The reduction would benefit every section of the people except those with money on fixed deposit. ■Proposing that the land tax be abolished, and that the income tax be substituted for it, Mi W. 18. Matheson asserted that the principle of class taxation, such as land taxation, was wrong. The land tax imposed a handicap on anyone trying to earn a living on the land, and the result of the imposition of a special tax on those who took up land was to hit at those who were making the best use of the country. - The motion was carried.

The meeting also passed a resolution that rating relief, either by way of bonus or by way of the petrol taxation funds, should be given to all rural lands as a preliminary step towards the complete derating of farm lands for roading purposes.

“The Government should set an example to the people,” said Mr J. D. Hall, in moving a motion that Government expenditure, which had not been reduced during the last three years, be now definitely brought down to an amount which the Dominion can afford to pay. The motion was carried unanimouslv.

Other proposals were referred to the executive for consideration. These included the following:—“That a mission be sent to Great Britain to arrange for conversion of New Zealand loans to lower interest rates.” “That legislation be provided to give the Court, on the recommendation of an Adjustment 'Committee, power to review both principal and interest in dealing with vendor mortgages when deciding applications for relief.” One of the motions carried by the meeting read: —“That there should be an immediate substantial reduction in our existing tariff rates, particularlj* with the Mother Gountry and the rest of the Empire, and that the policy of the Government should be to effect gradual periodic reductions in those rates until Empire free trade is realised. (P. A.) ,