TAX ON GOLD.

Waikato Times, Volume 118, Issue 19659, 20 August 1935, Page 3

TAX ON GOLD.

NO REDUCTION BY GOVERNMENT. STATEMENT BY MINISTER. A definite statement that the Government had no intention of lifting or reducing the tax collected on gold produced in the Dominion was made by the Minister of Mines, Mr C. E. Macmillan, in an interview with a Christchurch Press reporter on Wednesday. “I do not think that the gold tax is harmful to the mining industry at all,” the Minister said. ‘They say without it the propositions affected could be successfully worked. But what would be the position of those propositions if the exchange were taken off? They would all be bankrupt. They are merely working on the premium created by the exchange. In spite of what is said about the effects of the tax on the industry, the mining industry is developing rapidly.

High Price For Gold

“\Yc are only asking the industry to pay back a part of what the Government gave when it raised the exchange rate a further 15 per cent.,” the Minister said. ‘‘The price of gold has appreciated by 100 per cent, or more. What would the people in the cities say if the prices for primary produce rose similarly and then the Government was asked to give assistance by way of a premium? The whole of New Zealand, in fact, would raise hands in horror if butter and cheese and farm produce appreciated as much in price and the Government gave additional assistance by adding a bonus of some sort. The exchange rate was put up to assist—to assist industries which had experienced a depression in prices to an extent of more than 50 per cent. But prices in the gold industry have appreciated more than 100 per cent. over pre-war prices. Cerium interests stale that they are entitled to a premium just the same as every other commodity which is exported. Wo do not think that they are entitled to a premium when the price for their product hnsyipprceiated so much. Certainly the Government does not intend lo do anything about reducing the tax. In fact, we have received no specific request from the industry us a whole, although some individual companies have approached us. Tax of 12s 6d An Ounce. “It has also to be remembered that (lie Government lakes only It’s Gd an ounce as tax, and that the Government is still giving Ihe producers a premium j on gold valued at £7 an ounce. The full premium amounts to approximately £ I an ounce, so that even with I he tax off they have still a premium of 7s Gd in addition to I lie market price, which is a highly appreciated price at (hat. As a farmer, I would like it very much,” Mr Macmillan 'said, “if, supposing I were receiving 2s per lb for drill ter-fat, the Government gave me another 25 per cent, on lop of (hat. In fact, l hear people condemning the j Government for giving the tanner J the benelit of the higher exchange, hut I .still arguing that it was right and : proper that the gold mining industry i should get the full amount of the | premium. There is no justification to assist an industry whose prices have doubled in value.” Mr Macmillan also said that llit* legislation provided ihal as llie exchange came down. I lie lax on gold I would he reduced in proportion.