TOPICS OF THE DAY.

Waikato Times, Volume 118, Issue 19665, 27 August 1935, Page 6

TOPICS OF THE DAY.

Motorists and Taxation The North Island Motor Union voiced an undoubted grievance when it raised a protest against the raids on the Main Highway Fund and the diversion of the money to other purposes than for that it was ostensibly raised.

It is just right and proper that the motorist should be taxed to pay for the roads and their upkeep. To that he raises no objection; but what he rightly considers an injustice is the diversion of the monev into other channels.

To use a sectional tax for general purposes is wrong in principle. Money for general purposes should be raised by general taxation. It may be a strong temptation in a time of stress to use money raised for a special purpose for something else, but if that temptation is succumbed to, the money so diverted should be regarded as a loan and the amount repaid later. This is not being done in the ease of the Highway Fund, for the president of the Motor Union pointed out that the raids have left the Highway Board short of funds, and to make up the leeway the Government handed hack the cash hut charged the Board interest on money that rightly belonged to it. Such a procedure cannot he justified. It would not he tolerated in private business.

Tariffs Gone Mad The Economic Committee of the League of Nations has published nn interesting study of the trend and effects of agricultural policy in the countries of Europe. In a memorandum accompanying the committee’s report Sir Frederick Leith lloss sets out some instances of the length to which agrarian protection has gone in Continental countries. lie quotes duties equivalent to over 100 per cent, on wheat imports into Germany, France and Italy.

Reference is made to a duty of 124 per cent, on chilled beef imports into Germany, imports of frozen meat being virtually prohibited b.v import, regulations. In 1025 Germany imported 100,000 tuns of beef and veal, and in 1933 only 000 tons. Since last year quotas have been used in France to prohibit the importation of meat, except mutton.

Imports of butter into Germany are limited by quota, and the dutv last year was equivalent to 93 per cent, of the London price of Now Zealand butter, 'file minimum French duty on butter is equivalent to 181 per cent, of the London price, and the import duties into lialv and Belgium also are prohibitive.

Those instances of extreme protection in Europe are enough to explain the eagerness of Denmark, Holland and other Continental countries with food to export, as well as the Dominions, to retain their share of the British-market, which still buys almost ns much food from oversea ns in more normal times.