NOT PRACTICABLE

Bay of Plenty Beacon, Volume 3, Issue 212, 13 September 1940, Page 5

NOT PRACTICABLE

DISTRICT AEROPLANE FUND DAIRY COMPANY'S PROPOSAL NEGATIVED BY MINISTER Relative to the suggestion' before the annual meeting of the Rangitaiki Plains Dairy Company's suppliers. for the presen- . tation of a 'Spitfire' fighter 'plane to the Royal Air Force the directors have now received a communication from the Minister of Finance, the Hon. W. Nash. The letter states definitely that the donation of a 'plane from the Company is not practicable. The letter reads: — With reference to the proposal of "the Rangitaiki Plains Dairy Company donate £5,000 for the lighter "plane, it will have been noted from, press announcements in connection with the fund that the Government has de-"-cide'd to set aside £NZIOO,OOO from overseas funds for the purchase of planes for presentation to the British Government. In order that all parts of the Dominion should have the opportunity -of adequate representation in the •gift, it has also been decided that 'collections shall be made on a provincial patriotic district basis, and that the British Government will he requested to name the planes pre"sented after the districts where the moneys were raised for their purchase. In terms of the Emergency Regulations, all moneys raised are "to. be applied as follows: — (1) The first £NZIOO,OOO for the purchase of aeroplanes for the Royal Air Force. (2) Any balance beyond £100,000 'for' the purchase of aeroplanes for 'the defence of New Zealand and/or for the training of pilots under the Empire Air Training Scheme. As all moneys raised arie to be paid to Public Account and thereby be'come public moneys under the Public Revenues Act, it is considered ■that donations come within the scope <of section 30 of the Finance Act, 1940, as a gift to the Government for war purposes and as such are exempt from gift duty. The question of authorising companies to make donations to the Aeroplane Fund on similar liines to donations to Patriotic Funds, as pro "vided in Regulation 32 of the Patriotic Purposes Emergency Regulations, is under consideration by the Government. The question of the allocation of sterling does not arise as the gift would be merged in the Auckland /Provincial District Fund and would form parf of the £100, 000 New Zealand already agreed upon.

POWERS LIMITED COMPANY CHAIRMAN'S \ STATEMENT The proposal discussed at -the annual meeting of the Rangitaiki Plains Dairy Company was the dona lion of £5000 sterling for purchase of a fighter plane to be presented to thie Royal Air Force in recognition of its achievements, the gift to be from the Company subject to sterling being made available and entirely free from any restriction. The meeting instructed the directors to investigate ways and means' of ; giving effect to that proposal. The directors duly caused the matter tobe fully investigated and as a result thereof it did not appear that the proposal was within the powers of the Company. of Finance was written to and his reply is published in this issue. Two things are clear from the Minister's letter: —■ (a) That any donation from the Company would lose its identiffy and be merged in a Patriotic District Aeroplane Fund. (b) That until the Government should issue further regulations authorising Companies to make donations to the Aeroplane Fund as distinct from Patriotic Funds the Rangitaiki Company would have no power to make such a donation. For these reasons the directors do not intend to convene another meeting of shareholders for further consideration of the matter except upon a formal request of shareholders. We have been asked by Mr W. A . McCraeken, Chairman of Directors of the Company, to publish the above statement as the matter is of Interest to both shareholders and public alike.