POTENTIAL CAPITAL LOSS TO AUSTRALIA

Chronicle (Levin), 12 April 1946, Page 5

POTENTIAL CAPITAL LOSS TO AUSTRALIA

| doubhe taxation hurqle for manufacturers Received Thursday, 9.55 p.m. sydiVxjy, April 11. I The erectipn of a £5,000,000 factory ; at Tomago, near Newcastle, has been postponed indefinitely by Courtaulds, Ltd., the worlcDs biggost textile manu facturers, owing to double taxation. | Addressing a meeting of shareholders in London yesterday, the compa'ay chairman, Mr. S. A. Courtauld, said tlxe present rates of Bnglish and australian taxation, put together, made it lmpos sible to manufactijre in Australia on a competitive basis. "We have a site for a rayon yayn and staple fibre factory in Australia, but to v/hat extent and how soon we ca,n start depends very largely on the re moval of douhle taxation," he added. Many English firms planning to expand in Australia will be held up by the necessity of paying both English and Australian taxes, and the potential capital loss to Australia is tens of mU lions. It is believed that negotiations for revising double taxation are proceeding between Britain and Australia. When Mr. Chifley rer.ches London, he and the Chancellor of the Exchequer (Dr. Hugh Dalton) will confer on the cjuestion. The proposed factory will cover 1780 acres and emnloy 5000 people. Qourt aulds were having trouhle with the local authorities about water rates when the Nufi'ield and Victoria -rark m cident occurred here recently, and went so far as to investigate an alternative site in South Australia, but the matfcer was satisfactorilv arran?ed._