Conflicting Statements by Ministers

Chronicle (Levin), 31 January 1947, Page 7

Conflicting Statements by Ministers

-Press Association '

By Telegraph-

WELLINGTON, Jan. 30. . ' ' The statement by the Minister of ; Rehabilitation that in State housing areas, where community centres are es- . tabiished, the Government agrees to the vvhole of the commereial services and trading businesses being placed under the exclusive control of cooperative societies, is rightfully causing considerable x>ublic concern, " says a stateinent by the Associated Ghambers of Commerce of New Zealand today. "As long ago as September last the A.ssociated Ghambers wrote to the frime Minister asking whether it was the mtention of the Government to grant monopolies to consumer cooperatives in State housing suburbs, and whether sucli cooperatives are to be piaced on a similar basis, as regards laxation to ordinary trading concerns. ' ' The Minister of finance (Mr. Nash) replied 011 December 4: "The Government will facilitate the provision of buildings for consumer cooperative stores, if it is in accord with the desire of residents, but it will not give preferential treatment at the expense of existing private enterprise businesses vvhich have already been establislxed in State housing localities. ' ' The reply to the taxation question was to explain that the prolits, which were distributed to members of the consumer cooperative societies, were not taxed. "We again wrote to the Minister stating that it was not clear whether private enterprise businesses seeking to. enter the held after the establishment of consumer cooperative societies in State iiousing areas would be permitted to do so. Also the Minister was asked whether it was not arguable that ordinary trading concerns should be allowed to make a dividend distribution before income tax became applicable. "OnDecember 23 Mr. Nash wrote: If the community is adecjuately serve'd by existing facilities, whether private enterprise or consumer cooperative, consideration of any application for the establishment of additional shops would of necessity be conditioned by this factor of adequacy, and by a further problem associated with the matter of buildmg material and labour shortages. ( "Mr. Nash said that although tliere were various schools of thought regard mg taxation, he thought there was strong justiiication for regarding a compaiiy as a separate entity for taxation purposes, and for levying taxation upon a company's income before the distribution of dividends to shareholders at a lixed rate- based on invested capital. "It will be seen from the official declaration by Mr. Nash that there was still an opportunity, even under restrict?ive circumstances, for an individual or: private enterprise unit to open. a Jjtore; in a State housing locality," continues' the statcment. "Mr. Skinner now de jlarcs flatly th -e is to be no such opportunity. My assoei-ation has consequentiy written r 1 0 the-' Minister of Finance, who, unfortunatcly, is out of New Zealandj statingl thAi,w,e find it impossible to/recdheile hisj hfatemon't in the correspondehce to ug vHith the stateinent made by Mr. SkiWer. . "We have asked what is-the policy crfi the Govefnment 011 the subject, and in view of the decided eontlict between the two an-uouiicemeui-s, for an early clarification uf the issue. "