WORK AND TAXES

Evening Post, Volume CIX, Issue 100, 30 April 1930, Page 12

WORK AND TAXES

BUSINESS MAN'S IDEAS

"EQUALITY OF SACRIFICE"

THROUGH TKE CUSTOMS

"SVith over fifty years' active experience of business in New Zealand, Sir Harold Beaucliamp was asked by "The Post" for his opinion on the subject of. solving tlie employment problem in New Zealand. He said he had read with considerable interest the able and comprehensive report on the question of unemployment'recently submitted to the Government by gentlemen who were appointed' to investigate and formulate, recommendations with the object of dealing, in a comprehensive and permanent manner,!with that all-absorbing question. This problem, he said, is engaging the earnest attention to-day of statesmen and thinkers in all parts of the civilised world. "Many panaceas have been suggested," said Sir Harold,, "but", so . far, none, in my opinion, have come within the bounds-of practical politics. That recommended by the New Zealand Commissioners, for the creation of a sustenance fund by the levying of a polltax on all classes of the community— workers and employers alike—establishes the principle of equality of sacrifice, which is most commendable; but I am inclined to think that it would be difficult, nay, almost 'impossible,, to collect. "It would result in ceaseless irritation on the part of workers, who would have to submit to the deduction of this tax from their weekly wage, for one thing. Moreover, having regard to the spirit of the ago, I fancy it would end in an agitation on the part of the workers to obtain from employers an advance in wages that would amply cover the amount of the tax for which they were responsible. Again, I, can imagine how keenly residents abroad, called, upon to pay taxes for the relief of unemployment in their own countries —Great Britain, for example—would resent the decTuction of a special tax from dividends on shares held by them in public companies operating, in this Dominion. Still, one has to recognise that in this eputnry, as well as others, there will be at times a large number of people out of work, and these and their families 'must be temporarily provided for. That is of paramount importance. '' The two representatives of Labour on the Unemployed Belief Commission to which I have referred —Messrs. Boberts and O'Brien —have already admitted that there should be equality of sacrifice —that is in creating^ sustenance fund for the relief of those unable to obtain work. Assuming that this principle is generally admitted, it seems to me that, in order to attain that object, it matters not in what shape or form the fund is created, provided, of course, it be levied upon an equitable basis. ' TAX ON TEA AND SUGAR. "Now, instead,of the poll-tax suggested by the commission, I would advocate tin? levying of a Customs duty of Id per 1b on sugar and 3d per pound on tea, which;, on the' quantities of both articles imported for the twelve months ended 28th February, 1930, would yield no less than £809,627. These, duties should be specifically earmarked and set aside for the solo purpose of re-. lieving unemployment. The duties as collected could be paid over to, say, the Public Trustee, who would be called upon to pay interest thereon at, say, 4 per cent, per annum, varying according to circumstances, on daily balances. As required, municipalities, and/or county councils or other, properly\ constituted authorities dealing with unemployed, would, by requisition, obtain grants in .aid from the Public Trustee/ such grants, of course, being based on the numbers of men unemployed in each district. In order not to compete with those already engaged, wages for those unemployed should be fixed ,at, say, less than 20 per cent, below the ruling rates for unskilled labour." THOSE WHO WILL NOT WORK. Tho question was asked, what ■ of those who will not work?" : '..■■' In reply, Sir Harold explained that "except in eases.of illness or physical infirmity, no payment whatever should be made to any person who is not .prepared to work to the satisfaction of those by whom he- is engaged, i "In prosperous limes (he went on) there should be at the end of each year a very substantial addition made to the fund administered by the Public Trustee, and this, in course of time, would assume such proportion as would enable all cases of unemployment to be relieved without calling upon the Government or public bodies for .assistance, as at present. "THE JEEE BREAKFAST TABLE." "I daresay' that sorno people may criticise my scheme on tho ground that I am. proposing to interfere with the 'free- breakfast table' by taxing such universal commodities as' tea and sugar." •' ; "Is there, or was there,, ever a free breakfast-table?" "No; it is, in effect, a merely polir tical phrase. But if the point is raised as it may be, my reply would be that the duties I propose would, in all probability, bo less thatv the poll tax recommended by the Commission. In the case of a family of five I estimate the duty on sugar would,amount to not more than sixpence a week, a mere bagatelle compared with what such a family would pay for amusements. "Further, the cost of collecting duties on tea and sugar would not cost the country anything worth mentioning, whilst everyone would then contribute his quota." IS THE SCHEME UNDERSTOOD? Eeforence was made by Sir Harold Beauchamp to the difficulties experienced in France as in other countries iv providing for social services. In Franco an act to provide for sickness and'maternity benefits and unemployment camo into operation at sth February of this year. The measure was actually passed on sth April, 1928. Employers and workers all make contributions, but naturally their particular industries hear tho burden. The-re is a <rreat outcry against the scheme and ft is attaiked on all sides by all interests, for the burden has to be borne by industry. The scheme, however, has come to stay and French industry, as has been pointed out, will havo to accommodate its back to a burden which is already carried by ISnghsh, German, and Polish industry. Sir Harold didn't think the New Zealand proposals were sufficiently understood by all classes in the community, but it was of the highest importance that everyone should know beforehand what it had been proposed to do before what was now a suggested _ scheme found its way, as it might, into the statutes of the Dominion.