GOLD MINING AND THE EXCESS PROFITS TAX.

Hokitika Guardian, 25 June 1917, Page 4

GOLD MINING AND THE EXCESS PROFITS TAX.

At tlie annual general meeting of the Tuapeka Mining and Prospecting Association, held at Lawrence on Friday, an interesting discussion took place on the excess profits tax in its relation to the mining indus try, thesubject having been brought up by Mr W. R. Smyth in his presidential address.

Several members complained of the gross injustice inflicted oh certain gold mining companies during the past year by reason of the imposition of the excess contribution for that year, although in some cases it could be shown that such

companies iii the immediately preceding years had actually been carrying on at a loss. During the discussion it was pointed out that at the time of the introduction of the original war tax measures into Parliament the Minister- iii charge promised the exclusion of the gold mining industry, owing to its being recog-

nised that the war could have I nothing but a hampering and retarding effect on the successful pursuit of the mining business But, notwithstanding the fact that it was the desire of those responsible for the well-being of the Empire—from the economic a ntT financial standpoints—that the gold output of the dominions should not only be maintained, but actually strengthened to the utmost, this killing legislation (which term S might, reasonably be applied to that part of the Finance Act relating to ( excess profits) seems to have been put through without ike slightest regard as to its probable effect. It is, or ought to be. superfluous to | have to point out that gold is the ( one product of the earth that has a | never-varying standard value. Whether plentiful or scarce, its value remains the same ; but who can estimate the value to the Emf pire during the past three years o the output of gold irom the dominions—especially South Africa> Australia, and New Zealand ? During these years - of war the price of labour has increased, and the prices of all material used for mining (mostly iron and steel of various descriptions and explosives) have soared to prohibitive prices. In face of these facts the assistance the industry gets from the Government is the imposition of an excess profits tax.

The result of the discussion of the subject was the passing of the following resolution, on the motion of the president“ That this association invites the attention .of the Government to the fact that an excess profits tax on profits derived frem gold mining is not only an injustice to the industry and those interested in it, but is also inunical to the economic well-being of the Empire; and, further, this association urges the Government to so amend the law during the coming session oi Parliament as to exclude the gold mining industry from the operation of the excess profits tax, thereby relieving it of an unfair and inequitable burden and redeeming Hie promise-made by Ac Minister of Finance at the time of the introduction of the Finance Act.” It was also decided that the above' resolution be brought to the individual notice of Ministers of the Crown the members of Parliament for Otago and Southland constituencies. the various Stock Exchanges throughout the Dominion, and the Employers’ Association of Otago, which body, it was explained, has taken the matter-into its consideration. .