MR WLFORD’S SPEECH

Hokitika Guardian, 16 February 1923, Page 1

MR WLFORD’S SPEECH

H-vUeUmi Times.) A 1 li-atitl o of the Ad.ness-in-j>,.|>lv d. l>:ito wa*. *■! course 1110 s|,t:Clll .p-liv'cred i.y tlit 1 l.oadcr <>f the OppoML i:11 in moving ;l in-viinlidon, c .Until'hii'iit. Mr Will.nil -iMinus to have poii't'i r.irtl his i-‘sk with skill ami with vigour. His reimuks oil ihe 't'"-iit linimcKil JA't urn wort' jnstilietl, ,OI ‘ wink' noticing tlio appreciable redmLmi, that lias been ellYncd in the public expenditure bo pointed out. as Ini'V flout', that this is equivalent to a confession of guilt, since it is an iicknnwledgemciii that Mmiste.s had neeii recklessly overspending. Wo tin 1 not '(i* hmv the (Government e*n e>- | enpe from or oift'ctivt'ly answer tins Ci 11 it-i-'in. Touching on the railway ligniv.- Alt AYilford showed that when interest i- computed at 15i per cent, on capital cost there still exists a very heavy deficit. The Opposition header however, need not have figures ‘ n such low hnsis as 31 per cent, which is iniirli below tlio actual charge, am! as we showed the ether day, on the milch more nearly accurate basis nf •> per cent, the Railway Department made a loss during the first forty weeks of the current financial year averaging about £3750 a day. lint the best part of Air \Yilford‘s speech was that in which he attacked tin* existing system of company taxation. 1 A a careful description of the effects cl the system the Opposition header showed llow it inevitably raises the cost ol living, how it coni l ib ! dos towards unemployment. and how it depletes the fund available for loans to farmers by driving capital into investments where high rates of taxation on income derived may be avoided. The investment of money in mortgages and the employment of capital in joint stock companies are discouraged in favour of the purchase of tax-tree bonds and local body debentures the income from which i- tnxml at a low rate. Tn this connection Air AVilford east some daylight oil tin' recent conversions "f tax-free ■!1 per cent bonds into taxable o', per cent stock, his reading (| f Hie law being that where these bonds arc held by a. leader domiciled outside the Dominion they remain exempt from taxation, notwithstanding the conversion. Tf this is the rase the flovernment lias merely provided means by which seme largo companies with headquarters in Australia are able to obtain nil additional 15s per cent on their loans to the Dominion. This, however, is a detail, though a not lnmiieortant one. AVo think Air AYilford performed a service to the country by so ably exhibiting tV evils of the high protaxation rompaiiv enniinil? and thus strengthening the case for revision. Tt is nrohahle that in the course of the debut" no 'Reformer will attempt to combat, the Opposition Loader's farts and arguments concerning this question'. \t tlm same time, judging by experience, there seems little prospect of obtaining relief from this burden which presses upon the whole eommunitv except the wealthy individuals, until the Reformers are removed from office.