WELLINGTON NOTES

Hokitika Guardian, 28 March 1924, Page 1

WELLINGTON NOTES

TAXATION. ITS DISTRIBUTION AND INCIDENCE. (Special to “Guardian”.) WELLINGTON, March 2G The controversy between the Prime -Minister and “Justice” concerning the distribution and incidence of taxation still runs on without tiie disputants appearing to draw any nearer to an agreement, even on fundamental principles. “Justice” opens his third article in the “Post” with a very generous tribute to his antagonist in which he states that “by his courage, his tenacity and great ability, Mr Maisjy has won his way to tho foremost place, not only in our country but throughout the British Empire.” The Minister may blush to find himself exalted above all the contemporary statesmen of his race, but lie cannot fail to be gratified by so high a eulogy of his worth. Having delivered himself of his breathless appreciation, “Justice” proceeds promptly to make it clear that he “differs most profoundly” from Mr Massey “on some of the greater political issues of the day.” He does not, however, break a great deal of fresh ground nor make any new points of striking importance, lie claims that the Prime Minister has made no attempt to answer his contention that the present system of taxation is Inequitable, and that therefore the contention must ho unanswerable. Rut .Mr Massey, of course, takes up th* stand that the farmers, in their capacity of producers, are entitled to exemption from income tax and that this constitutes no inequity. FAVOURS FOR FARMERS.

It is on this point of special favours to farmers, on account of their oesupatioii, that the whole controversy turns. .Mr .Massey has introduced the further point that when the farmers wore brought under the operation of the income tax during the war a promise was made to them that when peace was restored and the country’s finances back to normal they would be relieved of the li mien. But, as “Justice” has pointed out, this promise always was subject to the approval of Parliament and could 11 it be taken to exempt the farmers from income tax for all time. But tho main point—the policy of exempting farmers from this particular tax is capable of further argument, and if the Prime Minister had given more relief to the poor producers and less to tbe opulent ones probably he and his critic bv this time would bo approaching an amicable agreement. As it is, "Justice” after quoting further figures in support of his contention, demands that “a public and impartial investigation of the facts shall he made by unbiased men, quite free from political party and class interest.” This tippcnrs to Ho u rc»isou*iblo proposition which Mr Massey is not likely to

ignore. SANE CO-OPERATION. The speakers at the ceremony of "turning 011 the water” at the Orongorongo tunnel, which is to largely supplement Wellington’s water supply, joined heartily in eulogising the manner in which Mr Robert Semple’s company of co-operative workers had carried out the undertaking. After the .Mayor had expressed his high appreciation. Councillor M. L. Luckic stated Hud the late Mr Morton, engineer to the Council, entertained the gravest doubts as to whether the work could bo carried out by private contract, and had repeatedly told the council that it could not be done by contract. Mr Semple had always been opposed to “go slow,” and had amply proved his views by the manner in which the Orongorongo tunnel had been pushed ahead. A great deal of credit was due 10 the men who planned the work, a very great deal was due to those who

did the work, and Air Semple and his men were entitled not only to tho financial benefit, which no one begrudged them, hut also to the eiedit of Laving originated a working system which would go a very long way in solving the labour problems in New Zealand. Subsequent speakers warmly endorsed Councillor .Buckie's words, and Air Semple and his associates had good reason to be gratified by the fiank recognition of their excellentwork. "BUT.” The "Most” while acknowledging the success of the experiment at Orongorcugo cannot quite bring itself to believe that it lias solved a great la horn problem. “It appears to us," it says,

•■that Mr Semple’* party was composed altogether of P'chcd men, capable of working without supervision. There were no duds. This made the task of sharing work anti proceeds simple. No doubt the cooperative principle may be greatly extended by the organisation of similar parties, with advantage to the workers and those for whom they labour. But all men are not equal. Some require S'lr.o.rv ision. For such, co-operation upon a basis of equal sharing present* many difficulties. These difficulties mav be overcome ; and we do not suggest they are insuperable. We readily admit that the Semple party lias given a valuable demonstration of the worth of co-operation : but while that, demonstration proves much it does not prove everything.” And of course it would be possible to assume too much Imm this demonstration. The right type of men and the right kind of dirj-.lion are essentials, but given those, as they were at Orongorongo, success seems to be assured.