WELLINGTON NOTES.

Hokitika Guardian, 28 October 1924, Page 4

WELLINGTON NOTES.

TAXATION. (Special to “Guardian”.)

WELLINGTON, October 21

Some weeks before the session began an anonymous writer “Justice” contributed some striking articles on Taf?ation and made such serious allegations that .Mr Massey was forced to set up a commission to examine the matter. This writer reverts to the subject in the “ Evening Post ” ami under the caption “Policy or Drift” fpiotes from the report of the commission the paragraph recommending the abolition of the company tax and the substitution of the graduated income tax upon tin 1 incomes Irom all sources of each individual, and goes on to say,

"The only appaient outcome of this report so far as one can see is to make some rich leaseholders on Government lands, who paid no taxation whatever, liable for income tax and to lower taxation generally, Imt lowering the level of the tax does not alter the injustice of it.” “Justice” concludes his letter by asking the Prime .Minister to answer the following questions—(l) Whether he intends to give effect on each individual in aeeorddanee with their income? (2) If so, what steps are being taken now, and when does lie purpose giving effect to this policy? Cl) If he does not intend to adopt the eummis.sion’s report, does he intend to adhere In the present system? (I) If not what alteration of our taxation policy does he propose to make? The Prime .Minister will most likely shield himself behind the fact that he had reduced taxation and that no doubt together with the er.v of “Sound Finance’’ will lie the lleform war cry at the next election. ANOTHER VIEW OK TAXATION. Wo have an organisation in Wellington known as the New Zealand Land Values League, which appears to he only another name for I lie single tax association, 'file Land Values League, if not a product of the Trades Hall, is closely associated with Labour and at its monthly meeting last week the chairman Mr P. J. O’Began, with characteristic political pugnacity had something to say on the changes in the incidence of taxation. He said that alter the outbreak of war when additional taxation was found imperative, there would have been an effective outhurst of indignation, had it boon proposed to saddle the masses of the people by customs taxation with the additional burden, and accordingly it was the correct thing, on that occasion to make it appear that our rich men were prepared to hear their share of taxation. Such a course however, would have been much more honest than what was now proceeding before their eyes. With an audacious disregard for facts, the Premier had staled that lie proposed to bring down taxation to pie war level, hut it was obvious, seeing that the Public Debt had been increased by upwards of one hundred millions, that taxation could not he brought to pro war level. What was intended was to saddle the war debt on the masses id' the people by Customs taxation and to reduce direct taxation as soon as possible to pre war level. There was something unutterably mean in the spectacle presented by the richest men of the country proceeding to reduce taxation on themselves, whilst taking care that it was fastened on the masses of the people. For the six months to September .‘lO. the C'ulom.s revenue showed an increase of IgJ.'Ml,<loo and the total for the period was L'A.of7,ooo against an estimate lor the year ol Ci JIuO.OOO. SHODDY WOOLLEN GOODS. The woollen companies of New Zealand have been sulferiiig from the competition of imported goods, and it is alleged that a good deal ol shoddy is entering the country. Shoddy consists of tahries made up mainly from woollen rags, and the ipmlily of the sliodi|\ depends open I lie ipiantil v ol puro w OO I blended with the prodllet ol wool 101 l rags. It is alleged that shoddy made almost entirely of woollen rags and tailoring pieces has been imported into the Dominion, the landed cost duty paid being about Us (id per yard. It is als.l alleged that the woollen mills an" anxious to have ibis shoddy liarred enlraiue into the country more in the interests ol consumers than in their ow n, which mil orally will he accepted with the proven bial grain ol

salt, lint shoddy is coining into the country and so long as it is clearly indicated that it is shoddy and that the consumer or purchaser is not under anv delusion on the matter it is difficult to see how the inferior article could, lie kept out of the country. The New Zealand woollen mills are suffering because they are being undersold on good sound fabrics. The costs ol production in New Zealand are nee. essarilv higher than they are in Europe, and the raw material costs the local companies more been use they have to compete in the open market for supplies against llradlord and Continental buyers. Me have yet to reckon with Germany in the textile trade. Some 'people are wondering 'whether there are too many woollen mills in the country for the trade oflering.