GOVERNMENT TRADING

Hokitika Guardian, 6 February 1929, Page 2

GOVERNMENT TRADING

SIR GEORGE ELLIOT’S PROTEST. (By Telegraph—Press Association). AUCKLAND, February 4. At the annual meeting of shareholders in the Auckland Gas Company today, the chairman of directors, Sir George Elliot, drew attention to “the gravely serious affect that is being produced on the private industrial life of the country in consequence of the non-taxation of governmental and 'Municipal trading concerns in New Zealand.” Sir George continued as follows: “Land and income tax and local rates paid by the company amounted t( £25,799 19s 8d last year, and that is equal to s]d per 1000 'feet on the total amount of gas sold; in other words, gas-users in Auckand paid 5£ per 1000 feet on all gas they consumed by way of indirect taxation. Users of electric light and power, on the other hand, paid nothing owing to the fact that, with perhaps one exception, Government or municipal trading concerns are exempt from taxation. Rates and taxes are, of course, necessary to carry on the activities olf the country, and why governmental or municipallyowned industry should be exempt is beyond comprehension. The present state of affairs means that the burden must be carried by the private trader, and since Government and municipal activities are being extended, the burden will increase and may become unbearable. “ If there is one thing that saps tho vitality of a nation more than another,” Sir George added, “it is paternalism in government. It puts brake off the wheels of industry, and it closes the door of individual effort. Unless some Government some day awakes to the (futility of this Commu.nistic dream, it can only he a question of time till certain large concerns, apart altogether from the gas industry, will he forced seriously to consider closing up the New Zealand portion of their business. If that time is allowed to come it will be a sorry day for the Dominion.”