WELLINGTON NEWS

Hokitika Guardian, 28 July 1930, Page 2

WELLINGTON NEWS

BUSINESS AND TARIFF: , (Special Correspondent.) WELLINGTON, July 24. Politics and business become rather closely related this week owing to the imposition by r Parliament of ..'further tariff reforms’. , It is a commonplace to state that there is keen opposition to'the- increases in the tariff, and coming immediately after the proposed dole tax, business • people are; somewhat restive. One can concede the point that no tariff, however skillfully drawn up, wil' give general .satisfaction, but business people assert that there is not the least bit off; science about the new tariff. The Government wants revenue and has selected such items as were considered capable of bearing, increased burdens. Business people agree, that the nation’s accounts must be balanced at all costs, but they are unanimous in their belief that the balancing should be effected by the excess weight being taken off the expenditure side. So far the'Government has pot given any indication of curtailing expenditure in a geneva)'wav, but perhaps the Government is being prejudged for we have yet to learn: the budget proposals, and reduction of expenditure may be included in that. Business people believe that a well-considered scheme of retrenchment would be favourably received by the community, provided the retrenchment was general and not confined 1 to a few classes. While many of the new Customs duties cau .be defended they are not alb of that character. The substantial increase in . the .duty on motorcars of foreign-origin can bo ,tolerated, for it is very desirable, that expenditure in this direction should be greatly reduced. For some time past the imports of motor vehicles have'formed the bigr gest item in our list of imports and the bulk of thejmoney lias gone to the United Statqsj ithe -country'that shuts out our produce. ; . !. " While, the increased .tariff on motor cars may_ U ie extra tax on petrol! is? certain to cause a good deal of The high cost of motor cars is certain to cause owners of pleasure motor cars to .be a great deal .more economical:;..'it will on the other hand follow rather, heavily on the owners of commercial motor velrcles. The carriers mfisti increase their charges, and that will',fall on 'the whole community. Business people, insist that before these additional heavy burdens are' placed .on the community, the Government must prove -that every possible economy,’lias b.een- affected, aild that cannot:,|ie.-.s.h.o.}yU,fit.present. The best that can .be said of taxation is that it is not so disastrous a policy as that of unrestricted "borrowing of motley year after year, not only to make up deficits in revenue accounts, hut also to pay interest on previous loans.

A board of directors which went to ■shareholders for more money without being ah|e. t |o' v ,shqw that every possible ccoh(>i^^iffi^l:':been , .vpracticed would receive help from the, shareholders: - , 'i’he" Government may be likened directors of a company, and should act accordingly. The increased taxation will hurt the community in many ways and the primary producers will feel the effects severely; The new duties will necesI sarily raise the cost of living and lead to an expansion "ttf unemployment. Unemployment is the result of the inability to employ labour, and inability to employ is due to the lack of funds to meet the appaling costs of production, and .the limited funds are to be further reduced through taxation. The depressioii 'is more likely to be accentuated than eased, and unemployment will inqijepsfe;rather than decrease. Tliis/.jis{j : ;-time for, economy and retrenchment- ;and. not a time for extracting funds from the already impoverished “We must reduce costs of production all round,” observed arltn|ines4S man, “and in so doing bring aibU%;the cost of living. Labour . must be rationalised, and the principle that a 'worker has the right tto work, at any job that he can tackle must be recog, nised and preference to unionists, which is a negation of the principle, must he abolished.”