“And Your Parishioners Will Ever Pray.”

Hokitika Guardian, 9 May 1931, Page 7

“And Your Parishioners Will Ever Pray.”

(The Associated Chambers of Commerce of New Zealand). To those optimists who believe in the possibility of a political milienium, the i approaeliementr last session between the major parties in the Legislative Assembly, must have been encouraging. All' Forbes showed great strength 01 character, courage and determination, and in this no doubt, he had the hacking of his Party. Mr Coates and Ids followers displayed tolerance and friendly co-operation to help where they might easily have hindered. The result has been the passing of measures of retrenchment (as distasteful to politicians as they are to business men in similar circumstances) which will do much to ease the economic situat-

Such zeal on the part of these parties in the House tempts the Associated Chambers of Commerce to express a hope that the Prime Minister, supported by the Leader of the Opposition, will take steps to carry out a long standing pledge to put all Government and Public J3ody Trading concerns on the same footing as those conducted by private enterprise. This policy figured in the platform of both parties at last election and has, m fact, been the subject of many expressed, but unfulfilled promises. Neglect in this direction has seriously affected the Government’s revenues and now that the Minister of Finance is experiencing so much trouble with his Budget. it seems strange that he lias nor turned his attention' to a hitherto untapped source of revenue. It has of ten been stated that the influence of Public Bodies’ representatives (of whom so many are also members of the Legislative Assembly, has been too strong to permit any Gov. eminent to attempt reform in this direction. Mr Forbes, however, has shown much rugged disregard for poll tioal consequences, when convinced of the righteousness of his cause, that Hint explanation can hold no longer. Untaxed Public Body Trading has two results: Firstly, it narrows the field of taxation in an ever-increasing degree, and secondly, it places a handicap on private concerns, which pay ah' classes of taxation, so that they have no chance whatever when in competition. By way of illustration, two instances will serve to show this disparity. In Wellington. Christchurch and Auckland, the City Councils and the Gas Companies are in active competition in the fields of light, heat and power. The Gas Companies in 1930 paid U 03,078 in land, income and debenture tax, whilst the Electricity Departments in these three cities with dfielosed profits of £278,072 (see P.W. Statement, 19.30) paid nothing. Further, the Gas Companies are compelled to place a two-penny stamp on every receipt—Public Bodies are exempt from this tax. Wl v? In Christchurch the Electricity Department goes even further. It carries out wiring contracts, sells electrical supplies of all kinds, and even holds sole agencies with the result that electrical trading concern, many of whom were established long before Municipal Trading came into existence, are being driven out of business one by one. The Income Tax these concerns paid for many years is now lo'-m to the Government and has to lie collected in increasing degree from the narrow circle of those who have so far escaped public competition. In reality, the letter are being almost equally handicapped for they are providing heavier taxation which formerly more widely and fairly distributed. The subject will he dealt with in greater detail : n another article. Tn the meantime, traders who are fighting for a bare existence beg o f the Government that relief shall lie afforded. An untaxed profit of over £7>o.000 recently disclosed hv the Wellington Electricity Department in a year of stress, provides a text upon which to base their plea.