TIMBER INDUSTRY

Hokitika Guardian, 25 February 1933, Page 5

TIMBER INDUSTRY

TAX EXEMPTION

DEPUTATION TO MINISTER.

(Per Press Association — Copyright.)

WELLINGTON, February 22

On Tuesday evening Mr J. O’Brien, M.P. (Westland) led a deputation of Members of Parliament to the Hon. J. G. Coates (Minister of Finance), requesting that all sawn timber be •exempted from the sales tax. The following members were present :—Messrs Stuart, de la Perelle, Healv, Clinkard, McSkimming, Rushworth, Wilkinson, Holyonke, McDougall Langstone and Atmore. The absence of Messrs H. E. Holland (Leader of the Opposition), J nil and Colonel Hargest was apologised for. Mr O’Brien, in introducing the deputation, said it was composed of members who had sawmilling interests in their electorate, and who knew that if the sales tax were passed without timber being placed on the exempted list, tlie industry would suffer. Previously/ i n order to help the industry and also to find work for the unemployed, the Government had seen fit to subsidise building .and the export of timber. Now that the industry had a chance to get on its feet, the .sales tax would undo all that had been done. As the Bill was now drawn, a sawmiller would be chargedi sales tax on the timber lie cut and put into strip or on the skids at the mill.

Most sawmillers kept on cutting timber as long as their money lasted, principally to keep their men employed. Millers who had white pine and rimu bush were cutting the white pine for export or sale, and stacking the rimu for seasoning or a possible sale. They were forced to do that or to go through their bush twice, which was generally found to be impossible. If the timber were stored or held for seasoning or for sale, it was subject to the sales tax. That would mean that no millers would continue to cut timber unless there were an immediate sale for it, and considerable unemployment would be the result. Mr O’Brien said that the strongest argument he could use was that if the effect of the sales tax on the timber industry reduced the sales of timber by four per cent it would nullify any tax that would be collected from the sales of timber. Mr Coates knew that the timber industry paid a considerable amount each year by way of royalty and railway freight. A four per cent reduction of sales would mean that the Treasury would lose as much as it gained from the sales tax. Mr de la Perello and Mr Holyoake supported what Mr O’Brien had stated, and emphasised the necessity of sawn and dressed timber being icxempted from the sales tux. Mr Coates, in reply, stated that he would take into consideration what the deputation had said, but he held that revenue had to be collected. However, it was intended to give power to the minister in charge, so that if the timber industry were being adversely affected by the sales tax, timber could be excluded from the tax.

On behalf of the deputation, Mr O’Brien thanked the Minister for the courteous hearing received.