ALTERATIONS OF TAXATION.

New Zealand Times, Volume XXXIII, Issue 5433, 26 August 1878, Page 2

ALTERATIONS OF TAXATION.

TO THE EDITOR OF THE *>E.V ZEALAND TIMES. SIR, —The alteration in the incidence of taxation, as proposed by the Colonial 'Treasurer in hia Financial Statement, has in some degree given satisfaction to the gen ral public, inasmuch as ho proposes to make laud contribute towards the revenue of the country, and as this particular item of wealth has received most benefit from the large expenditure in public works, namely, the unearned increment, it is only just and equitable that laud should contribute its fair proportion towards the • interest accruing on the borrowed capital expended on railways, public works, and immigration. In this, so far, the Ministry deserves the gratitude of the public, and if that property were included in their proposals, it would meet with even greater support. But, sir, in my opinion, take that out of the Financial Statement, and the Budget is one of gross errors and great mistakes. The cry of the

Ministry is that it is a Liberal Government—studying and conserving the interest and welfare of the working class, and it no doubt has the support of the House; but it is painfully evident by the expressions of the sup; porters as well as of the Opposition of the Government that the Ministry can carry any measure that they like to make a Government question of, whether approved by the majority of the House or not. This is a very unfortunate condition and position of the House, as this strength is liable to cause legislation to be carried out detrimental to the

general welfare and benefit of the country at large. A principle has been introduced which if the Government make a Ministerial question of will be most likely carried, not by the wishes of the House nor the desire of the country, but from the fact of the want of a properly organised Opposition and leader, and the want of independent action of individual members. This question I allude to is the introduction of the principle of taxing local industries and manufactures. This question is a great and important one, and the House will do well to consider and pause before adopting it. It seriously affects the future development of the resources of the country, the future employment of the rising generation, and drives out of the colony that capital and labor which can be profitably employed here. The thin end of the wedge of this policy which the Colonial Treasurer wishes to insert is the tax upon beer made in the colony. No doubt, as was said to the deputation of brewers, taxes must be raised; but the question that occurs to my mind is whether thus changing the incidence of taxation, by establishing an inland revenue department, to the annoyance and injury of those engaged in trade and manufacture, sacrificing industry in this young country oa the altar of experimental legislation, is a wise and prudent policy, and I think if persisted in, it will not raise this country in the scale of national industry and independence. The announced policy of the Colonial Treasurer, in answer to a question asked at the interview of the hre vers’ delegates, was “ that so soon as other industries were finally established they would be also taxed and by this principle thus announced, if imposed and forced on the country by the threat that it is a Government question and policy, a great wrong and ia • justice will be done, not only to that which at present it affects, but to the futme prospect and further development of the manufacturing interests ; for it will be said by persons about, entering into such pursuits that the previous Parliaments fostered and encouraged the brewing interest, and that so soon as you are entrapped to invest your capital you will be taxed and your profits wrested from you by a paternal Government, as in this case. I maintain that the wealth of a country is greatly enhanced by its internal industries being encouraged, thus giving employment to the population, enabling them to be able to pay the duties imposed on articles they consume, and which they are not able to produce—thus creating an interchange of cominoities between nations. If you curtail your industries, which by direct taxation within you do, the result is, and it naturally follows, that the working man becomes unemployed and is unable to purchase those necessaries of life even if they are admitted free. The kindness of the Colonial Treasurer in taking one halfpenny per lb duty off sugar, which would cost nothing to collect, to place it on the article of colonial beer, which will cost a large amount to collect, both being consumed by the laboring classes, is unwise ; and, moreover, it has been shown that one farthing per lb. on s U <rav is more than equal to the amount likely to be derived from the imposition of this beer tax. The Bill is now printed, and bristles with fines, forfeitures, seizures, conditions, and restrictions that not only will the duty of three halfpence per gallon have to be paid, but to comply with the Act will at least entail such extra expense in the manufacture that it will add another three halfpence per gallon, raising the cost of production by threepence per gallon. It has been said that this will fall on the consumer, but from the discussion that took place on the subject with the Colonial Treasurer, I am inclined to think that most of the tax, if not all, will fall on the hotelkeeper and brewer ; and say that the brewer should only lose half, then with extra cost it will be a direct class tax of about £SOO to £2OOO per annum on the trade of brewing. I could write much more on this beer tax Bill but that I have other points that I am desirous to bring before the public in reference to the tariff alterations proposed, and as X have now written at some length, I will conclude, and my excuse for trespassing so much on your apace is the importance of the subject, the effect of which upon the whole community lies much deeper than appears upon the surface.—l am, &0., Makdfacidrek.