REWARD FOR LABOUR

Otago Daily Times, Issue 24424, 9 October 1940, Page 6

REWARD FOR LABOUR

CASE FOR THE FARMER WAIKATO PROBLEM CITED EFFECT OF BAD SEASONS (From Our Parliamentary Reporteb) WELLINGTON, Oct. 8. ' “ Everyone will agree that the principle of the Bill is right, and that no profit should be made out of war. but 1 am concerned that no one shall be deprived of his reward for extra labour,” said Mr W. S. Goosman (Opposition, Waikato), who presented the point of view of the farmer, particularly jn the Waikato district, during the debate on the Excess Profits Tax Bill in the House to-night, Mr Goosman said that, except in‘.the case of wool, where there had been a slight rise, the prices of primary produce were now for the most part the same as the pre-war values. The proposed tax might, therefore, become a tax on industry, good luck, or a good season. The Waikato farmers had had many problems and setbacks in the three years on which the standard income was to be based. The effects of the facial eczema outbreak had been spread over almost the entire period, and the dairy farmers had _also. had losses. After quoting the case- of a farmer who had weathered the .bad seasons and had now Increased his herd and had reasonable expectations of a substantially improved production this year. Mr Goosman asked whether it was fair for such a man to, be classed as making excess profit. He said this was an anomaly that, in the Waikato might be found to be the rule. “ The Appeals Committee will have more than a full-time job,” Mr Goosman said. “ Every trade unionist gets paid for his extra labour, and I am speaking for the primary producer, who deserves to be paid, too.” . The Minister of Finance (Mr W. Nash): He will be.

Mr Goosman: I am glad to have the Ministers assurance, and I am sure the farmer will be glad, too. - The possibility of the tax militating against increased production was mentioned by Mr Goosman. He said that it would be much better for the. Government to risk somebody getting a little extra profit rather than to chance a decline in production, the maintenance of which was absolutely essential.

MANY DIFFICULTIES REMOVAL OF OBJECTIONS (From Our Parliamentary Reporter) WELLINGTON, Oct.. 8, An admission that there were many difficulties in removing some cf the objections raised by the Leader of the Opposition was made by the Attorneygeneral, Mr H. G. R. Mason, when speaking on the second reading- of the Excess Profits Tax Bill in the House to-night. Mr Mason said the Government would be grateful for any suggestions for the better application of the main principles of the Bill in which ; a. great deal of trouble had been taken to deal with the smallest anomalies. The Leader of the Opposition, Mr Mason said, had spoken of interest to be taken into consideration when computing the standard income. “ Personally, I see no difficulty in that.” he said. “In business one thinks of a rate of interest different from what one gets from Government securities. because there are risks involved in business. It seems to me that the rate has to be fixed for the security of the business man. and, further, everyone will agree that the rate is a reasonable one.” The taxation that •, would be levied under the Bill depended on the difference between the standard income and the income for the year in question, Mr Mason said. The point was the profit in the year of war, net whether it was made by a rich man or a poor man.

WAR-TIME PROFITS CHALLENGE TO OPPOSITION (From Our Parliamentary Reporter:) WELLINGTON, Oct. 8. . A challenge to any member of the Opposition to oppose the Excess Profits Tax Bill was issued by Mr C. H. Chapman (Govt., Wellington North), speaking in the second reading debate on the measure in the House this evening. Minor criticism might be made of the Bill, he said, but real opposition was absent. The people of New Zealand were opposed to anybody making excessive profits ip war-time. Those who enlisted could not make profits. Mr Chapman said their contribution to the war was suffering and privation. Those who remained behind could make profits, but they had duties to perform. It was true that profits were an incentive to industry, but surely at this time there was an alternative incentive —patriotism.