RUNNING DRY

Rotorua Morning Post, Volume 1, Issue 90, 7 December 1931, Page 6

RUNNING DRY

(Press. Assn.

taxation sources GOVERNMENT ADMiNISTRATIVE COSTS MUST BE REDUCED BUSINESS MEN'S CAMPAIGN

, — By Telegraph — Copyright).

WELLINGTON, Sunday. ,,Concerted action by all the 45 chambers affiliated with the Associated Chambers of Commerce of New Zealand is being taken in a _§hort and determined campaign for greater national econpmy* "A deputation is to wait on the Government shortly to urge the campaign," said Mr. C. N. Bowden, president of the Associated Chambers of Commerce, on Saturday. "Tbe association is prepared to use a flying squadron of members to visit outlying chambers to ensure that the move has tbe fullest co-operation,"

he continued, . "and chambers are being urged to appoint committees immediately to consider the matter'and report to the executive." Mr. Bowden said that conditions had reaehed such a stage that it had been decided tbat steps would have to be taken to secure greater national economy. The proposed campaign should have instructions to

prepare urgently, tor adoption by the Government, an adequate plan for the adjustment of national and local requirements to the ability ofi the country, to provide the funds. The efforts of the Government to effect economy had produced very little result. The reduction in national expenditure in the su'pplementary budget had been only £200,000 or less than 1 per cent. Startling Taxation Increase Mr. Bowden went on to say that national and local taxation had risen from a total of £5 14s lOd per head in 1904 to £17 12s 2d per head in 1930. The national debt had increased by £88,000,000 from. 1919 to 1929 and local body loans by £40,000,000 in the same period. More than £26,000,000 of direct and indirect taxation would be extracted from tbe community next year, although national production had dropped by about £31,000,000 since 1929-30. if the costs that the business community have saved are only to be taken away again by increased taxation to sustain an irreducible administrative system that straddles this country like a c^Iossus, then trade and industry must breathe their last," said Mr. Bowden. "These cumulative administration costs are now clinging to our backs with the tenacity with which the Old Man of the Sea clung to the back of Sinbad. The wells of taxable income are running dry and the weight of the present taxation cannot be eased until the administrative costs of the Government are reduced."