“Missed Opportunities”

Sun (Auckland), Volume II, Issue 428, 9 August 1928, Page 1

“Missed Opportunities”

BUSINESS MEN ON BUDGET

Gesture of Help Wanted

A MISSED opportunity to reduce income tax is evident in the Budget, according to business men of the city. “It is deplorable that the Government should not have made a gesture of help at this time,” said one.

Dr. H. Belshaw, Professor of Economics, said that he believed Mr. Downie Stewart was sound in refusing to reduce taxation, especially in view of the likelihood of better times next year, provided the surplus was used for the purpose of reducing dead-weight debts like the National War Debt. “I am sorry that no provision appears to have been made for the setting aside of sums for the long-period planning of public works, so as to meet changes in the demand for labour, and thereby mitigating unemployment,” he said. “I say this in view of the fact that the return of prosperity is imminent.” “MOST DEPLORABLE” “It is most deplorable that Mr. Downie Stewart, who is a business man held in high regard by the business men of the country, should not have realised the enormous advantage which would have accrued to the whole country by the Government’s making

a gesture to help by even a small reduction in income tax,” said Mr. A. G. Lunn, past-president of the Chamber of Commerce. Every other circumstance in the country, he said, the improvement in production of primary produce, the reduction of imports, and the decrease in the bank-rate—tended to improve conditions, and the Government might have seized the opportunity of giving a much-needed fillip to trade conditions by doing what should have been done at least two years ago. Surely those in control of finance must realise that the first essential was what the country could afford.

“Individuals are expected to conform to the old ideas of thrift,” continued Mr. Lunn, “and munici-

palities and Governments must realise that the time is now at hand for them to consider seriously that the coat must be cut according to the cloth.”

Mr. Stewart had mentioned the fact that, unless opposite tendencies appeared, an increased burden would have to bo borne in the future, because of the loss of interest on the railways. Surely this should have been considered before the department had adopted schemes for further lines which would be an additional burden on the country! “Well, Mr. Downie Stewart has to get the money from somewhere,” said Mr. G. Finn, president of the Manufacturers’ Association, “and he has to look about him to see ’where he can get it” Mr. M, Stewart, vice-president of the Chamber of Commerce, speaking in the absence of the president, said that while praise must be given the Minister for nursing the finances of the country and keeping them in such a state that the credit of New Zealand remained high in Britain, yet the taxation proposals disclosed in the Budget were disappointing'. No relief was to be given. It was refreshing - , however, to find the Minister admitting the rate of company taxation was high and pro mising a reduction. Another welcome admission was that the graduated land tax operated harshly on firms which had properties in many urban centres It was expected • lat there would be a general reduction in income tax rates under which industry was severely handicapped It had also been hoped that relief would have been given to income from farm securities.