TIME TO PROTEST

Waikato Times, Volume 127, Issue 21214, 10 September 1940, Page 6

TIME TO PROTEST

LOCAL AUTHORITIES COUNTY AND WAGE INCREASE BURDEN ON RATEPAYERS “Local bodies will have to dig in their toes and protest vigorously against these continual rises in living costs, which mean that the ratepayers will have to pay more,” said the chairman of the Waikato County Council, Mr J. A. Sampson, at the meeting of the council today, when criticism of the imposition of the 5 per cent, increase in wages of union employees was expressed. It was described as a purely sectional benefit. Mr G. M. Watt stated that many ratepayers were already complaining because of the additions to the rates this year. Mr G. H. Walter replied that even further increases would have to be made in the rates if further additional costs were imposed by the Government. “Unless the ratepayers protest unitedly and hard they will never secure relief,” said Mr R. G. Young. Protect Farmers’ Interests “We represent farmers and we should protect their interests,” said Mr Sampson. “If we are forced to put 5 per cent on to salaries which are climbing high, however, we have to take it from the farmers, whose income is probably only a quarter of that of the union employees who are to receive the increase.” Mr Walter said the farmer had not only to meet the increased cosf of living without relief, but in addition to paying the 5 per cent National Security tax he had to pay for the 5 per cent increase in union employees’ wages. His costs were, therefore, rising by 10 or 15 per cent. IVIr Watt suggested that the council would still have to bear in mind the opinion expressed at the last meeting, that a reduction in the staff should be made if possible. Likely Excess Profits Tax Mr Sampson added that the council must prepare itself to protest against an excess profit tax, which seemed likely. He had been informed that reliable opinion was anticipating that the tax would take all income over £SOO a year. If that were so it would be advisable for the council to reduce all high salaries to £SOO. If such a basis was decided upon by the Government for the excess profits tax it would be better for the council to retain the excess rather than pay it to the employee, who would have to pass it on to the Government. Basis of Past Income When it was suggested by Mr Walter that the average income of the past three years or so might be taken as a basis for the proposed excess profits tax, Mr Young said that would hit the farmer, whose income during the eczema year, very low in so many cases, would reduce the average income in recent years. Mr Walter said the farmer was endeavouring to increase production as a war effort. It cost him money but his income might rise later as a result. It would be grossly unfair to take that increase away as an excess profits tax simply because the farmer had assisted the nation’s war effort.