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Progress, Volume XVI, Issue 7, 1 March 1921, Page 149

Heavy Taxation. As the whole world seems to be settling down to a more solid basis of business, the time has arrived in New Zealand when the Government should determinedly face the evil of inflated currency and also attempt to reduce its abnormally high taxation. The war surtax on incomes has remained in operation so long that it has now become a serious burden to the commercial community. This year’s payments are, of course, being made on the basis of last year’s profits. At that time the process of “passing it on” was in full operation, but the poor, patient public has reached the limit of its possibilities in this respect, and extravagance is giving place to more care in buying. Traders who promptly invested last year’s boom profits in goods to be sold—vain thought!—at boom prices find a difficulty in meeting their income tax, especially when the compulsory loan has also to be provided for. It must be quite evident to the Minister of Finance that the millions which flowed so easily into the Treasury through the income tax channel are not to be obtained next year, and he would be wise in fixing a reduced rate for the current year in respect of taxation to be paid next January. The short session gives this opportunity, and we hope that the chance will be taken, as a definite reduction in the income tax will enable a number of hard-hit firms and companies to face the year with a good chance of keeping off the financial rocks during the storms which seem inevitable.

Instalment Payments of Income Tax. We cannot understand why the New Zealand income tax is collected so late after the closing of the year in respect to which it is paid. Things move slowly in connection with affairs Governmental, especially where money is concerned, but the existence of a British precedent for collection of income tax by instalments should be enough to guarantee that there is nothing ruinously revolutionary about the idea. In normal times, the Government habitually has to borrow, on shortdated bills, a large sum every year in anticipation of revenue to be received through the land and income taxation- This taxation is usually paid on

the basis of the year ended March 31st, yet the Treasury does not get the money for nearly a twelvemonth, and has to issue Government I.O.U’s until it arrives. The unsoundness of the practice has been criticised by the present Prime Minister in his capacity as an Oppositionist, but he has made no change himself. Possibly this is due to the upsetting influence of war conditions, but the times are now ripe for an improvement in our taxation methods, and we hope he will consider this matter. It would actually pay the Government to allow a small rebate on the first instalment of income tax if it was paid in the first half of the financial year. Large taxpayers have to make provision for their income tax liability, and if they could hand over a portion of the sum a few months, in advance, and share in the saving made by the avoidance of Treasury bills, it would be an inducement to do so and a saving to the Government. Even if this is no': accepted, the instalment principle of payment should be adopted. What is even more imperative is the necessity for removing the war tax when no war exists. The Nature of War Memorials. Our friend Mr. Hurst Seager returns ro the charge in regard to a national highway as a permanent war memorial to the sacrifices made by our brave men in the Great War. The subject is almost past debate in New Zealand, as the Government has decided upon a non-utilitarian memorial in the vicinity of the Dominion’s capital, but it is fair to Mr. Hurst Seager to say that he put forward the Idea in January, 1919, with a view to securing something more than a roadway. In the circular he sent out at the time to the municipalities, he pointed out that monuments should be erected along the road at frequent intervals, bearing the names of men from the district who had made the great sacrifice. There should be commemorative milesi ones along the roadway, and columns and arches forming the entrance to towns and cities. Throughout the length of the road, he suggested, there should be formed self-contained garden cities on town-planning lines, formed not only as a repatriation scheme but as a means of increasing the country’s productivity. “Whatever amount is

spent on the road,” stated the circular, “will be amply repaid by the facilities afforded for traffic and the enormous saving effected in the cost of haulage- Thus and thus only is it a work of utility.” In calling our attention to the original scheme, Mr. Hurst Seager writes as follows: —

The Editor, “Progress.”

Dear Sir, —In your November issue you refer in an Editorial to the effort being made by motorists to urge the Government to construct the Memorial Highway pleaded for in 1919. I quite agree with you that the road itself cannot be regarded as a memorial: it was not suggested that it should be anything more than a means of linking together the whole of both islands and making possible the expression of national feeling in the memorials along its route. The memorials should not be in any sense utilitarian, but should have as their sole purpose the dedication to honour of those who fell.

Yours faithfully,

January s th,. 1921. S. HURST SEAGER.

We are glad to thus do justice to Mr. Hurst Seager’s original conception of the memorial, but at the same time we are relieved to know that the Government has taken no risk of incurring the suggestion that, under guise of a memorial to brave men’s sacrifices, it provides something which will save the people’s pockets. No matter in what frame of mind the promoters of the hignway memorial tackle the subject, it will be regarded as a purely commercial exploitation of our sacred feelings.

N.Z. Institute of Architects.

We heartily congratulate the Institute of Architects upon its wise decision to drop the charge of one and a half per cent, commission to builders for the plans and detail drawings supplied to them for the purpose of carrying out the contract. It has been a course of wonder to us that the architect should have so long allowed himself to be placed in the false position of taking a commission from the builder while he was acting as the owner’s representative. The only redeeming feature was that it was well known to be a practice of the profession, but it was a bad practice. Now the owner will pay the fee, and the builder will get his plans without the necessity of adding i-| per cent, to his contract price to pay for them. The architect will be in a sounder position in relation to his client, and there can be no unpleasant suggestions that he is under an obligation to the contractor whom he is supposed to carefully watch on the owner’s behalf.

Building Guilds.

Wellington carpenters have decided to go in for building operations under the guild system. It is an interesting experiment, this elimination of the employer, and we will watch it with interest, and no hostility. There is a strong cult which believes

the capitalist to be a parasitic growth on society, and no doubt there are some forms of capitalism which perform no more useful function than the fifth wheel of a coach. But work, to be economical and successful, must be well organised, and there must be discipline. If the carpenter trade-unionists realise this thoroughly and carry it out, they ought to be successful. When the North Island Main Trunk railway was being pushed on in the central section, co-operative labour was largely employed on the earthworks, and the gangs had a souhd custom of balloting regularly as to the constitution of the working party. If it had been “carrying a passenger,” as the phrase went, the ballot usually eliminated him, and the team was reconstituted of willing workers. Building guilds are being tried in England. “The Garden Cities and Town Planning Magazine” recently mentioned the Manchester Guild. “Progress seems to be proceeding with the attempt to do without the employer in the building industry,” it stated, “and the Ministry of Health have come to a working basis with the Manchester Guild, which, though not the first of the Guilds, is by far the most active and enterprising. Before sanctioning contracts with the Guild the Ministry required to be satisfied that the organisation was in a position to carry out its obligations. It was natural that the Ministry should be cautious with an untried and novel contracting body. The basis of the agreement seems to be that the Co-operative Wholesale Society will be associated with the Guild for the purchase of materials, that the same body will insure any local authority entering into a contract with the Guild against loss, and that the Guild is to receive a remuneration of £4O per house, plus 6 per cent, on the prime cost to cover plant and overhead charges. It remains to be seen what contracts will be entered into on this basis. If the Guild can supply the labour—in other words, if the operatives really want to be their own employers—the Guild should have no difficulty in getting work. The experiment is one of profound interest. We hope it will be sufficiently well conducted to receive a fair trial.”

Architectural Propaganda.

In the discussion which took place on Mr. Ford’s motion to enlarge the activities of the Institute, much was said about propaganda. Several members considered tnat the best medium for publicity was to make Progress the official organ of the In-, stitute. We understand that this view commended itself to the meeting, and that in the future greater use will be made of our paper. We desire to assure the Institute that we shall be very pleased to assist them in this way and will gladly publish any current news they may care to send us. We have specially enlarged this issue to include a synopsis of the principal matters dealt with at the annual meetings, and are sending copies to all members with our compliments. We hope the matter contained herein will be of interest to them.