CONDITIONS IN AUSTRALIA

Nelson Evening Mail, Volume LXIV, 10 January 1931, Page 10

CONDITIONS IN AUSTRALIA

OVERBURDENING TAXATION “DEFEAT OF ITS OWN OBJECTIVE” LOW PRICES AFTER LONG DROUGHT BENEFIT OF PATTERSON SCHEME “It is very hard to express in words just how bad tilings are in Australia. I don’t think the Australians themselves quite realise how bad they are.” Glad to be back in New Plymouth for a short stay, Mr A. Ridd, Melbourne, managing director of the Ridd Company (Australia) Proprietary, Ltd., had something to say to a “Daily News” reporter concerning conditions in the Commonwealth. He finds things somewhat better in New Zealand than on Hie other side of the Tasman, and considers the Dominion to be approximately in the same position Australia was IS months ago. “But I wish,” lie said, “that I could say something to prevent New Zealand following in Australia's footsteps. The indebtedness per head of population is about the same as that in Australia, and unless the country stops borrowing and begins to pay back in a couple of years, when Australia is beginning to recover the Dominion will be in a similar position to that of the Commonwealth to-day.” Seasonally he had never seen Australia looking better than at present. One of the things that made it so much worse for the Commonwealth was that low prices for produce had come at the end of five or six years of drought. On top of all this the Federal and State Governments were piling on tax after tax. “Indeed,” observed Mr Ridd, taxation has gone so far that I don’t quite know where our company stands'in the matter.

“Besides the sales tax and the unemployment tax there is the Federal income tax and super taxes and the State income tax and super taxes. When I left Melbourne a short time ago we had not received our assessment for the 1929-39 year. Yet we have had to divide our profits for that year and pay dividends and interest. The assessment for 1930-31 will arrive in another 18 months. “NEVER: CATCH UP” “High taxation is defeating its own object—the collection of revenue. So high is it now that it simply means there is no money to invest in business, with the result that the assessments of the Governments are never realised. Then, finding they will not receive the revenue anticipated they attempt unsuccessfully to remedy the position by putting on another super-tax. So it goes on, like a man chasing the moon. They never catch up.” Labour controlled the Federal, Victorian, South Australian and New South Wales Governments, said Mr Ridd. The trouble was accentuated by the fact that these parties in power would not cut down the cost of government. The only department that had' been reduced avas that of defence, and that, lie considered, was the last item pn which a cut should be made. The unemployed looked upon the Labour governments as tlicir governments and were always pressing for concessions.

Was there much actual distress among the-people? Mr Kidd was asked. Proportionally there was not so much real distress, he said. The trouble was that the people generally had been living to such a high standard that they found it difficult to come down. There were many charitable organisations, and the only persons who actually went without were those who were too proud to ask for charity. In order to provide for u'nemployment and distress the Victorian Government had in 1929 levied a tax on incomes. In this way £BOO,OOO was collected, but it was all spent in three months. On up to £6 a week the employers were responsible for the Collectiqn of a lqfy- of a penny'in £l. The tax was - graded, and on incomes above £0 a week it was levied in the form of income tax. “My own levy for unemployment amounts to 3ld in £l/’ said Mr Kidd.

ASSESSED ON OTHER DAYS

Owing to the long delay before income tax assessments were distributed, an anomalous position arose in connection with the pnemployment levy collected by tliis mean's. There were instances in which men now unemployed were called upon to pay the levy on incomes they had been receiving 18 months previously. Now they had not a penny with which to pay. The days of their prosperity had gone and they themselves were looking for work. A suggestion that there might be a coalition Government to carry out the terms of Sir Otto Niemeyer’s report was made by Mr Kidd when asked what efforts were being made towards the financial rehabilitation of the Commonwealth. The extreme elements were very much against Sir Otto’s proposals, he said, but he thought the matter would be settled on Mr Scullin’s return from London. It seemed probable that Messrs Scullin, Fenton and Lyons—the last-named the strongest man in the Cabinet —would break 1 away from the extreme elements in the Government. Mr Eidd could not conceive how they could continue to associate with Mr Anstey and others who advocated repudiation and release of credits. Before Mr Scullin sailed for the Imperial Conference he stated definitely there would be no repudiation and no inflation. Most of the unemployed came from the secondary industries, continued Mr Eidd. These had no outlet for their products on account of the high cost of production. The boot and woollen manufacturies were all full of unsaleable high-priced goods. AKBITEATION AND FAEMING Nothing was paying in farming lines. The Arbitration Court was still sitting on the question of reducing the basic wages by 10 per cent. Mr Eidd recalled that one of the union lawyers had asked the court if a 10 per cent, cut would put the primary industries on a payable footing. Chief Judge Detheridge liad replied that if there were no wages at all the industry would still not be on a payable basis at the present time. It was a surprise to a great many people that the unions had not accepted the 10 per cent, cut right away, said Mr Eidd, but instead they had kept the court arguing the matter for five months. Owing to the operation of the Patter-

son scheme Australian butter producers were at present in a more 1 fayoufable position than New Zealand butter men, said Mr Eidd. The scheme, had helped the dairymen very much. Nearly every secondary product iii Australia was subsidised or protected in some' way or other, and this was the only means by which the dairyman could;' compensate himself through the sale of his product. About half Australia’s butter was exported. Under the scheme a levy of 3d was made on . every pound* exported, this averaging about lfd a pound over the total production. The butter committee met periodically and arranged to recoup the farmers'.by fixing the price of butter sold for home consumption. At present the 1 price of butter in Australia Was about sd. more than- the London rate. Tlie proceeds from' this extra price and the levy were, pooled and' theri distributed ’ amongst -all ; flie' butter men. So far, despite tlie addition to the • retail prices; the local, demand for butter seemed to have kept up very well and the scheme operated successfully. I;''-.'''','