PARLIAMENT

Ashburton Guardian, Volume 50, Issue 263, 20 August 1930, Page 3

PARLIAMENT

THE FINANCE BILL, IN COMMITTEE IN THE HOUSE. (Abridged from Press Association.) WELLINGTON, August 19. In the House of Representatives this afternoon, in Committee on the Finance Bill, urgency was accorded the proceedings. The Prime Minister, replying to references to the allocation of the petrol tax, again mentioned his intention to have the whole question investigated. It was probable that town and country motorists contributed approximately on a 50-50 basis, and it did not follow that town motorists would always be satisfied with the amount of money allocated for city requirements. It might even be necessary to set up separate Highways Boards and funds. Mr R. A. Wright (R., Wellington Suburbs) and Mr H. Holland (R., Christchurch North) drew attention to the large proportion of the tax paid bv citv motorists. "Mr H. E. Holland (Leader of the Labour Partv) pointed out that the interests of both sections of the community were collective. The cities must depend on the country for thenfood supplies, and the better country roads could be made the better it would be made for the whole Dominion He advocated the appointment of a Recess Committee to consider the question of the Highways Board. It the Board was to continue m existence it was important that small boroughs and town boards should be included in the scheme so that they should be able to get better treatment. _, , /T _ _ The Rt. Hon, J. G. Coates (Leader of the Opposition) declared that small boroughs and town, boards already had adequate provision made tor theni under the Highways Act. The Highways Act, whatever fault? it might have, had brought thousands of miles of good roads to this country and had provided better access from the city to the country than had ever been enjoyed previously. Mr Coates suggested that the rate of duty charged on foreign sound films would result in New" Zealand being deprived of an opportunity to witness a better class of production. , Mr Forbes said the amount of duty fixed was comparatively light. He was amazed that anyone should raise an objection to the tax in view of the thousands of pounds that had been going from this Dominion annually to the large film corporations. Air K. S. Williams (R., Bay o Plenty) said the Highways Board had been, criticised for constructing good roads parallel with the railways Tins was not quite fair, because in order to connect the various centres it had been impossible in many instances to the configuration of the country to get very far away from the railwav lines. „ ~, , > Mr D. McDougall (U., Mataura urged the substitution of additional L S ome-tax to yield £2 000,000 for the tax on petrol. Income-tax would then be restored to something like the 19*5122 total. If such a course were adopted the Prime Minister should have no difficult in getting the Bill through in time to leave for the Imperial ConThe short title of the Bill was passed 3 When the clause dealing with the increased totalisator tax was under consideration Mr Downie Stewart said he thought the .tax on dividends would cause less discouragement to the pub lie than the tax on investments as the Armstrong (Labour, Christchurch 'East) submitted that bookmakers would gam as a result of the increase. Referring to the fall in the totalisator investments at the Grand National Meeting Mr Armstrong said ' many people had been under the impression that the new taxation was alreadv in operation. The "clause was passed. Amusement Tax. When dealing with the amusement ■Htc Mr Coates urged that the tax should be removed from Is 6d tickets He pointed out there were very few Is tickets nowadays and many of the poorer people would have to pay 2d tax on Is 6d tickets if it were retained. H? contended further that the Picture theatre industry was in a shaky position at the present time. Mr Forbes said it seemed to have been indicated it was the wish of the House that there should be no, tax on Is 6d tickets. He was prepared to drop this, but it would be necessary to make up for approximately £4O,UUU loss in revenue when the Land and Income Tax Bill came down. He mentioned that another 1 per cent, on income tax would provide the necessarj amount. ~ ~, The clause was passed with an amendment relieving Is 6d tickets from taxation. . When the clause amending certain provisions of the Highways Act was reached, Mr H. G. R. Mason (Labour, Auckland Suburbs) moved an amendment to the effect that the alterations should apply for only one year. This would enable the position to be reconsidered next year. The Prime Minister intimated that a committee would be set up early next session to consider the apportionment of revenue from the petrol tax. It must remain undisturbed in the meantime, but he would agree to the restoration of the 8 per cent, allocation to cities after March 31 next. . The clause was passed, on a division, by 45 votes to 27. The Prime Minister agreed to arrange for an amendment to be inserted when the Bill before the Legislative Council, providing that the operation of the section relating to the Highways Act should be limited till August 31, 1931. . , , The remaining clauses, were passed without amendment, and the Bill was read the third time and passed. The House' rose at 3.35 a.m. tin 2.3 U p.m. to-day. , Stamp Duties. Mr Coates asked the Prime Minister • to reconsider the clause imposing a conveyance duty on transfers of shares bought in companies in other countries. He had referred to the point during his second reading speech, and he asked the Prime Minister how much revenue he thought it would produce. Mr Forbes: About £ISOO. Mr Coates said the clause offered possibilities of evasion on the one hand and double taxation on the other. The Prime Minister said he thought the principle involved was quite correct.

The clause was passed. Reform members protested against the increased "duty on mortgages and on discharges and variations of mortgages from 2s 6d to ss. It was -vunted out that numerous increases of the type would become costly, especially to workers and small farmers. Mr Forbes said the charge of 5s

would only cover Departmental costs in the matter.

Mr H. E. Holland said the Labour Party also did not like these irritating little items. He suggested that the Prime Minister should drop this and other similar clauses, ascertain the loss of revenue it would involve and recompense for that loss by a steeply-graded tax on incomes over £IOOO a year, and the restoration of the super-tax on estates valued over £20,000. Mr D. Jones (R,, Mid-Canterbury) said the Prime Minister might have considered covering Departmental costs by reorganisation instead of increasing charges to the public. Mr Forbes said his budgeting had been fairly close. If he had a few thousands up his sleeve he would be able to meet members' objections, but that was, not the case. . The clause was retained on a division, for which Reform members called, by 47 votes to 26. Note Tax. Mr J. T. Hogan (Ind., Rangitikei) urged the Prime Minister to consider carefully before imposing an increased rate of duty on bank notes. He pointed out that such a step might have a detrimental effect in decreasing circulation. The Hon. W. Downie Stewart (R., Dunedin West) suggested that the increased duty would increase the cost of borrowing to the public. It would add to the costs of producers who sought accommodation by the bank. He did not think the Government, after it had provided a gold reserve, would gain, much bj taking oyer the note Mr Forbes said he was satisfied the convenience afforded the banks by the note issue was such that the increase was a fair one. He did not think there was any necessity for anyone to "shed tears over the poor banks." Mr D. Jones said nothing could be gained by dividing the House on this clause. He asked the Prime Minister if he would accept an amendment to limit the operation of the clause till no longer than October 1, 1931. Mr Forbes said he could not give preferential treatment to.one form of taxation, but he assured members the whole position .would be reviewed next year with a view to ascertaining whether any forms could be remitted. , The clause Avas then passed.