NEW NATIONAL PARTY.

Auckland Star, Volume XXI, Issue 172, 23 July 1890, Page 2

NEW NATIONAL PARTY.

JUBILEE LAND REFORM PARTY.

SPEECH 'BY MR J. H. UPTON. EXPECTED EFFECTS OF LAND TAX.

A meeting was held in the Academy of Music last evening under the auspices of the Anti-Poverty Society and Knights of Labour to consider the advisability of forming a new National Party in view of the coming elections. There was a good attendance.

His Worship the Mayor, Mr J. H. Upton, occupied the chair. He said in opening the meeting that he had acceded with great pleasure to the request made to him to take the chair that evening. He might not agree with the resolutions to be put before the meeting, in fact he did not know what those resolutions were to be. But it was certainly a good thing to see the people take action to obtain better government. A national party was very necessary in New Zealand. Most associations of this kind were composed of working men, and he was pleased to see that working men nowadays had advanced from the oldest Union principles, which had been formed by skilled workmen to protect themselves at the expense of other workmen. But nowadays workmen formed Unions in a moro helpful spirit. But if they formed a national party their objects must be practical—they must ask for something that they were likely to obtain. For instance, it would be very little use in asking for such a reform a 9 land nationalisation. The speaker said he believed in the theory of land nationalisation, but he thought it , was impossible or too difficult oi practical realisation. Persons had bought land from tho Government, and if land nationalisation was now to be introduced, it would cost a large Bum to buy these persons out-—a larger sum than the colony could afford. At the same time, he must say he believed if this colony had started with a system of land nationalisation it would have been a good thing for the people. Now, taxation was the beginning and ending of all political discussions. It was the one thing they could not forget. Taxation was necessary, but it was generally unpleasant. Much objection was taken to the property tax, but the Premier said he could not do without it. The speaker could not agroe with that statement. Once a tax wasintroduced.it was always found very hard to get it off again. An apt instance of this fact was the primago duty. It was a remarkable fact that the property tax was objected to by nearly everybody—by- those who did not pay it, as well as by those who did. Yot there was very little objection to the Customs duties, which were paid by all. The property tax produced about £350,000, while the Customs duties amounted to £1,500,000, and if these latter were reduced it would #ive greater relief than anything else. They might be reduced by economy. When an individual began to get behind in his accounts be proceeded to live more carfully and to economise; and Government should do the same. But as soon as some convenience is to be cut off tho public rise up and say, "No, that is a necessity." Hence it was almost impossible for a Government to retrench. How was it possible to reduce expenditure? Send away the Civil servants not needed, and reduce the salaries of those who have too much. The Government sends some away, but givos a retiring allowance, which is practically a pension. He would suggest a reform of the system of voting so that minorities might be represented, and so that a Government really ' trying to retrench would always have a good measure of support, and even if it were turned out of office its members should be again elected to enter their protest against the bad system. The speaker would like to see tho proposed National Party try to obtain some such system of voting as that proposed by Mr' Hare. He thought therefore that they might set' .themselves to obtain two reforms : 1, they should demand economy ; 2, they should try to get a better system of voting. At present the country was in financial difficulties, because income did not equal expenditure. Year by year the country was getting more behindhand. The people had been living in a fool's - paradise on borrowed money. They. would now have to pay for their folly. This would have been the happiest country on the face of the earth but for borrowing; and notwithstanding the debt it would yet be a happy country when tbe people settled down to a steadier life. -But since we have incurred the debt, We must learn to bear if. His Worship read a letter of apology from Mr George Aldridge for hia absence from the meeting. Mr Farnall said he regretted very much the absence of Mr Gerald Peacocke through illness. Tho resolution he had to propose was the one plank and a very important one, "That the time bas arrived when a new National Party should be formed, having for its objects the formation of a political platform, to be accepted or rejected by all candidates for election to the new Parliament, the proposed platform to be as follows.*—The immediate repeal of the property tax, and the substitution in lieu thereof of a tax of one per cent, upon the value of all land, exclusive of improvements." In speaking to the motion it was necessary to go back some time. He had come to this colony 31 years ago because he was dissatisfied with the social distinctions he saw at Home. Even as a child he could not see why? one claF3 should live in poverty while others lived in luxury. In coming out here he thought he was coming to a country where the people would have profited by the lessons of the past, and class dis.inctions would be swept away. But when he came here he found the old Conservative institutions imported from the Old Country, and he. saw growing up the same old institutions. He had then written, and in the House of Representatives had spoken to show the people that an aristocracy was arising. He merely mentioned this to show that then, when he was well ofij he expressed the same views that he now and for some years past had expressed.. Then he was looked on as a Communist, and was laughed at. The only man .to sympathise with him was Mr (now Sir) Edward Stafford, the then head of the Government. He urged the speaker to continue in those views, but said he was twenty years ahead of the time. There could be no doubt, oontinued Mr Farnall, that this colony had got into a very bad position, because of an evil that started very long ago in this very city of Auckland. Now that evil might in this Jubilee year be killed. The Chairman had rightly said that it would not do to pay off all the owners of land. That would be too costly. But another and a better way was possible. That wa3 to pat a tax of one per cent, on the unimproved value of all lands, without exception. That would not to any appreciable extent affect any but the large landholders. These latter would then have to pay a good tax or give up their unimproved land to be profitably, worked by other people. Now, this so-called land tax would be nothing more than a email rent paid to the State by the landholder for the right to make use of the natural opportunities in tbe land.. Mr Farnall read an extract to show that such a tax or rent did not really come out of the owner's pocket, except in the above way. He would next draw their attention to one of the Premier's tricke. He was recently interviewed by a deputation from the Maritime Council, and he agreed to everything they asked for. Then Sir Harry was interviewed by a reporter anxious to know

what had been done. Sir Harry Baid he believed the time was come to have done wibh fireworks politics, and bhat the Houbo would do well to devote its attention to the measures proposed by the Maritime Council. The Premier took care to nave this news flashed overthecolonyandallbhoselconnected with the Maritime" Council thought Sir Harry would do something for them. But nothing would be done this session, and on the promise that it would be done next these people would all no doubb do their best to return the Premier and his party. Mr Farnall then read an extract from his pamphlet, " The Depression in New Zealand : its Cause and its Only Cure," showing that Sir George Grey had introduced a land-tax ; but that when the wealthy.landowners saw the real value of this tax they at once set themselves to gid rid of it. And they succeeded in their object, It was possible then, at this very time, to create a new era of progress and prosperity. Mr A. Kelly rose to second the resolution. He said that the property tax had been rendered necessary by the Public Works expenditure, and that expenditure had all been used to give iv dated values to land, raising it to a price impossible to be paid by bhe farmer desiring to work profitably. Now, he proposed to put on such a tax thab it would be unprofitable for the speculator to hold land for such inflated prices. He could see no better way to force the breaking up of this speculating than the imposition of a land tax. Their opponents raised the bogey of the small settler, saying the poor man could not afford to be taxed, but in South Australia such a tax had been introduced by the farmers themselves as a protection against speculation ; and they were still quit, satisfied wibh it. Moreover, people should not lorgeb that, in their legislation now they wore also legislating for their descendants. Mr Power spoke to the motion, showing the hard life a settler must live in going on the land, because of the heavy taxation. The speaker proceeded bo show that the imposition of a land tax on all unimproved values would relievo the Bmall farmer by the amount of properby tax and Customs duties that c.uld be taken off.

A gontleman in the audience asked if the tax of 1 per eont. would suffice to pay interest on the national debt.

Mr Farnall explained that 1 por cent, would produce about £1,000,000 annually. Then the £350,000 property tax could be abolished, and if the Customs duties were taken off all articles not capable of production in this colony, another £350,000 worth of relief would be given, leaving still £300,000 for other ways.

Mr J. Gordon made some remarks from the body of tho hall.

Mr F. Cherry said he agreed with a good deal of what Mr Kelly had said. But he could not agree with all tho propo. cr of the resolution had said. He thought a National party should try to obtain' £3C0,C00 reduction in taxation. He wanted to see burdens reduced, not fads like this run to death.' Mr Cherry was subjected to some interruption. He concluded by saying that this proposed'scheme would'have no practical effect.

Mr Bridgewater pointed out that £25,000 was to be appropriated this year for pensions and such like by. a professedly retrenching Government. The expenditure must be stopped. The speaker concluded by comparing the expenditure in New Zealand with that of Switzerland.

Mr Duncan also spoke regretting that the platform of the party was not broad enough.

Messrs Garlick and Burtt spoke in the same strain.

Mr J. Neylon made Rome remark., but the meeting soon got tired of him, and he had to take a seat.

Mr Farnall then replied to the various spe_kers. He said that the property tax ought to be repealed and tho Customs duties ought to be reduced. The greater part of tliis sum must be raised in some way,and a land tax would do this with great advantage, and with little eil'ect on anybody but the speculating land owners. The motion was then put and carried. Mr Cowley then moved the second resolution aB follows:—"That a Committee consisting of Messrs A. Kelly, Warburton, C. S. Wright, Dr. Beale, H. W. Dixon, G. Peacocke, J. H. Lymburn, A. Withy, A. Cowley, J. Parr, F. S. Piatt, H. W. Farnall, with power to add to theirsnumber, be appointed to carry out the object of tho party, and that the distinctive name of the National Party be ' The Jubilee Land Reform Party."' He spoke at some length, chiefly to the previous resolution. Mr A. Withy seconded the resolution. He showed the groat relief that would result in England from the introduction of a land tax.

The resolution was carried unanimously, and a hearty vote of thanks was carried te His Worship tbe Mayor, on the motion of Mr Power, by acclamation.