NEW SOUTH WALES POLITICS

Auckland Star, Volume XLIII, Issue 17, 19 January 1912, Page 2

NEW SOUTH WALES POLITICS

TALK WITH HON. JOHN HUGHES. SOMETHING ABOUT STATE RAILWAYS: ; Among the passengers by the Mantua this morning was the Hon. John Hughes, Vice-President of the New South Wales Legislative Council. Mr. Hughes has come across on a short holiday visit, toeing due back to take bis place in the ; Council when the State Parliament reassembles on February 21. Discussing New South Welsh politics with a pressman this morning, our visitor remarked that very little had been done during the past session, the only financial measure passed having been the Income Tax Bill. The position with regard to that Act was, however, rather interesting, as it was only allowed to pass the Upper House on the Government's assurance that an amended measure would be introduced when the House met in Febru-, ary, providing for the total abolition from the statute of the specific tax of 1/2 in the £ on companies. The parsing of this Income Tax Bill introduced in" -the State graduated taxation on incomes, beginning at Od, with a £3OO exemption and an additional f.'iO exemption for all children under 16 years, while provision is made for a supercharge of 2d on income derived from real-estate. . -That was right enough." remarked Mr Hufhes, "but the introduction of a tax on "companies andl on Government stock was a different matter. In fact, although it was really aimed at the wealthy man. this part of the Act lilts the small investor much more heavily, for in a great many of our biggest companies the small Investor holds the bulk of the stock, so that the tax would fall on the shoulders net intended for it. In the same wav with taxation on Government stock. You put a special tax like this on Government stock, and what is the result' The investor at once says, 'Very well, you muat give me a bigger rate of interest if you want (he money,' and the chicken comes home to reost. No, the taction on companies and on Government stock must go." i Speaking of the great progress that 'Sydney is"making. and o.f the prosperity being ' experienced in the State, Mr. nushes said that this prosperity had nothing of the " boom " variety about it, but was solid and sound. As for the talk of a stringent tendency in. the monev market over there, he had heard nothing of it, and although it was about time for another drought period to come along, at present everything and nearly everyone were flourishing. At the same time, of course, until the Federal hanking proposals, still in the building yards, were launched and properly understood, there was sure to be a certain amount of financial sensitiveness, Tor none knew yet what would be the outcome of the Labour Government's financial proposals, or how they would work.

Another matter which was filling a lot of time in the minds of people who wanted to see the various States brought into closer touch wag the unification of the railway systems in the matter of gauge. And no matter-what Government (Took up the matter, the longer this was deferred the costlier it would be and the longer would Australia be retarded from making progress as a united country, while the trans-continental railways were almost equally necessary. At the present time every State had a different railway gauge—Victoria oft. 6in., New South' Wales 4ft. Siin., Queensland 3ft tiin. and South Australia a mixture of broad and narrow. To convert these into a uniform gauge would therefore mean a tremendous expenditure, but it was absolutely necessary, and delay only meant adding to the confusion. In the same way, until the North and West Were linked by rail with the older States, the Federation could not work as it should, At present Perth was ten days ■ from Sydney, though It was only three weeks from Europe, while Northern Australia was practically isolated from the South altogether, and could never hope to go ahead and keep in touch with the ' population centres of the Continent under the existing conditions. The po«u tion was an impossible one for the progress of the countrv generallv. But whatever was done would have to be undertaken by the Federal Government. It | «*as not in reason, for Instance, to expect West Australia to run a line to the South Australian border unassisted. All the States would benefit and all should bear their share of the cost. These were some of the schemes which might be explained at the present conference of State Premiers, and he hoped gome satisfactory understandings would be arrived at to enable something bping done at an early date in regard to the railway ques- ' tion.