TAXING BILLS.

Auckland Star, Volume LX, Issue 221, 18 September 1929, Page 3

TAXING BILLS.

THE FIRST ROUND. A LIVELY SKIBMISH. PRIME MINISTER SCENTS OBSTRUCTION. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. The introduction of the Land and Income Tax Amendment Bill in the House of Representatives late this afternoon led to brief but important exchanges of opinion between partv leaders. It opened with questions from the Leader of the Opposition seeking explanations regarding any changes which niight have been made from those first outlined in the Budget. When the Prime Minister mentioned that the limit at which super tax commenced to operate had been raised from £12,500 unimproved value to £14;000, Mr. Bitchener (chief Opposition Whip) remarked: "What a relief." Sir Joseph: I am glad you appreciate it. The people in this country who arc concerned will appreciate it very much. Mr. Kyle (Eiccarton) : Cut it out altogether and they will appreciate it more. Sir Joseph Ward (emphatically): I am not going to cut it out altogether. Answering a question as to whether the measure still contained the provision that land or income tax would bo . paid whichever was the greater, Sir Joseph replied in the affirmative. He also mentioned that the constitution of the commission to consider hardship cases would be a matter for consideration, as no one had been specially named, but three commissioners would have to' be appointed. Won't Go Before Committee. The Leader of the Opposition (Rt. Hon. J. G. Coates) suggested tha': the bill be referred to a select committee. "I am not going to send it to a committee," promptly answered the Prime Minister, who was backed up bv the Hon. T. M. Wilford's interjection that nobody could name a bill of that character which had been put through such a course in the last 40 years. "I have a dim recollection of one," replied the Opposition Leader, who added that at any rate the House ought to judge which was best for the country. Sir Joseph Ward: The vote in.t'-j House on your amendment was two to one against. Mr. Coates: That vote has been the cause of bringing the Government to very carefully consider the Budget proposals, and it has reconsidered the whole question very carefully. After that vote there was considerable alteration in the' views originally intended, and I take it the Prime Minister may yet thank the Leader of the Opposition for the excellent service he rendered, though it might have been unpleasant when he drew his attention to defects. Trying to Kill the Bill. The retort of the Prime Minister was that the Government was not likely to be misguided by anything from * the opposite benches. He knew just as well as the Leader of the Opposition that the latter was hand in hand with a small section who were trying to kill the material clauses of the bill. Mr. Coates: That's nonsense. The Prime Minister: I know it from communications I have received from farmers all over the country who are not wool kings or large landowners, and who ask that this legislation should !;c put through with a slight improvement as to the. point at which the taxation should commence, and I have arrived at that conclusion to meet the aspirations of the great majority of the farmers throughout the country. I am not beating the air, but submitting these proposals to be voted on, hut the Leader of the Opposition is irresponsible. He has no proposals to submit, and has never submitted any of value to the person who wanted to get on the landj and who wanted easement, and at the same time that the large landowners should give their fair contributions to the countrv.

Mr. Waite (Clutha) : That is not a fair thing. What had been the result? asked Sir Joseph. There had been bogus protest meetings called by a small class, where resolutions were passed as though Ihey represented the views of a large attendance of farmers. But it was perfectly, futile when it came to the point bi freeing the large landowner from taxation which he had been escaping and which as a result had relieved him of the burden of the war. Over 85 per cent of the farmers were not interfered with at all by the legislation lie proposed, and he was hearing howls of opposition from members opposite before they had considered the proposals. What did the Leader of the Opposition mean by wanting the bill referred to a select committee? To keep it there two or three months? "I know what I am trying to do," added the Prime Minister, "and I know what the lion, gentleman is trying to do. The matter is plain to anybody.

The Hardship Aspect. Expressing the belief that provision for cases of hardship was very necessary, the Leader of the Labour party (Mr. H. E. Holland) stated that when the bill was before the House he would have no hesitation in moving to amend it with a view to improving it. If the bill erred at all it was on the side of taxing the large landowner too lightly. When all was said and done the large landowner would rather pay income iaX and keep his large estate intact. A Eeform Member: But what if he has no income? Mr. Holland: If he has no income he wouldn't pay tax. If he has large estates and is not earning income it is a sign that he is not working the land, and the principle must be enforced that the holder of land must use that land, and not be allowed to keep it for speculative purposes. Mr. Holland said ho could not remember that Mr. Ooates liad ever sent a bill of this character to a Select Committee for consideration, and the Opposition must be tested by what it did when it occupied the Treasury benches. Mr. Coates rose to deny the suggestion that lie represented a" small coterie of landowners. He said he had not been in communication with any landowners except those who had written to him, and also to the Prime Minister. What the Eeform party said was that there must first be a classification of lands suitable for closer settlement, and that bursting-up taxation should be applied only to that class of land. Otherwise it meant that the Government was merely shifting the weight from one foot to the other, and the probabilities were that the man who was put on the land would not be as successful as the man who had been driven off by what might be termed ill-considered legislation. A A