BITTER CLASH ON TAXATION POLICIES

Press, Volume CIII, Issue 30543, 11 September 1964, Page 3

BITTER CLASH ON TAXATION POLICIES

(New Zealand Press Association) WELLINGTON, September 10. Government and Opposition members clashed in a bitter debate in the Land and Income Tax Bill’s second reading in Parliament today. I he bill continues the 50 per cent rebate first granted in 1962 on land tax. Resuming the debate, which began last night, Mr N. E. Kirk (Opp., Lyttelton) said the Under-Secretary of Finance (Mr Muldoon) had provoked the Opposition into continuing the debate.

I'he Opposition would not tolerate the sort of speech Mr Muldoon made last night.

“During my speech Mr Muldoon has made eight interruptions. This is a poor performance and he is destroying the name of his party,” said Mr Kirk.

“He is well known for making personal attacks on the Opposition and then running out of the House because he can’t take the replies.” The Opposition was not opposed to a reduction in land tax if it actually affected the farmers, said Mr Kirk. However, the major share of relief went to commercial properties.

Mr S. A. Whitehead (Opp.. Nelson) said Mr Muldoon had lost his temper and made some astounding statements. The Prime Minister (Mr Holyoake): The old windbag’s talking. Mr Whitehead: Now we have it coming from the pansy.

i After questioning the exchange, the Speaker (Sir Ronald Algie) said he would . overlook the matter, but members should concentrate on the bill. Mr Whitehead said properties up to the value of £lO,OOO did not pay tax. Therefore any reduction did not affect the small farmer. Intention Queried Mr J. B. Gordon (Govt., Ciutha) asked what the Opposition’s intention was. “Do they want us to double or treble land tax or to abolish it?” Small farmers did derive benefit from the measure once they had cleared their mortgages. Mr W. W. Freer (Opp., Mount Albert) said he was I disturbed at the Government [presenting itself as the farm-

ers’ friend when it was only the large land-holding farmers’ friend. Of 72,000 farmers only 14,500 paid land tax. Mr H. E. L. Pickering (Govt., Rangiora) said land tax was not a good form of taxation. It showed little regard to productive capacity. Mr A. J. Faulkner (Opp., Roskill) said the bill could have been justified had it aided increased productivity. But the Government was giving away £700,000 in a year when it would borrow millions. Mr H. J. Walker (Govt., St. Albans) said the bill was an incentive to production. Benefit To Companies The Leader of the Opposition (Mr Nordmeyer) said the Government was halving the land tax for the third time. The Opposition would not oppose a reduction of the tax to small farmers but it opposed any reduction to the large companies. Mr Nordmeyer said he had never heard a greater misrepresentation of party policy than that made by Mr Muldoon who had said last night that the Labour Party wanted to impose a capital gains tax., Mr Nordmeyer said in another debate he had said if the Government continued to reduce land tax there would be increasing pressure for some form of capital gains tax.

“I have never said this party is in favour of a capital gains tax,” he said. The Minister of Justice (Mr Hanan): Will you ever impose a capital gains tax? Mr Nordmeyer said he could not say such a tax would never be imposed. However, it had never been contemplated. The acting-Minister of Finance (Mr Seath) said that, in effect, Mr Nordmeyer had said he agreed in principle to a capital gains tax. The Labour Party was anxious to reimpose some sort of direct tax on property. The bill was read a second time.