ALL-NIGHT SITTING

Dominion, Volume 17, Issue 283, 16 August 1923, Page 8

ALL-NIGHT SITTING

DEBATE ON INCOME-TAX BILL EXEMPTION OF AGRICULTURAL LAND SOME CLOSE DIVISIONS The House of Representatives sat till 5.20 a.m. yesterday, debating the Land and Income Tax Amendment Bill in committee. The chief objection to the Bill was directed to clause 78, which provided for the restoration of the former exemption from income tax cf income derived from the direct use and cultivation of land. Labour and Liberal amendments were moved on sub-clause (I), which read: “The following incomes shall be exempt from taxation: — “Income derived by any owner of land, in respect of the profits derived from the direct use or cultivation thereof, save that this exemption shall not apply with respect to any profits or gains referred to in paragraphs (d) and (e) of the next succeeding section (minerals, timber, dealings in live stock, butter, meat, cheese, wool, grain, fruit).” Mr. J. McCombs (Labour, Lyttelton) moved an amendment, to add the words after the word “land,” “with a total assessable income not exceeding £750.” The amendment was lost, on division, by 32 votes to 31, The division list was as under:— Ayes. ’ Noes'. Armstrong Anderson Atmore Bell Buddo Bitchener Corrigan Bollard Perrello Burnett Edie Coates' Fraser Dickson, J. Mo. Hanan Dickson, J. S, Holland Field Horn Girling Howard Glenn Jordan Harris Langstons Hawfcen Lye Hockly McCombs Hudson Mcllvride Hunter McKay Linklater McKeon Luko Macpherson Lysnar Masters McLeod Monteith Macmillan . Munro Massey O’Brien Murdoch Parry Nash Rolleston, F. J. Nosworthy Savage Parr Sidey Pomare Thomson Potter Veitch Rhodes, Sir R . Wilford Rhodes, T. W. Wright Stewart Uni Messrs. F. J. Rolleston (Timaru) and R. A. Wright (Wellington South) voted against tho Government. Mr. A. J. Murdoch (Marsden) voted with the Government. An amendment by Mr. P. Fraser (Labour, Wellington Central), that the limit of income for exemption from tax be £5OO. was lost on the voices. Mr. W. A. Veitch (Liberal-Labour, AVnnszanui) moved that the .limit be £lOOO. This was lost, on division, by 32 votes to 30. The division list was the same as in the case of the Labour

amendment, except that Air. J. R. Corrigan (Lib.-Lab., Patea) did not vote on this, or subsequent divisions. Air. H. Atmore (Lib.-Lab., Nelson) moved an amendment, that the limit of income be £l5OO. This was lost by 32 votes to 30. On the final division, that the clause should stand, the Government had a .majority of 44 votes to 18. Alessrs.' F. J. Rolleston (Ind. Reform, Timaru), Sidev, Hanan, and Veitch (Lib.-Lab.) votoil with the Labour Party. Liberals who supported the Government on the division were: Alessrs. Atmore, Perrelle, Edie, Horn, Lye, Alacpherson, Masters, Alurdoch, Thompson, and Wilford. The pairs were: —For the clauses, as in the Bill: Alessrs. J. C. Rolleston, Williams, Isitt, Henare, Guthrie, Sykes. Against: Messrs. Ransom, Sullivan, Bertram, Ngata, Forbes, Smith.

PRIME MINISTER IN REPLY VOTING ON A PRINCIPLE. Just prior to adjourning the Primo Alinister addressed the House. “I do not know,” said Air. Alassey, “whether the Leader of the Labour Party meant it or not, but it looked to me as if be wanted something to amuse the readers of Hansard when he insinuated that we would make the difference out of the public employees. Nothing of the sort was contemplated, and nothing of the sort will be done. I hope that statement is clear enough. For what has taken place to-night I have no apologies to offer; and, further. I have no explanations to make. Those ftio voted with me all through the long, weary night, voted with me every time and voted on principle. Air. Holland: We never denied that. Air. Alassey: lam glad to hear it <The tax that is being removed by this Bill was a war tax. imposed for the purpose of raising money to assist in carrying on the war. At the time there was a great deal of discussion about it. and a great deal of opposition was shown to it. Promises were made by myself and other members of the Government, that, when the proper time came, Parliament would be asked to office the farmers and settlers back in the position occupied by them prior to the war. That was the object of this Bill. It was with that object that the members wiio voted for me stuck to me throughout the whole of the night. Anything less would have been a gross breach of faith, and I must say 1 feel very strongly about it, because tho promise was given and the nromise had to be kept. “Who can rightly support the principle of double taxation? If a man nays land tax in the first instance, and is subsequently called on to pay income tax on any earnings, surely he is double-taxed. Let mo say that many of these people did pay two taxes, right from the time the tax was imposed until the present time. It is worth stating that those with incomes have not been particularly numerous. It has been suggested that we, as a Government, are friends of the big landowners. Do hon. members not recollect the legislation of 1920. when the tax on the large landowners of this countrv was very seriously increased, and to such an extent that it was not worth while for a man to own a large block of land ? Even now the maximum is 7s. 4d. in the £l, instead of Bs. 9d.; it is a very serious ti.x. I told the earlier that I Hoped to ask the House to reduce the ordinary incomd tax—not the farmers’ income tax —and I hope to bo able to give effect to that promise.

Mr. Holland: I am afraid you will have to make us sit up all night again for it. Air. Massey: I am quite willing to sit up all night, half a dozen nights, if necessary, and I venture to say that I am a much fresher man now than the hon. member. Air. Wilford But you must admit you Jet a sleep during the day. Air. Alassey: I do when opportunity ° ff “There was not a single objection to the reduction of the tax on tea,” said the Primo Alinister. “Had that been for the benefit of the farmers, we would have had the House stuck up for hours and hours.”

TONGARIRO RAILWAY ADJUSTING NATIVE LAND CLAIMS A strong case for the Government being granted such powers as would hasten the construction of Jihe -Tongariro railway was made by the Aliniiter of Public Works (Hon. J. G. Coates) in the House of Representatives last night, in moving the second reading of the Native Land Claims Adjustment Bill, which authorised the modification of the conditions under which the Tongariro Timber Company were required to buiid a railway. Hon. A. T. Ngata (Eastern Maori) said the natives were not concerned With the standards of the line, provided it would get the timber out, and enable tho timber company to comply with its contract. The terms in regard to payment of royalties had, he understood, been agreed to. There was some opposition by a section of the Taupo natives, but these had been waved aside. The great majority of the natives were in favour of the proposals in the Bill. Mr. F. F. Hockly (Rotorua) said that there was a section of the owners who objected to. the variation of the terms made with the company. Their represenative was not in the Dominion at present, but they had suggested certain stipulations as a quid pro quo. The company had been behindhand, but with the exception of £6OOO, royalties were paid to date, but the natives thought they were entitled to interest on that sum. QSFasiramade shrdl cf cf cm cmfwye The Minister of Health (Hon. Sir Maui Pomare) said that as far as the Maori members in the House jvere concerned, they were quite prepared to shoulder the responsibilities of the Bill. Unless it were passed, the Natives would be losers in certain respects, and they were desirous of having their district opened up. The land was of the description which required fertilisers, and the railways would greatly assist in settlement. Tlie Minister of Railways said that care had been taken to protect the section of dissenting Natives in a guarantee for the payment of the cutstanaing money, but if they insisted on past interest, the negotiations ivop.id' tril through. Within two years of. tho completion of tho contract with Armstrongs, tho Tongariro Company had to complete a standard line, 'lhe Bill was read a second time. The Bill was later reported from committee without amendments, and read a third time.

SAVINGS BANK AMENDMENT BILL Discussing tho Savings Bank Amendment Bill in the Legislative Council yesterday, the Hon. ]}L Cohen said he had been asked to have this legislation postponed this session, although personally he was quite satisfied with it as at present framed. The Hon. Sir E. Mitehclson did not agree that there should bo any postponement. He pointed out. in passing, that some savings banks had experienced difficulty with only twelve trustees.

The Hon. E. W. Alison said that the amount of reserve provided in the measure was not sufficient security for depositors, and he moved an amendment to the effect that the amount oe altered from 10 to 15 per cent. The Hon. H. L. Alichel also took the view that 16 per cent, of reserve was not enough protection for the depositor, and there should lie a larger margin of certainty Further, be maintained that it should not be mandatory‘on the part of the trustee to dispose of cumulative profits. His principal objection, however, was to the first portion of clause seven, in regard to the percentage of reserve. The Leader of the Council. Sir Francis Bell, mentioned ijiat the 10 per cent, arrangement had? been in existence ever since the Savings Bank Bill was drawn up. As another member of the Council had stated, no bank co'tild stand a run, for the very simple reason that every hank had to invest its funds. He could not see any reason for accepting the amendment. The Bill was read a third time and passed, the amendment being rejected.

RANGITAIKI DRAINAGE BILL SECONDMREADING The second reading of the Rangttaiki Land Drainage Amendment Bill was moved by the Alinister of Internal Affairs (Hon. R. F. Bollard). The Alinister explained that tho classification of lands in the district for rating purposes was not >ll that was to be desired. Some were undoubtedl.y over-rated. The Bill was provision for the exemption of lands receiving only indirect benefit from the present rating, and for reclassification from time to time. Air. F. F. Hockly (Rotorua) said that the Bill would be cordially welcomed bv tho settlers. When first settled. part of the Rangitaiki was prart tie-ally a lagoon. Settlers had asked for a revaluation, but Ihe Alinister of Lauds (Hon. D. H. Guthrie) thought tlie time had not yet come for that. He was pleased that the Acting-Minis-ter had decided to take action. A petition would shortly be presented from the settlers of the swafnp areas. The Bill was read a second time. The Bill was reported without amendments and read a third time. LEGISLATIVE COUNCIL The Legislative Council met at . 2 p.m. yesterday. The Hon. Dr. A. K. Newman asked the Leader of the Council whether, now that Ross Land was a part of the Dominion, the Government would try to stop the destruction of whales by foreigners in our waters, thereby allowing a once ver J' lucrative trade to be restored to New Zealand. Sir Francis Bell replied that tlie boundaries of New Zealand had not been extended to include the Ross The Wanganui Harbour District and Empowering Amendment Bill, on the motion of the Hon. J. H. Gow, was read a second time. In moving the second reading, he stated that the work which had been done so far was very successful and it was confidently anticipated that the revenue would be still further increased when the money was raised as sanctioned in the Bill. The Leader of the Council moved the second rending of the Customs Amendment Bill, briefly outlining the measure and its effect on goods from countries with depreciated currencies, and emending tariff on tea and sugar, etc. The Bill was read a second time without discussion.