LEGISLATIVE COUNCIL. (From the Wellington Spectator.) Friday, June 13, 1851. Mr. Hickson moved the resumption of

Daily Southern Cross, Volume VI, Issue 429, 8 August 1851, Page 3

LEGISLATIVE COUNCIL. (From the Wellington Spectator.) Friday, June 13, 1851. Mr. Hickson moved the resumption of

Committee on Customs bill. On the motion of Mr. Hickaon, that tobacco required for the purposes of sheepwashing be taken out of bond duty free. Mr. Cautley entered into some calculations to shotfthat the difference between a partial and a total remission of duty to the sheep-holders would be so considerable as to render the latter a great boon to them. If the sheep were dipped when the fleece was longest, the process would be most expensive, but this would be the time when the sheepowner would require most encouragement in his efforts, both in savjng the wool and eradicating the disease ; the cost at other times would be considerably less. His calculations did not include freight and other expenses, so that any partial reduction of duty would be comparatively useless. He had heard it remarked that it was impossible that the disease could be cured, but he had seen a flock of between

2,000 and 3,000 sheep so nearly oure& as, in the opinion of competent judges, to be pronounced froo from scab, and ho felt sanguine if tho measure passed the Council the disease would he eradicated. If it were necessary to raise a duty from this source, he would rather submit to a poll tax on sheep, which would equalise the duty on all sheepowners, than to the unequal operation of the present tax, which pressed most heavily on the man struggling with adversity. By remitting the duty the sheepowner's hands would be freed, and an increased inducement held out to him to keep his flocks clean, particularly in new i districts. From the inquiries he had made i he believed that the application of spirits j of tar would effectually render tobacco unfit for other purposes, and it would be the fault of the sheepowner if, on receiving so great a boon as a remission of the duty, he did not exert himself to keep his flocks clean. The Collector of Customs was perfectly convinced, if the present rate of duty were maintained, and the duty remitted for the purposes of sheep washing, the Government would never be able to prevent smuggling, and he was so impressed that the course proposed would be attended with unfavourable consequences to -the revenue, that he would rather see the duty reduced to 3d. per Jb., and alt to pay alike, or the duty altogether removed, and a higher duty imposed on other articles. Mr. Bell was opposed to the amendment, and thought, if it were passed, the remission of duty should only be allowed for a limited time. The only strong argument that had been used by the hon. member (Mr. Cautley) was that the remission should be made for a year or two, in order that the experiment might be fairly tried, if it was not clear that the use of tobacco was effectual in curing the disease, the relaxation would not be of public benefit. There was no occupation which in its whole scope afforded so good an investment of capital as sheep farming, and it was worth the sheepowner's while to protect his capital by keeping his flock clean. He (Mr. B.) considered it would be hopeless to expect to get rid of the disease, and this, he believed, was the feeling of the Nelson sheepowners. He therefore thought it would not be desirable to make the relaxation permanent. The Colonial Secretary of New Munster thought it was hardly fair to argue the question on the ground of the profits of the sheepowner. The point for their consideration was whether it was just to put so high a duty on what was to him a necessary article of consumption. He (the Colonial Secretary) would rather see, the revenue injured than that so important an interest should be hampered, and if so enormous a duty as the present rate were levied, it would seriously interfere with that interest He thought the remission of duty might be limited to unmanufactured tobacco, but if the notion that the disease was ineradicable were prevalent, the continuance of the present high rate of duty would greatly tend ' to confirm such a notion. His Excellency the Lieutenant-Governor quite agreed with the former speakers as to the necessity and importance of affording relief to sheepowners by a remission of the duty. In Sydney and Port Phillip, tobacco was grown which was nearly equal to negrohead tobacco for the purposes of sheep washing. He thought the most advisable course would be to lower the duty, and to make tobacco free for sheep washing. Mr. Bell explained that in his remarks on the large profits of sheep farming, he wished to say that it was an occupation which, from the amount invested, made it worth the while of sheepowners to secure their capital by incurring the expense necessary to get rid of the scab. The sheepowner had the use of the land for his flocks nearly gratuitous, while the land used for the production of food was heavily taxed, either in the sum paid for its purchase or the rent required from the cultivator, and in the expenses of clearing. Nearly all the stations were established with a small amount of capital, and if the pastoral interests were taken in the aggregate,- and the capital originally invested compared with, the returns of the present year, it would be found that notwithstanding the heavy losses said to occur from scab and other causes, these returns would show an increase of fifteen times the amount originally invested. It was therefore unfair to mislead the public on this question by statements of heavy losses. He (Mi\ B.) agreed with the Collector of Customs in his remarks on the inducements to smuggling held out by the proposed alteration, and thought it would be impossible to detect it. Sir George Grey would offer a few observations on the proposal before the Council, and in doing so would state that in making any change it would be desirable either to lower the duty so that all should pay alike, or to keep the duty at its present rate, allowing tobacco free for the purpose of sheep-washing. Not possessing the warm imagination or sanguine temper of youth, he was of opinion that the little creatures that occasioned the disease, and which they were intending to destroy, would make such efforts for self-preservation that they would still continue their existence, and that it would be found expedient that the reduction of duty should not be allowed for a limited period but should be permanent. He thought the proposal of the LieutenantGovejraor hardly .met the case, as, in £c-

during the duty on tobacco if all paid alike, the amount of duty paid by the sheepowners would in some degree make good the loss of revenue occasioned by the reduction, but if the sheepowners wore allowed to have tobacco duty free, it would be necessary to make good the loss by taxing other interests. In reverting to the original proposition, he was of opinion that a system might be devised and regulations framed which would meet the objections of the Collector of Customs and prevdnt any fraud on the revenue. A certificate might be required from the Commissioner of Crown Lands that the tobacco was necessary for the use of the person applying for it, a further guarantee might be given that i the tobacco should be applied to the purpose for which it was intended, and a third guarantee, that it should be spoiled before it was taken out of bond. He thought a separate clause might be framed to this effect, by which it might be lawful for the Governor to allow the use of tobacco for sheep-washing duty free under certain regulations, so that it would be in his power to stop it altogether if it were found that abuses crept in and advantage was taken of the indulgence. He (Sir George) would meet the deficiency of revenue by an increase of one shilling per gallon on spirits ; this was a duty on a luxury of the worst kind, and if it were slightly raised, in a few years the increase of revenue would be so considerable as to enable them to reduce the duties on a great many other articles. His Excellency said he wished some little time to consider the subject, and would have a separate clause drawn by which the duty would remain the same as at present, subject to a remission in favour of sheep owners in the manner proposed. The following additions to the schedule were agreed to: — Cyder, Is. 3d. per dozen ; plain cottons, 36 inches, and under, in Width, Jd. per yard ; above 36 inches, $d. per yard. The following articles, under the head of Marine Stores, were agreed to be admitted duty freo : Sail canvas, copper, composition sheathing, bolts and copper nails of ditto, cordage ; anchors, chain*, and chain cables ; junk, oakum, pitch, vegetable and mineral tar — ditto ditto ; boat oars. On the motion of Mr. Hickson, that empty oil casks, hoop iron and rivets should be admitted duty free, to encourage whal ing, after some discussion, Sir George Grey said» that in trying to make this colony a depAo for oil", it would be necessary to allow oil-casks to be free of duty, so that the masters of vessels would be quite certain to get empty casks to replace those that wero full. If oil casks were added to the articles admitted duty free, it would be a matter of trifling consideration as regarded the amount of duty, and would bo in" accordance with the great principle they were desirous of carrying out — namely that of making New Zealand a free-trading depdt The charges on vessels were so triflings that the ports of New Zealand might bo considered free ports j the duties levied were on articles for internal consumption, and did not interfere with the commerce of the colony. The Collector of Customs proposed the addition of a considerable number of arti cles to the list of those subject to a fixed duty, the consideration of which was deferred to the next sitting of Committee. On the item " baggage of passengers*' being proposed among the articles free of duty, a discussion arose as to the articles in this term, when Sir George Grey said he had used these words advisedly, as he had come to the conclusion that it would be expedient that a discretionary power should be left with the Collector of Customs on this head. He had been impressed with this opinion by what he saw at Lyttelton, where a considerable number of immigrants bad arrived within a few hours, and where there were few houses on their arrival, and he had put those large words iv, leaving it to the Collector of Customs to say what those words meant. New Zealand was a country in which there would always be settlements in various stages of progress, the older set tlements being densely peopled while other parts would be nearly uninhabited, and it would be better to entrust a discretionary power to the Collectors of Customs — who would be punished by removal from office if they used it improperly. j Mr. Cautley proposed that agricultural implements be added to the articles admitted free 6f duty, as from their bulk they were subject to aheavy freight, and the remission of duty would be an encouragement to the farmer to introduce implements of the best construction and with the latest improvements. Mr. Outfield thought that in a new colony where labour was so scarce, the introduction of machinery ought to be encouraged. Sir George Grey said that from his earliest youth he had been accustomed to hear the cry of agricultural distress, and had hoped not to find it repeated in this distant part of the world. If the remission of a duty which last year only amounted to £9 would relieve that distress, he thought the Council would have no objection to include this item among those to be admitted duty free ; and the remission of the duty, though not of considerable amount, would appear gracious to the agricultural interest. On the duty on Spirits being proposed to stand as at present, The t Colonial Secretary of New Minister

moved as an amendmeis the addition of one shilling per gallon to the duty on spirits. He supposed the proposed remission of duty on tobacco would occasion a loss of one-third of the revenue received from that article, and the additional duty on spirits would replace that loss. A discussion ensued, when the Committee divided : for the amendment, 8 ; against it, 5. Amendment carried. A second amendment, that the present duty on Spirits be increased 2s. instead of Is. per gallon, was lost— the numbers being for the amendment, 4 ; against it, 9. The Attorney-General of New Zealand then observed, that as the Committee had, for the present, disposed of the schedule, he would now call their attention to the body of the Bill. . When first drawn it was contemplated merely to substitute on certain articles of merchandize, a specific for an ad valorem duty, and the Bill as printed was accordingly intituled "An Ordinance to impose a Specific Duty on certain goods |in lieu of an ad valorem duty ;" and the i provisions of the bill had been framed with that object ; but the Council had sincethought it desirable that the whole of the | Customs law, so far at least as it related to ! the Tariff jof Duties, should, for the sake of | convenience, be comprised within a single j Ordinance. As the Committe had acted upon that view, and had inserted the scale of ad valorem duties, together with the specific duties in the same Schedule, it ■ would be necessary to reconsider the provisions of the bill, in order that they might | be adapted to the form of the Schedule, as already agreed upon by the Committee. As the necessary change would be matter of form rather than of substance, he (the Attorney-General), if not out of order in doing so, would at once submit to the consideration of the Committee the necessary amendments in order that, if agreed to, I they might be adopted without further adjournment. The Attorney- General then proposed that instead of its present title, the title of the bill should be "An Ordinance to alter and amend the duties of Customs ;" and instead of the provisions of the bill as printed, that clauses should be added repealing the Ordinance under which the duties of Customs are at present levied, substituting the scale of duties agreed toby the Committee, providing for their collection, and prescribing the time when the Ordinnance should come into operation at the several ports and places throughout the colony. The proposed amended clauses were then read and agreed to, and the Committee adjourned. His Excellency the Lieutenant-Governor gave notice of his intention to inquire if it was the intention of the Goyernor-in- Chief to bririg in any measure during the present session on the subject of education ; he referred more particularly to this subject, as the present Ordinance was now inoperative, the Executive Council of this Province having declined to make any appropriation to schools for Europeans, so that the measure was only confined to the nativepopulation. The Council then adjourned.