THE FINANCIAL DEBATE.

Evening Star, Issue 8553, 27 June 1891, Page 2

THE FINANCIAL DEBATE.

[From Our Parliamentary Reporter.] WELLINGTON, Junk 26. ' Mr D. Pinkerton rose to address the House with some diffidence after the old warriors who had spoken. He desired to Bay that he agreed with the proposals brought down by the Government, as he thought they had made an honest attempt to place the burden of taxation on the shoulders of those able to bear it. They had for years been promised that the Property Tax should be repealed, but this was the first attempt made to repeal it. Referenoe had been made to the Postmaster-General as being at one time a strong supporter of the Property Tax, but he would convince the House that the oontrary was the case, and he quoted from a speech made by Mr Ward in ' Hansard' to the effect that he was opposed to the Property Tax for a number of reasons, some of which were that it would stop capital from coming to the colony, and stop it from remaining in the colony. He (Mr Pinkerton) therefore contended that the Postmaster - General had been unfairly blamed in this matter. They had been told that instead of introducing penny postage the Government should have reduced taxation on the necessaries of life ; but, as one of the industrial classes, he thought it better to have a proper system of taxation introduced which would provide for the settlement of the land. A great deal had been made of reducing the duty on tea and sugar, and no doubt that was very desirable; but he thought a better plan was to revise the Customs tariff on some systematic plan, and they could afford to wait a year or two for a reduction on those necessaries of life. He took some exception to the proposed graduated tax, and he should prefer to eee an increase of the graduation on the unimproved value. He agreed with the principle of taxing invested capital instead of taxing a man's energies. Mr firyce had stated in his speech that nothing should be done to stop the flow of capital to the colony, and he thoroughly agreed with that, as it was what the present Government were doing. They wished to attract capital to the soil. He was sorry to see Mr Macarthur display such vindictiveness as he had shown during his speech, and he combated several statements made by the member for Rangitikei. Referring to Mr Scobie Mackenzie's speeoh, he said it was a very good oratorical display, but had no depth of argument. As to what that hon. gentleman said about large estates, he (Mr Pinkerton) said that if those estates were broken up, surely the more revenue would be received from them, owing to the number of families that would own them. They were treated to some alarming statements about capital leaving the country, but it seemed to him that was similar to the cry they always heard about our credit failing in London when a Liberal Government was in power. He hoped they would continue to hear those threats. They were similar to those made in France after the Franco-Prussian war. People thought that the country was going to be ruined owing to the large indemnity required by Germany, but the peasantry and small landed proprietors brought in their savings and offered them to the Government, and the result was France was able to meet all her engagements. Supposing capital did leave the colony, they still had the country left, as well as the means for providing more oapital. He, however, had no fear of capital leaving tho country. He did not agree with what had been said about the manner the Government dealt with the sinking fuud, and considered the money should certainly be spent on the prosecution of public works which would keep the people in the country. What the Government wanted to do was to raise the same amount of revenue by their proposals as was now realised, only they wished to make the taxation fall more equitably on the shoulders of all concerned. As regards the exodus of the people from the colony, of which so much had been made by the previous speaker, the reason of that exodua was because they could not get work in the colony; and that was surely not to be deprecated. The hon. gentleman, however, had twitted the Government with driving people out of the country, and yet with giving work to tho unemployed. If that were the case they could not be driving people away, He contended that the present party in power were doing their utmost to deal with the evils of absenteeism. Mr Duthio had complained of police officers being punished because they did their duty during the late strike. He (Mr Pinkerton) could not say what took place in Wellington, but having some experience of unionism in Dunedin he could safely say that in some instances the police were assisted ia keeping order by the strikers themselves. He admired Captain Russell for his candid opinions about the sacredness of property. He respected property, too, but he did not believe in the property of tbe working men being taken from them because they were too poor to assist themselves. In conclusion, he wished to say the proposals of the Government would receive his hearty support. Mr Rees began the debate this evening by dilating upon the great services lately rendered by Sir G. Grey to Australia, and by expressing his regret that the present debate had not yet risen to tbe level of the occasion, seeing that so important a change in the inoidence of taxation was pending. He believed that the bulk of the people of the colony were averse to the Property Tax, and for his own part he could conosive no fairer tax than a land and income tax, Having defended the report of the Native Land Laws Commission, he went on to charge the Atkinson Government with being wholly responsible for the present condition of the colony's affairs. In reality the colony was only recovering from a financial debauch. Every department of State had been left by the late Government in a condition of utter confusion. On the eve of quitting office they made an unconstitutional appointment of a Supreme Court judge; then they failed to discover the defects of the Public Trust Offioe, which ought to have been found out long before ; and they made appointments to the Legislative Council whioh were reflected upon by the Secretary for the Colonies in his despatch to the Governor. It would take skill, patience, courage, and tact to make matters right. He Btrongly supported a land and income tax, but said that he would go so far as to entirely exempt improvements in calculating the land tax, and would bring the income tax to bear on all incomes derived from New Zealand whether by persons living in England or those who lived in the colony. By this meanß LIOO.OOO a year could be added to the revenue by absolutely fair and just means, He defended at some length the principle of taxing the bondholders of the colony and its local bodies, and submitted to Ministers that there was a precedent for this in the action of the United States, England, and every European nation that had an income tax. It was neither unjußt nor impolitic to thus tax the holders of the publio debt, not in an exceptional degree, but in the same measure as the oolonißts taxed themselves, Aa to the labor question, the only possible solution of it was partnership between capital and labor upon a proper system of economics, in which each Bhould prosper, but not at the expense of the other. This was foreshadowed in the encouragement given by the Government to co-operation, Unless some such system were introduced there would be civil war in civilised communities. In conclusion, Mr Rees took a hopeful view of the credit of the colony in London, as evidenced by the recent "booming" spoken of by the cable newß. He hailed it as the result of the new Liberal policy. If the measures sketched in the Government programme were carried out, the result would

be a period of great prosperity to the colony. . < . The other speakers were Messrs Maoin tosh (Wallace), J. W. Kelly (luyetoargffl) Taylor (Sydenham), Hogg (Masterton), and T. Mackenzie (Clu.ttta).