A MINISTERIAL STATEMENT.

Evening Star, Issue 8772, 12 March 1892, Page 1

A MINISTERIAL STATEMENT.

Immediately previous to his visit to the West Coast Sounds in the Hinemoa—which, ostensibly official, was made the opportunity of a cheap trip to politicians of the "right color," their "sisters, cousins, and their aunts"—the Hon. Mr Seddon delivered himself of a long speech at Blenheim. The honorable gentleman was evidently primed with arguments, presumed to be conclusive, with which to utterly confound the enemies of the Ministry, and very especially the hundred and odd newspapers which presume to unfavorably criticise their policy and conduct. It is certainly embarrassing that the Press should be almost unanimous in condemning both; and we might suggest that Ministers would do well to consider that there must be exceptional reasons for such unanimity. Mending their ways would be more to the purpose than "taking the platform," which, Mr Seddon states, they believe to be "their duty"—in the delusive hope, we may presume, of winning over to their side tke intelligence of the Colony. The Government evidently find themselves in hard straits in respect to the new taxation, the principles of which it is not any longer even attempted to justify. Mr Seddon—who, there is no doubt whatever, spoke under instructions from the Cabinet—in his defence of the land tax applied himself almost exclusively to the question of possible results, especially as affecting the more numerically important of the agricultural classes. The ground taken during the session and more immediately subsequent thereto has been practically abandoned, and Ministerial efforts are now concentrated upon securing the support of the country settlers by an appeal to their self-interest. To this end Mr Seddon quoted elaborate calculations which he had, he said, caused to be prepared, showing how and in what degree, according to the value of their holdings, the small farmers will be relieved by the substitution of the land and income tax for the Property Tax. This ad captandum argument should scarcely influence any man endowed ■with ordinary common sense. It is, of course, as clear as that two and two make four that the exemption of improvements up to the value of £3,000, together with the £SOO exemption on the value of the land, will let many small farmers off pretty well scot free as regards the land tax j but what guarantee—or, we may say, probability—is there of finality in the assessment under the Act of 1891 ? And how are the class of settlers referred to likely to be otherwise, and indirectly, affected by the new taxation as a whole? These are very grave considerations, and most undoubtedly are having, and will have, due weight with those whom Mr Seddon and his colleagues would lull into a "fool's paradise." The honorable gentleman entirely avoids the question really at issue. The way in which the incidence will work out is unimportant compared with the utter viciousness and economic unsoundness of the principles on which the taxation is based. This is the view taken not only by the New Zealand Press, but by ' The Times,' the 'Economist,' and leading Australian papers; and to this Ministers have no reply—"the oracles are dumb." Mr Seddon having, satisfactorily to himself, demonstrated that a large number of persons who now pay Property Tax will either pay nothing at all or only a mere fraction of what they do at present, found himself constrained to give some sort of explanation as to where the revenue was to come from to make up the amount contributed by the Property Tax. "To a large extent," he said, "from the graduated " land tax, the absentee tax, and the "income tax." From the latter the Treasurer, according to his own showing, does not expect much, and i 3 hardly likely to be disappointed. The tax, sound no doubt in principle, is altogether unsuited to the conditions of life in the Colony, and will prove, we feel certain, financially a failure. As to the graduated land tax and the •absentee tax, these are very rotten reeds indeed. The object, avowedly, is to do away with large estates and the holding of landed property by persons, non-resident in the Colony. If, therefore, the policy is successful, the revenue from these sources must cease; it cannot prudently be considered as a factor in the colonial finance. Knowing Mr Ballance as a financier, and in the light of the experience of previous " Liberal" Governments in their expenditure—not to speak of what is going on just now—he must be a sanguine man indeed who has any confidence that the land tax will be continued within the limits of the Land and Income Tax Assessment Act, 1891. Much more within the bounds of probability is it that the exemptions will be materially reduced, and the amount of the ordinary taxation increased from the normal penny.

Mr Seddon's remarks on the land policy of Mr John M'Kenzib were on the usual Ministerial lines, and indicated nothing further than that the Bill of last session will be reintroduced, which it was already known would be done. The honorable gentleman did, however, give a little information, not hitherto generally made public, as to the attempt to induce the late Governor to pack the Legislative Council with "all sorts and conditions of men," warranted to vote the great Liberal party ticket Ministers, he

stated, "had approached His Excel- " lency, and recommended the names "of gentlemen who were entitled to "that honor, and who would have "donejustice to all classes had His "Excellency scon fit to approve of "them ; but ho would only appoint a " certain number. They did not do as " their predecessors, who had accepted " six when they asked for eighteen; "but took up the more dignified posi- " tion of refusing to take any if they " could not get all." It is satisfactory to the country that Lord Onslow, under great pressure, no doubt, stood firm to his duty; and we are inclined to think that Lord Glasgow will not be found more amenable. Mr Seddox does not mention explicitly how many of the " right color " it was desired to appoint, but that "the number they would only have put "them on a fair footing with those " who were there " ; and, as he only reckons five members at present upon whom the Government could rely, we may presume that the list presented to His Excellency contained from fifteen to twenty names. How many hopes have been ruthlessly clashed to the ground will never, possibly, be known. Ministers must now be in a sore dilemma to select from the many the few who can be legitimately appointed to till death vacancies and bring the Council up to an effective working strength.