YESTERDAY'S PARLIAMENT

Evening Star, Issue 17484, 15 October 1920, Page 7

YESTERDAY'S PARLIAMENT

LEGISLATIVE COUNCIL.

The Master and Apprentice Bill was committed, when a new clause was added to" increase the penalty for tho employer who ill-treats his apprentice or fails to "instruct him from £lO to £SO. The Bill was reported with this amendment, read a third time, and passed. The Bay of Islands Harbor Bill was read a third time and passed. The Gisborne Harbor Board Amendment BUI (the Hon. J. M. Geddis) was read a second time without discussion. THE TAXING BILL. . In moving the second reading of the Land and Income Tax Amendment Bill Sir F. D. Bell, referring briefly to the proposal to put a super-tax on unimproved land; and to the clause which authorised the recovery of the tax in respect of deduction allowed for depreciation of assets sold at an enhanced price, said possibly the clause providing that for the purpose of_ Income Tax two or more companies with substantially the same shareholders may be treated as one company might have to be strengthened nest year. He felt that much taxation was being evaded by the formation for that purpose of subsidiary companies. The clause making local bodies agents of debenture-holders in respect to the payment of Income Tax was_ a good one, and would result in local bodies' loans being more attractive to large investors.

The Hon. J. Barr feared that the proposal to make local bodies responsible for the collection of the tax on debentures would injure the prospects of local bodies when going on the loan market. Sir J. R. Sinclair said the fear on tho part of local bodies had been allayed by explanations. The H0n.,.-P. J. Nerheny said the fears of the Auckland City Council had not been allayed, for many of their debentureholders were people of small means who would have to go to the lawyers to make out returns: therefore what they saved in taxation would go to the lawyers. That would result in those people investing elsewhere. .

Sir F. D. Bell said he thought Messrs Barr and Nerheny were thinking of the Bill as originally introduced, but he was able to assure them that, so far as money that counted in_ local bodies' loans—namely, that of insurance companies, etc. —there was an extra inducement to invest. Such investors now had a definite rate to pay lower than would have to be paid under ordinary Income Tax. The object of the legislation, it was true, had been in the past to make holders of bearer coupons pay tax, but more particularly to encourage large investors to place money in local bodies' loans. That would be a direct loss to the Government and a benefit to local authorities.

The Bill was read a third time and passed.

HOUSE OF REPRESENTATIVES.

The Lands Committee recommended that the Rotorua Town Leases Bill be allowed to proceed., This raised a lengthy debate over the leasehold-freehold principle, which lasted till the dinner adjournment. Tho Counties Bill, in committee, was the evening programme. When claiiso 41 was reached the Leader of the Opposition proposed to strike the clause out- with a view to substituting for the present county franchise a franchise similar to that enjoyed in the municipalities. The amendment was rejected on a division by 37 votes to 21.—0n clause 43, Mr Poland moved to strike out sub-clanse b, which he believed, assailed the voting rights of the legitimate miner.—Clause retained by 65 votes to 15. On Mr Hawken's suggestion,_Jhe Hon. G. J. Anderson agreed to Tefer the" question of providing an arbitrator to settle disputes between ridings of _tho counties to the law draftsman, and if a suitable clause could be drafted it" could be inserted in the Legislative Council.—The Bi?t was reported, read a third time, and passed.