TO-DAY PARLIAMENT

Evening Star, Issue 20255, 16 August 1929, Page 12

TO-DAY PARLIAMENT

THE FINANCIAL DEBATE LABOUR SUPPORTS LAND TAX PROPOSALS [Psu United Press Association.] . WELLINGTON, August 16. The House of Representatives met at 10.30 this morning. The Premier laid on the table various reports on administration of the mandated territory of Western Samoa. The Hon. J. G. Cobbc, continuing the financial debate, said it was not the intention of the Government to harass tho small fanners. Its -desire was to increase the number of farmers, and enable young men to earn a decent living on the land; and if tho Government did not carry out that policy soon some other Government would, and perhaps in a more drastic manner than was at present proposed. Mr Cobbe asserted that Reform members were using the increase in the primage duty as a stalking horse. Their real objection to the Budget was the proposal to increase the tax on large land holdings. The Government’s laud settlement scheme was designed to absorb people who were at present out of work, but there was always the possibility that there would still be cases to ;e dealt with, and he hoped that before long an unemployment insurance scheme would bo in operation in the dominion. The Government would stand or fall by its policy of closer land settlement. Ho agreed that there were many properties that were not suitable for very close subdivision, and in such oases a thousand acres or even more were necessary for each farm; but that was no reason why such land should be held in blocks of 10,000 acres or more.

Mr M'Combs said that Mr Jones had stated that the deficit could be paid out of the Consolidated Fund, yet the same speaker had raised an objection to the farmers paying their taxes out of surplus profits from the preceding years. Mr M'Combs considered that Sir Joseph Ward was on sound lines in budgeting for a surplus, so that ho could take a large) - portion of the revenue money for public works. A Reform member had suggested something in the nature of a hardship clause in connection with the proposed new laud taxation. Mr M'Combs remarked that there had been a hardship clause In connection with the Public Service salaries cut, but the Reform Administration had not allowed it to operate in one instance. And now they were asking for a hardship clause for the large squatters. Referring to a case in which it had been claimed that reduction of the amount of mortgage exemption would impose hardship on the landholder, Mr M'Combs said it was not taxation, but his interest bill that was this man’s difficulty. His mortgages actually exceeded the unimproved value of the land, and if it eventuated that he nominal owner could not pay the land tax, then the real owners, the people holding the mortgages, should have to pay. It was unfair that this valuable property should escape paying tax because the individual occupying it had mortgaged it so heavily. Mr M'Combs expressed opposition to the company tax, which, he said, was not a fair method. It taxed the profits of the concern as a, whole, but was often tho means of enabling individuals to escape taxation they should justly bear. He did not suggest complete and im-. mediate abolition of the company tax, but until somo adjustment had been made in this direction the Government could not consider a super tax on incomes. Once, however, that this anomaly had been removed it might be possible to take such a step. Mr Williams stated that, as a land owner, he had not the slightest objection to paying his fair share of taxation. ft the object of the proposed increase was to raise more money, which might ho necessary, and so long as it was fairly distributed, he personally would raise no opposition; but if the object of the increased taxation was to break up estates, he would like the Government to consider one or two points. He presumed'it was the first duty of any Government desiring to increase the productivity of the country to bring in undeveloped land. This consisted principally of two classes, bush land and open land partially covered with manuka, fern growth, and Native shrubs. When any snob land was brought under a development, scheme care should bo taken that the settlers were placed in a position to be able to continue on the land. For instance, in the case of pumice lands, an important aspect was to get in manures quickly, and from that point of view the continuation of tho Rotorua-Taupo railway would have been justified. In reply to an interjection, he said he did not consider that the construction of a good road would be equally satisfactory. Roads would bo costly to construct, and their maintenance, in vew of the heavy loads which it would be necessary to carry over, them, would be a. difficult and costly proposition. Mr Williams added that it seemed to him to be side-tracking the issue to refer to the Rotorua-Taupo railway as a branch lino.

Reverting to his main point, lie said he thought the Government should first bring in suitable undeveloped land, and when that supply had been exhausted it should then turn to less developed lands at in use. Fie did not think it would bo I'air to impose a penal tax on land that was not suitable for subdivision. The Government, furthermore, should hesitate to impose a penal tax unless it considered that the properties under consideration could h© used, to the greater advantage of the dominion generally. The House adjourned at 1 p.m.