PARLIAMENT

Greymouth Evening Star, 29 August 1929, Page 3

PARLIAMENT

MINISTERIAL REPLIES.

(Special to ‘-Star.’’)

WELLINGTON, August 28.

In reply to Mr. Barnard in the House to-day, Sir J. Ward said that the Government had no intention of altering the present position with reference to appeals to the Privy Council. He had, I not received any official communication on the subject -from the Imperial Government. Asked by Mr Carr whether he will review the findings of the Royal Commission on land and income taxation for 1924, with a view to putting its findings into operation as regards the substitution of individual taxation foi company taxation, and further in the direction of taxing dividends and profits from investment generally, Sir J. Ward replied the Government has considered the report, but is of opinion that for financial reasons alone, the present is an inopportune time for putting the recommendations made into operation. The proposed changes in the incidence of taxation are so wide sweeping in their effects, and involve such a large loss of revenue that it is not feasible seriously to consider them at the present moment. Mr Kyle asked the Prime Minister whether his attention had been drawn to a deficit of over £2,000,000 as shown in the Australian Federal Budget, and to the proposal’ of that Government to reduce the deficit by imposing a super tax of 10 per cent, increase on taxable individual incomes exceeding £2OOO. Sir J. Ward replied: I have seen the references in the Press to Australian proposals referred to, but if the question' is intended to hold up these proposals as an example to the Government, I have to point out that the Reform Government in 1927 increased the income tax payable on incomes from £450 to over £BOOO. The present Government’s taxation proposals are set out in the Budget, and these are deemed to be sufficient to meet the country’s present requirements.

Replying to Mr Field, Mr Forbes stated that the valuations of country lands are being revised by a staff of experienced valuers, assisted by capable local valuers, who have had practical farming experience. This work is being pushed on as rapidly as circumstances permit and districts are selected for revision in their relative order of urgency. During the past three years, Department has revalued 47 counties, 20 boroughs and 12 town districts, involving no less than 154,039 assessments. Mr. Field was also informed by Mr. Forbes that very serious consideration is being given to the question of how to deal most effectively with noxious weed control. Departmental officers are active in their endeavours to get noxious' weed properly dealt with on lands newly infested, or lands where clearing of weeds is within the financial capability of settlers. Other badly infested lands are being dealt with in the best way possible in the circumstances. The question whether a satisfactory form of local control could be established is being explored, but it is doubtful whether further legislation regarding noxious weeds can be brought down during the present session.

BUDGET DEBATE. Further contributions to the Budget debate were made in the House tonight. Mr Chapman said while he agreed that much of the criticism levelled at the late Government was justified, he was prepared to admit the Reform Party had some accomplishments to its credit, notably in regard to the Public Trust Office, state advances, health and education. He wanted to see the promises made by the United IParty redeemed. Full use was not being made of the wonderful productivity of the country, for while there was great individual wealth there was much unemployment and suffering. The cry of “back to the land” was not going to solve the present problems, which would not be settled satisfactorily until there had been a thorough reorganisation of industry. Mr Chapman welcomed the land tax proposals, as they meant men who had been escaping just taxation for years would have to pay. He regretted that no provision was made in the budget for pensions and the restoration of civil .service cuts. He described the primage duty as the most distasteful way of raising revenue, and said it was a very expensive way so far as the taxpayers were concerned. Mr Dickie condoned the immigration policy of the late Government declaring it had been necessary to repair war wastage and he regretted it had been necessary to curtail it. A mistake had been made in increasing the wages of relief workers, as there was now no inducement for men to seek work elsewhere. There was no need for increased taxation although he would have liked to see the duty on spirits increased. The farmers would be paying more than their fair share of the primage duty, which he estimated would bring in £500,000 per annum. It was an amazing thing the people had swallowed all that had been said about cheap money. Al-, though he agreed the Government was deserving of credit in regard to State Advances, it was a fact, however, that all the money had been found for the workers, while settlers had not benefited. Mr Dickie defended the past Government’s land policy and said that every returned soldier had received a fair deal, even at. a sacrifice on the part of the Government. The farmers in his district were vitally affected by the mortgage exemption proposal, and he denied that meetings of farmers' had been fomented by the Reform Barty. Never in the history of the country had farmers been so disturbed. The new taxation proposals would mean there would be less employment in the country. A suggestion that farmers were manipulating their mortgages in order to escape land tax was unfair and absurd. The proposals would inflict the worst blow that had ever been dealt to land values, and the result would be to deprive every small farmer of his equity. He expressed the hope that the present mortgage exemption would be allowed to stand. He would prefer to see a general increase all round in taxation, as it was unfair to tax a man on his debts.

Mr Hogan said the Budget was good, and was necessary to. repair the damage done by the Reform Party with its immigration policy and policy of driving people off the land. ' A campaign was being waged against the taxation proposals purely for party reasons. Seeing there was a deficit, surely it was only reasonable that

steps should be taken to make it up especially as people -were demanding increases in public services. He commended the Prime Minister for providing more money for farmers, and said Sir J.‘ Ward was carrying out his promise in regard to the provision of an instalment of 70. millions. Dealing with railway matters, Mr Hogan said that fares were too high, and should be reduced, if the railways were to compete successfully against motor traffic. There would be no great increase in the cost of living as the result of the primage duty. He supported the higher land taxation and said the Budget proposals would burst up the big estates.