LAND TAXATION

Greymouth Evening Star, 26 October 1929, Page 7

LAND TAXATION

HOUSE PASSES BILL LABOUR “RAIL-SITTERS" (Special to “Star.”) WELLINGTON, October 25. The greater part of to-day’s sitting of the House was diverted to the third reading of the Land and Income Tax Amendment Bill. The Hon. J. G. Coates (Leader ot the Opposition) said that the Bill was a retrograde step, and its effects would be evident before long. The measure ignored the principle of ability to payEach proposal made by the Opposition with a view to making the operation of the Bill more just and equitable had been ignored by the House. The Government would have to take full responsibility for its legislation. The Opposition iiad don© its best, and was prepared to continue the fight in the farmers’ interest. He predicted that before long Parliament would be, cogitating as to the best way to reduce the farmers’ costs, instead of increasing them, as was now being done. The farmer was being called on to pay for increased cost of government. Mr H. E. Holland (Labour Leader) agreed that taxation should be based on ability to pay, but Reform had never followed that principle. The fact was that the Reform fight had been waged on behalf of a handful of the wealthiest land owners of the Dominion. Mr Coates had said that his party would fight to the last ditch, but on the previous night they had had the spectacle of him throwing up his hands and shouting “Kamerad!” It was a complete surrender. Only very minor concessions had been gained in the Bill. Mr Holland alleged that the Reform Party had not been sincere in its opposition to the Bill. Why had it not put into effect all it had been advocating during the progress of the Bill while it was in office? The Leader of the Opposition had to answer to the electors for holding up the business of the house for three days. Mr Wilkinson maintained that the Bill would strike a heavy blow at the farming community. “The present political position,” he said, “is entirely unsatisfactory. The Labour Party is actually governing the country without the responsibility, and that is not in the best interests of the country. I want a Government that will carry out the business of the country. The present position lends itself to bargaining, and that is not good.” Mr Stewart declared that Labour had voted against the principles for which it professed to stand Mr Holland had admitted that there were weaknesses in the Bill, but not one move had been made by him to amend it. He could only jeer at the only party which had endeavoured to improve tho measure, and which had gained substantial concessions as a result of its attitude. Labour had cut a sorry figure throughout the whole discussion. Mr Polson said he felt that the die had been cast for good or evil. The Bill would deplete land values, which would affect every farmer disastrously. “The best pack of rail-sitters I have seen in the House,” was the term applied to the Labour Party. Interjections became so frequent at this stage that Mr Speaker threatened to name the offenders.

Replying to the discussion, the Hon. G. W. Forbes said that the Government did not desire to cause any difficulty to the ordinary farmer in the matter of taxation, but to make his lot as light as possible. Out of 80,000 farmers in the country, only 25,000 would be taxed, and the total amount of taxation derived under the Bill would be £600,000. The Bill called on those occupying larger holdings of £14,000 and upwards to contribute the equivalent of £290,000. The hardship tribunal -would consider any cases submitted to it.' Those who called out the loudest in regard to the taxation proposals were the least hurt. It was essential to the Government to see that its finances were kept on a sound and proper basis, and the Prime Minister had to see that the financial reputation of the country was not lowered. He thought the Government had faced the position boldly. The Bill was read a third time by 43 votes to 25, and was passed. The Land and Income Tax Annual Bill was then put through rapidly, although the Opposition challenged the clause providing for a special land tax, being defeated by 41 votes to 23. The House adjourned till Tuesday.

LONDON PRESS COMMENT.

LONDON, October 24.

“The Times” reviews the New Zealand Land Tax Measure. It points out that, with the best will in the world, exemptions and special considerations cannot bo allowed to encroach far without depriving the proposals of most of their value. The paper expresses the opinion that there is little question as to the soundness of Sir Joseph Ward’s call for increased taxation to meet the deficit.

There must be taxation, says “The Times” to balance the expenditure if the borrowing is to be kept within the narrowest limits, and this state of industry at present leaves the Government few alternative sources.