PARLIAMENT.

Hawera Star, Volume XLV, 10 September 1925, Page 6

PARLIAMENT.

LEGISLATIVE COUNCIL

CUY TELEGKAPII CHESS ASSOCIATION . ) WELLINGTON, Sep. 9. The Legislative Council met at 2.30 p.m. The Marine and Power Engineers’ Institute Ineorportion Bill was reported with a minor amendment. In committee on the Weights and Measures Bill, on the motion of the Hon. Sir Francis Bell, an amendment was effected postponing the operation of the Bill from July 1, 1926, until January 1, 1927. Sir Francis Bell said this alteration was deemed: necessary in order to give an opportunity for those who feared some of the provisions of the Bill to bring the matter up again next session if they could, prove that injury was being done. It was also desirable to make a postponement because certain traders had already ordered and were receiving goods which were not in accordance with the provisions of the Bill. Sir .Francis submitted that no injury could possibly lie done by making the postponement. The provision in the Bill that the metric system of weights and measures be the only system recognised in New Zealand was modified by deleting the words “the only’’ and substituting the indefinite article. The phrase prescribing that it should not bo lawful to use any weights and measures other than those described in the schedule was deleted; Another clause requiring trade machines to be wholly exposed to a customer was also struck out. and a new clause was inserted providing that the sale of charcoal, coke or coal by weight instead of measure shall not apply where such substances are used in ships. The Bill was passed as amended. The Land for Settlements Bill was referred to the Statutes Revision Committee. The Electric Power Boards Bill was put through its final stages and passed tin a mended. The Land and Income Tax Amendment Bill was also passed without alteration.

The Council adjourned at 3.25 p.m. until 2.30 p.m. to-morrow. HOUSE OF REPRESENTATIVES. TAXING PROPOSALS. WELLINGTON, Sept. 9. The House of Representatives met at 2.30 p.m. to-day. Replying to Mr. TV. E. Parry (Auck_ land Central), .the Prime Minister said there was a Bill at present on the order paper dealing with the qualification of dentists. The question as to what was to be done in the event of that Bill not passing was now being considered by Cabinet. On the motion of the Hon. R. F. Bollard, the Lights on Vehicles Amendment Bill was introduced and read a first time. The Hon. Sir James Parr laid on the table the report of the Royal Commission on university education, the discussion on which he suggested should be taken at a later date.. This course was agreed to. The chairman of the Public Accounts Committee reported that tlio committee had considered the Land and Income Tax (annual) Bill and recommended that the Bill be allowed to pass '

Mr. J. McCombs (Lyttelton) said that so far as the committee could ascertain the reductions proposed amo.mitcd to about £150,001), the gieater part of which would go to “big” men. Up to incomes of £B7OO the reductions were based on a graduated scale, but after that reductions were ladled out on tli e highest incomes wholesale. The remissions on smaller incomes were falling, but on big incomes they wer e enormous. The Prime Minister (Hon. J. G. Coates) said he had already given Mr. McCombs an undertaking that the Government would reconsider the suggestion that graduation should continue on incomes from £8750 up to £10,003. His whole speech was a distortion of facts. He had used an election cry that the Government had robbed the workers of bread and butter and other things, but Labour mem. bers had bee n using that cry for the past three . years and would no doubt go on using it. There was no analogy between a reduction in taxation and what happened to the public servants—they were entirely different questions. Many of those who would get the benefit of the reduction were not individual ratepayers, but were companies, and they had to reduce tire taxation' on companies to enable productive industry to go on. Further, the Bill sought to equalise the rate of taxation between money lent to farmers and to local bodies Formerly local bodies were obtaining preference, and while this readjustment was not a. big one it at least put both classes of' borrowers on an equal footing. The Government was anxious to relieve industry from taxation. They were also prepared to give -any phase of the question •c aref u 1 consi dora.’tion -

Mr. *T Iv. Sidev (Dunedin South) said the Government had set up a taxation commission, but had not adopted the commission’s recommendations. The commission had ’recommended abolition of the graduated land tax, but the Government had not attempted to give effect to that recommendation. The Leader of the Labour Party (Mr. IT. E. Holland) said that during the past three years the Government had made income tax remissions amounting to £5,364,032, which might be considered a good record if you looked at it from the point of view of fihoee who received jthe iremissions, but not otherwise. Taking official statistics, he declared that in 1922 remissions amounted to £764,386. Gf this amount 165 taxpayers out .of 33,000 taxpayers in the Dominion received remissions amounting to 9'-27,658, while the other half of the remissions was divided amongst all other taxpayers. In 1924 remissions amounted to £1,590,766. Of the 36,000 taxpayers 210 received remissions totalling £1.162,821, or 61.' per cent, of the whole remissions. In 1925 remissions amounted to £2,708,880, and if the revenue for 1926 maintained smelling like the same ratio the reductions that year would amount to about £3,000,000. While these reductions wore made he contended that wages were reduced. Mr. J. O’Brien (Westland) moved that the report be referred back to the committee for further consideration . This was seconded by Mr. Parry. A long debate followed, Labour members opposing the Bill. The discussion was still in progress when the telegraph office closed. After the, telegraph office closed at 2 a.m., the debate was continued on. the question that the House go into

committee on the Land and ’lncome Tax Bill. Mr. Mcllvride urged that there were many useful purposes to which the money could, be devoted, which the Government proposed to hand hack to their wealthy friends. At 2.15 a.in. Mr. Fraser moved a further amendment that the Bill ho referred back to the Government with a recommendation: that there he no reduction, jn income tax. This was seconded by Mr. McKeeu, who characterised the Bill as a piece of window dressing, in view of the coming election. Mr. Eangstoiie maintained that the wealthy people were going to get concessions given them in “great lug chunks,” but these concessions would not be passed on to the community until every penny of our war debt was paid. No one had the slightest right to expect a reduction in taxation. Mr. O’Brien declared that it was futile to argue that relief to companies meant increased wages. In four Years concessions amounting to £•3,500,000 have been made to companies, but who had heard about any of them raising the workers’ wages. At 5.15 a.m. Mr. Fraser’s amendment was defeated by 41 to 16, and the House wont into committee, at which stage Labour members did not abate their desire to discuss _the Bill in meticulous detail until 5.50 a-m., when the short title was passed, the remaining clauses quickly passing unqostioned „ r TT •, On the third reading, Mr. Holland stated that the Labour Party had iought the Bill because it contained a wrong principle and they wished to draw" the public’s attention to this sort of class legislation. The Hon. Mr. Nos worthy said that they had tried to look at the . question •of a. reduction, of taxation fairly, and had done it in. such a way as to do justice all round. All tlie talk they 'heard about Infaking concessions to rich friends was absolutely unjust, hut on that point he would leave judgment to tlie country. ‘ The Bill was then read a, third time and passed. The House rose at 6.10 a.m. until 9 30 o’clock this afternoon.