PARLIAMENTARY NEWS

Hawera Star, Volume XLVI, 2 July 1927, Page 5

PARLIAMENTARY NEWS

FARMERS’ TAXATION. MINISTER, ON LOCAL RATES ■ A TERRIBLE BURDEN.., MY TELEGRAPH —SPECIAL TO THE STAR.' • : UILIINIION, J uly 4. there are over So,gOO tanner®, on tile Dominion s rural iantis ami according to the Alinister or L.u .tie lTon. A. D. AlcD. AlcLeod, over 50,000 of thempav neither land nor income tax, owing to the exemption provisions by Parliament on se.veral occasions. "Then At is not taxation which is killing the fanner?” queried Air. Parry (Auckland Central). The Alinister replied that lie admitted that taxation, could have its effect. and local taxation was seriously burdening the farmer, possibly through carelessness in the first place, plus prosperity. They had not voiced their protest at the ballot box when loans were carried, so that loan after loan was raised and local taxation had become a terrible burden in many districts. amounting almost to a rent. He had taken out a comparison when in New South Wales, where he found that the settlers would pay, including Federal and State tax, £9 in taxation, while similar settler® in New Zealand would be tree. These settlers were liable to land tax and income tax. Air. McLeod added that he could fairly claim on behalf of his party that they had tried to. shift pa.rt of the load off the country settlers' and the lending of money at low rates of interest which the general community helped to carry, was one way of helping the farmer® through their difficulties.

POLITICAL INFLUENCE.

POWER OF STATE BORROWERS

With 515 Stabe mortgagors to every constitutency m New Zealand, • Air. W. A. Veitch (Wanganui) affected much concern in the House to-day over possible political consequences of such' a body, especially -when reinforced with their wives and dependents. What could they mot do if organised ? he asked, and he invited members to picture their enormous voting power if they exercised it for their own interest. “They could demand from; candidates almost any concession and get it.” The speaker’® point wa® •being made against any development of rural banking by the State Advances Department, because lie believed farmers’ finance would 'be more effectively managed by agricultural banks, having a certain amount of backing from the State. The Rural Advances Department was one of the dangers o.F the Reform Party’s Socialism (laughter). The Alinister of Agriculture: “Don’t you believe in State Advances?” Air. Veitch : “The honorary gentlemen may make that statement on hi® own account, but he is not entitled to make- it on mine. I am not in favour of any huge State Department, which may mean more patronage for Alinisters.” He invited the Alinister of Finance to explain whether it was a fact that he intended to divert all the funds of the State advances Department into the Rural Advances branch.