TAXATION PROPOSALS

Hawera Star, Volume XLIX, 29 August 1929, Page 9

TAXATION PROPOSALS

DEPRECIATING LAND VALUES. EFFECT ON SMALL MAN. ‘FOBBED OF EQUITY.” Tin 1 effect the Government \s taxation proposals will have on land values and the equity of small farmers was one of the points dealt with (by Mr. H. G. Dickie (Patca) in the course of Chis Budget debate speech in the House of Representatives last night, says today’s “Dominion.” Mr. Dickie said that Ministers of the Crown had attempted to excuse the taxation proposals of the Government but had failed. He went on to refer to the fact that when Labour occupied tin' Treasury benches in England in 1924 unemployment had increased. Mr. P. Fraser (Wellington Central): Can you supply the figures?

Mr. Dickie said he did not need to' sa PPly the figures. Labour members (ironically): Oh, no!

Mr. Dickie said that the immigration policy of the Deform Party had been criticised a great deal, but the critics had overlooked the fact that in 1923 public opinion was strongly in favour of filling up the ranks of all walks of life which had been depleted as a result of the war. Now Zealand lost sixloi'ii thousand men in the Great. War, uvhile eight thousand were incapacitat<*d. It was contended in 1923 that an influx of twenty-four .thousand men was not out of the way. Mr. W. E. Parry (Auckland Con-li-.'il): You ought to set that to music. Mr. Speaker: Order! Order!

Mr. Dickie went on to s'ay that no one regretted unemployment more than In* did. IHe contended, however, that it was a mistake to increase the rate of pay to single men engaged ou relief works. Mr. R. M'eKecn (Wellington iSouth): Absolute rubbish! Mr. Parry: Undnlteratcd r.ubbish. Mr. 'Speaker: Order! Order! Mr. Dickie said lie was a ‘single man himself and had been in an unemployment camp.

“Working?” inquired a Labour member.

Mr. Dickie: No. (Labour laughter.) I can always find a job for myself. I want to pass on to the Budget Mr. E. J. Howard (Christ church iSouth): Hear, hear. You are on safer gronnd. “ BROKEN 'PROMISES. ’ ’ Mr. Dickie described the Budget las :> Budget of broken promises, and said that the primage duty would bring in more than half a million pounds a year. The Prime Minister (Right Hon. Kir •Tose.ph Ward) : Oh, •nonsense. Mr. Dickie said he was not talking nonsense. Last year had been a very poor importing year. The exfMinistor of Finance had explained that the reason for that was everybody thought spirits would be taxed, with the result that huge stocks were withdrawn from bondage. A big increase in importafibns of spirits could now be expected as the stocks were diminishing. Personally, he would not be opposed to whisky being charged for at the rate of “a shilling a nip.” Mr. A. M. Samuel (Thames): How much would it cost you? (Loud Laughter).

PRIMAGE REVENUE

Mr. Dickie said that the farmers would have to pay more than their fair share of the primage duty. Their fertilisers would cost i2s fid more than if (here were no duty at all. He repeated that the duty would produce more than half a million pounds a year.

Tho Prime Minister: Nonsense. ■Mr. Dije-kie said that the figures showed clearly that the duty has never failed to .produce less than £450,000 a year. The deficit had been trotted o!ut as a stalking-horse, Ibut everybody knew that money was going to [be ■squandered on the railways. He was apposed to the completion of the iSouth Island main trunk, and contended that it would (be a losing proposition. The people would not travel such a long, •dusty journey; they would prefer the 'boat. Mr. Dickie said he approved to the stopping of the railway at Palmerston North, and had always done so. He was sorry the work had not been stopped long ago. Do welcomed any ■movement for land settlement, but he did object to the statement of prac-j 'tie ally over United member who' hadspoken that settlement was dead under ■Reform, administration. Eigfht months’ results of the present 'Government's activities amounted to tile settlement of twenty men, two of whom had already walked off, notwithstanding that the occupiers were especially selected men. That (would icost the country money, but he was prepared to see money lost provided settlement of the right sort was developed. He denied that aggregation was taking place in his electorate. BEYOND DESCRIPTION.

Mr. Dickie 'said it was idle to suggest that his district was not interested in the proposed reduction in the mortgage exemption. If. was interested — vitally so. !< ‘Why, in regard to' these taxtion proposals,” added Mr. Dickie, “never in New Zealnd history have the men on the land been so disturbed. (Hear, hear) 1 . Not since McNab's Land Bill, when the late Mr. fSeddon had to send a commission round the country to try to placate the people, has ” “Go on, say it,” said Mr. E. J. Howard (iChristehuneh South). Mr. Dickie: “No, I won’t —the language might not (be Parliamentary.” (Laughter.) Referring Ito soldier settlement Mr. Dickie said that while money had been lost, the loss would have been greater had the United Party been in office, since, after all, they had only one farmer in ithe Cabinet. “I know that annoys the Minister of Marine,” added Mr. Dickie, “but lie knows more about silk stocking than Shorthorn cattle. Laughter). DEPRECIATING VALUES.

Proceeding, Mr. Dickie said that according to the Prime Minister 1762 landholders would .be affected by the taxation proposals. The Year Bock, however, showed that their were 1521 holders of land of an unidproved value of between £SOOO and £6000; 1125 between £6OOO and £7000; 85G between £7OOO and £8000; 017 between £BOOO and £0000; 532 between £9OOO and £10,000; and 1036 between £IO,OOO and £14,000; a total of GSSS.

The Prime Minister: My figures came from, the 'Commissioner of Taxes. Mr. Dickie: Mine are from the Year Book.

The Minister of Public Works ('Hon. E. A. Ransom): But are yon reading them in the correct sequence? Mr. Dickie: I am quoting them as they appear in the Year Book. The Minister of Public Works: You

are mixing the mortgage exemption and the super-fax. ■Mr. Dickie: I am quoting the unim- ! proved value on which the mortgage exemption is based. The 'Prime Minister: You are quite wrong, anyhow. (Laughter). Mr. Dickie: “I challenge any member of the 'Cabinet to deny it. The Budget definitely lays it down.” Mr. Dickie repudiated the suggestion that farmers manipulated their mortgages in order to evade the payment of land tax, yet that was one of the excuses given for the imposition of the new taxation, which in some .cases meant •that -the taxation would be 144 per cent. It was going to deal the worst blow that had been aimed at land values in Now Zealand. (Hear, hear). If land values wee to bo so depreciated every small farmer .in the country would be robbed of his equity . ’“Nonsense,” interposed the Prime ■Minister. , Mr. Dickie: “If you depreciate land values in Taranaki to-morrow a great many of the fanners will lose thenequity. (Hear, hear.) If there is any country in the world where it pays to give a man a chance it is New Zealand.” ;(!Hear, hear). Cheap money, in Mr. Dickie’s opinion, was not 'an unmixed blessing; it might cause another land boom. Mr. Dickie expressed the hope that when the taxation proposals came down there would bo no reduction in the mortgage exemption. When it was ;weighed up it would be found that "the farmer was paying his fair share of taxation.