HOUSE OF REPRESENTATIVES

Lyttelton Times, Volume CXVII, Issue 17200, 21 June 1916, Page 8

HOUSE OF REPRESENTATIVES

Tuesday, June 20.

AFTERNOON SITTING The Houso met at 2.30 p.m. IMPREST SUPPLY.

An Imprest Supply Bill for £951,800 was passed through all its stages.

LAND FOR SOLDIERS. An amendment to the Discharged Soldiers' Settlement Act Amendment Bill was introduced by Governor's message. The amendment empowers tho Government to expend £IOO,OOO in assisting soldiers on to the land, instead of £50,000 as provided in the Bill. Tho House then went into committee on the Bill to reconsider an amendment moved at the previous sitting by Mr Payne to eliminate the provision to exempt debentures issued under the Act from income tax.

The Prime Minister said that since the House last met ho had discussed Section 7 with the Minister of Financo and they came to the conclusion that the clause was not necessary. Tf necessity for the provision arose Inter the clauso could be reinstated. Ho, therefore, moved.to strike the clause out altogether. Mr Payno said that meant that tho Government would havo an absolutely free hand to do as it pleased. Sir Joseph "Ward said that there must bo flexibility, bub no one should suppose that any Government was going to issue debentures at 5 per cent free of income tax if it could avoid it. No ono could tell what the rate of interest was going to ho after tho war was over, atid if anything was put into tho Bill that would tie the hands of the Government in purchasing land for soldiers then the penalty was going to bo paid by tho soldiers. No Government had paid moro than i\ per cent and the bulk of it had been raised at 4 per cent, and the Government should havo power to make the best bnrgain it could. Air M'Combs said that the Minister of Finance had no right to suggest that Mr Payne's amendment was tying the hands of the Government. All they were protesting against was tho unfair concession to land owners. The Prime Minister protested that there was no unfair concession to anyone. The intention was to issue short dated debentures of three or five years' currency. Mr Poole and Mr Harris favoured the amendment. They thought it unwise to cut out the power given in tho Bill to issue debentures, as some day it might hamper the Government in purchasing land for settler soldiers. Dr Newman hoped the Government would not adopt the practice of letting any one off income tax. Tt was better to borrow and pay a higher -.rate of interest-. Messrs M'Combs, Webb and Wailker maintained support of the amendment till 4.15, when a division was taken. The amendment was lost by 37 to 9. The discussion then proceeded on the question that Section 7 should stand part of the Bil" The Prime Minister announced that he desired to strike the section out. The section was struck out. The Prime Minister then moved a new section to increase the sum appropriated for assisting soldiers on to the land from £50,000 to £IOO,OOO. Agreed to. A new section moved by the Hon D. Buddo, providing for applications for land being made on behalf of soldiers bv agents, was not agreed to. The Prime Minister moved a new clause providing for tho limitation of areas in the neighbourhood of cities, as follows :--In case of land situated moro than five miles from the cities of Auckland, Wellington, Christchurch, Dunedin.fa) ono hundred acres of firstclass land' or (b) two hundred and fifty acres of second-class land, or (c) six hundred and twenty-five acres of thirdclass land, or (d) six hundred and twenty-five acres of two or more such classes of land, but without exceeding tho limit of area fixed for each class. In case of land situated not more than five miles from any of tho cities aforesaid the Minister may reduce the prescribed maximum to fifty acres. Tho Bill, with amendments, was thon reported from committee. The Prime Minister sand that in view of the Financial debate commencing at 7.30 he did not propose going on with other business. The Houso rose at 4.45 p.m. EVENING SITTING. The House resumed at 7.30 p.m. THE ESTIMATES, The House went into Committee of Supply on the Estimates. After the first item was passed progress was reported and tho House rose. '