SENSATION IN THE HOUSE

Northern Advocate, 22 August 1929, Page 5

SENSATION IN THE HOUSE

(3) That if any change is to be made jn the taxation of that, class of farmers contemplated by the Budget, it should be based on the principle of capacity to pay,/ viz: income tax, with ‘ adequate provision for preventing aggregation, (4) Experience has shown that a proper classification of lands suitable for subdivision is essential before a penal taxation is imposed.

(5) That the. proposals as to highway revenue are a breach of faith with the motorists of Now Zealand, who agreed to the imposition of special taxation on the condition that no part of ithis taxation was to be available for the general purposes of the Consolidated Fund.

Mr Coates said he felt the proposals of the Budget did not represent the best method of dealing with the situation. Indeed, extra taxation was not necessary to meet the deficit which occurred last year. “I am moving this amendment/’ he said, “for (the purpose of a record against the taxation proposals of the Government . I have noticed that in certain papers in New Zealand, it has been suggested that opposition to the proposals has been a cute move to try to inveigle the Labour Party to vote with ns. May I say that that is not our concern at all. Personally, 1 think the. Labour Party will vote with the Government. On the other hand, it may be that the Labour Party may be bound to vote againsto the Government,

FATE OF THE GOVERNMENT HANGS IN TiHE BALANCE. HOW WILL LABOUR VOTE?

“In -our opinion the primage duty is not justified as it will add to the cost of Jiving of every individual in the country. Some honourable gentlemen have gone to pains to show that it . will not be passed on, bat as a matter of fact primage duty and all taxation is passed -on,” Mr W. E, Barnard (Napier); “Except income tax.” Mr Coates; “Well, direct taxation. So far as iland l tax is concerned, that is going to affect every farmer of the country on account of depreciated values, which must automatically follow such an impost.”

The method they had suggested was a. lower classification pf land, in order that it might be discovered which lands were most suitable for settlement. If it was necessary to tax the so-called “wool kings” they should be given advantages of income tax. It might .be said that his Govern' ment had been responsible for relieving them of taxation, but it had to be remembered that it was during a slump and the man on the land had had to be given some incentive to

carry on. The Prime Minister rose immediately and declared that the amendment could only be accepted in one wmy by .him, on behalf of the Government,! and that was -as a vote of want-of-confidence. “I ■wish to announce,” -said Sir Joseph Ward, “that that is the deei-j sion I have arrived at and which I will take up. Until it is disposed of, I have not the opportunity of replying to the speech of the Loader of the Opposition, but I - can. say that for misrepresentation upon material points <” Here Mr Speaker called the Prime Minister to order, amidst laughter, pointing -out that he must speak on the amendment.

‘‘Well, sir,” said Sir Joseph, “I will withhold any observations I may have on that subject until this motion is disposed of.”

He said Mr. Coates had knownbefore the Reform caucus that afternoon had agreed to the submission of the. amendment —that it would be accepted as a motion iof want-of-con-fidence. Mr Coates: “That is so.”

Sir Joseph Ward; “I hope mom- | bers of the House understand that too. It only remains for me to suggest an adjournment of the House.”

Mr Coates: "Why 1 ? Will the right honourable gentleman state the grounds for adjourning?” He added that it was not intended to bring an end to the debate.

Sir Joseph: “I assume the debate will be resumed again after this mo-

AMENDMENT TO THE BUDGET MOVED BY LEADER OF THE OPPOSITION ACCEPTED AS NO-CONFIDENCE MOTION (Prom Our Parliamentary Special.) WELLINGTON, This Day. A sensational surprise was sprung by the Leader of 'the Opposition, the Bt. Hon, J. G, Coates, in the House of Representatives last night by moving an amendment in (the Financial Debate, which the Prime Minister, Sir Joseph Ward', accepted as one of confidence. The motion of Mr Coates was as follows: In the opinion of this House the taxation proposals are not acceptable without further revision and amendment, on the grounds that: , (1) Increased primage duty will increase the cost of living' and, if further Customs revenue is absolutely required, duty should be imposed on certain selected luxuries of foreign origin. (2) That the proposed increase in the land tax amounts, iu some cases, to a' confiscatory single tax, absorbing the whole of the annual income of property without regard as to whether such property is capable of subdivision or ' not. Moreover, reduction in the mortgage exemption will impose a grave hardship on many farmers.

tion is disposed of, but in the meantimo the Government is not going to sit here when there is a want-of-eon* fldence- motion pending and allow the debate to .go on until a decision has been arrived at. I therefore wish someone would move the adjournment of the debate, and I will move the adjournment of the House. ’' The debate was thereupon adjourned on, the motion Of. Mr C. A. Wilkinson (Egmont), and the House rose at 9,4;) o’clock. ;

(From Our Parliamentary Special.) WELLINGTON, This Day, Like a flash the ,whole political situation has undergone a kaleidoscopic change as a. result of the Leader of the Opposition having moved a want-of-confidence motion, and the fate of the Government now hangs in the balance, with the Labour Party holding the key. The position now is that while the amendment is before the House, the Government will take no other business in Parliament until the vital vote is disposed, of, and the want-of-confidenee debate will continue until that stage is reached.

The first .speaker this afternoon ■will be the Prime Miniated.

A caucus of the United Party was held this morning to- consider the situation and it . was subsequently stated to be an enthusiastic gathering.

Although nothing was divulged as to the decisions reached, it as assumed that members of. the United Party will henceforth refrain from taking up much time in the debate, but that they will leave it to the Opposition to justify its action in bringing the amendment forward.

The Labour Party also met today to decide what action should be taken, and it was decided that the Leader of the Party (Mr IT. E. Holland/ . should speak this afternoon to make the Party’s attitude clear.

It is confidently believed in the lobbies that the Labour Party will vote with the Government because the amendment has been so framed, that while part of it may appeal to the Labour Party, there are other portions of it wdiich will not.

Even the Leader of the Opposition admitted when moving the amendment that he did not expect to get the Labour vote and his expectation may therefore be realised.

In any case it is believed to be possible that the Labour Party will seek to alter the amendment, and have it reconstructed in such >\ fashion that it will bo unacceptable to the Reform Party. With the aid of the United Party it would be in a position to do this.

Assuming that the Labour Party refrains from voting on the amendment the position will become more interesting still. The state of the parties in the House is:—United 28, Reform 28, Labour 19, Independent total 80. The five Independents include the .Speaker (Sir Charles Statham). Of the .remaining four, Messrs H. M. Rushwortli, C. A. Wilkinson, W. J. Poison and J. T. Hogan, it is

believed that they will all support the Government, although it is uncertain what line Mr Rushwortli will take.

Some of the Independents, say that they do not regard the amendment seriously and they view' it as an attempt by Mr Contes to . gain support in the country. Further, some of them contend that the present is not the right time to 'move, an amendment, but when the ■Government’s proposals are brought down in the Customs Amendment Bill and Land and Income Tax (Annual) Bill. Two Reform, members, Sir Maui Pomai'e and Mr C. D. Burnett are absent through illness, but it is said to be unlikely that the United Party will grant them any pairs, so that even if the Labour Party abstains from voting, the Government’s position should be safe with the ’help of the Independent members