GENERAL ASSEMBLY.

New Zealand Herald, Volume XVI, Issue 5634, 6 December 1879, Page 5

GENERAL ASSEMBLY.

(PER "HERALD" SPECIAL WIRE.) [PRESS ASSOCIATION.] 2 LEGISLATIVE COUNCIL, j Friday. s In- the Council to-day, after the customary ; routine business, Mr. Whitakkr promised to produce a 1 general Harbour Amendment Bill; and 1 Captain Frazer gave notice to move, "That no mora local bills be taken up this session." It was agreed, on Mr. "Whitaker s motion, " That the Council meet ou Monday." Mr. Manteli/s motion, " That Sir Julius Vogel was justified in believing he had the approval of the Government to join the Land Company/' was shelved by the previous question, on the motion of Mr. WatkrllOtTSE. After a short debate, in which there was some heated political argument between Sir F. Bell and Colonel Whitmore, Mr. Wilson* moved, "That, in the opinion of this Council, the bankruptcy law requires amendment." There was an important debate on that, in which many valuable suggestions were made by different members. Mr. Whitaker said the law was bad, because founded on the basis that the creditors should have the dealing with the estates, whereas it should be in the hands of independent parties. He would not promise to bring in a bill next session, though strongly urged, but would be glad to do so if he saw any chance to carry a measure in accordance with his views. Mr. Wilson notified moving for a committee next session to inquire into the wbole subject. Mr.WATKRnousE carried a motion, "That the police should be instructed stringently to enforce the Adulteration Act." The Council went into committee the second time on the Registration Bill, and had not finished on the adjourning of the Council at 5 o'clock. The Council resumed at 7.30. The Legislation Bill was finished i~ committee. The Aucklanl Loans Consolidation Bill was also passed through committee. The Public Entertainments Bill, Marlborough River Districts Union B II passed tho second ri-ad ing. Th»' Imbecile Passenger Ant Extension Bill, the Electric Act Amendment Bdl, the Onehunga Waterworks Reserves Bill were read a third time. The Council ro3e at 9.5. HOUSE OF REPRESENTATIVES. Fill ('AY. The House met at 2.30 p.m. PRESS TELEGRAMS. A select committee appointed to ii.quire into tho question of what facilities can be given by the Government for the use of the telegraph by the public Press reported as follows :— " 1. That arrangements having been made for the amalgamation of the two companies, by which special wires could be leased from the Government, the committee r-c >mmcndcd that every facility >ho ild be offered by the Government for carrying out such an amalgamation without delay ; that until the expiration or other determination of the contract now in force, it in unnecessary to make any recommendation on the snhjcct of the facili'i s afforded to moininp papr-re. 2 "That evening papers should be allowed 1000 words during the day at present rates, and 100 words to take prece lenceof all messages, except urgent messages, between half-past oae and half-past two o'clock. 3 " That has it has bcea suggested in cvid- nee that it would be desirable to provide a wire specially for the use of the Press night and day, the representatives of the various morning and evening papers in the c dony be invited to unite in making proposals which wou'd warrant tho department in making such a wire." TIIE CROZETS. Mr. Hall announced that, in reply to a question put the other day iutimation had be n received from England that the steamer Comus was about leaving for China, and would call en route at fcbe Crozet Islauds. It was desired to know if the Government* would erect a refuge station on the island*. Mr. Hall added that the Government did not feel called upon to contribute towards the ercetion of such a station. POST AND MONEY" ORDER OFFICES. I Replying to Mr. Hamlin, I Mr. Ha'l said the Government did not con- ! sider it necessary to op»na te'egraph, m~ney order, and post office, at Papikiua, or a money order, p: st, and telegraph office at Bombay settlement. WOOOSIDE post-office. Replying to Major Harris, j Mr. Hall said the Government did not con-idcr it necessary to comply with the request contained iu the petition presented some time s'nee praying that the post-olfice be reopened at Woodiide in tlu provincial district of Auckland. THE RESIDENT MAGISTRATE AT LYTTELTON'. Mr. Allwrigiit asked " When the Government intend to appoint a resident magis trate for Lyttelton Mr. Rollkston said the present resident magistrate had been located elsewhere in conseqoeuce of a neighbouring magistrate having been called away to do duty in Poverty Bay. The magistrate however, wou'd shortly l>e ordered to return, and tike up his residence at Lyttelton. INVIDIOUS DISTINCTION'S. Mr.Tolkasked thcGuvrrnmeut "If ic will put on the Supplementary Estimates a r»uflieiont snin to place the payment of the cfli ern of the Auckland Lunatic Asylum, and other appropriation for the maintenance of that institution, on equal footing to that of other similar institutions of the colony." Mr. Hall repli d in the nega'ive. The intention o : * the Government was to bring about an equalisation by reducing tho f-ali-lies paid in the other institutions referred to. V iiRFoT CONS K1: VAT lON. Mr. Wakefikld a i ked the Government, " Wheth' r they will during th > r».*' a es3, eau*e inquiries t'j be made a» t > th- possibil ty of introducing New Zealand timb-is into the European markets; aud whether they will briny in a measure next session for the conservation of forests, and the systematical disposal of timber as a uonrc? of public revenue." Mr. Hall replied, that the Government would cause inquiries to he made on the subject. The wonld consider the question of protecting the forests, but judging from experience, tbey were not by any m n ans sanguine of the result. PROPOSED INTERNATIONAL EXHIBITION. Mr. Levin asked tho Government, " Whether they will place a sum (£500) oil the Supplementary Estimates a3 a preliminary giant towards an exhibition of the production* of all nation*, to be he!d at Wellington, after tho Melbourne Kxhibitioo of ISSO, and on condition that a similar sum be raised by the people of New Zealand ?" Mr. Hall replied that whatever the opinions of the Government might be, in the pre.-enf. financial ata'e of the colony they wou'd not be justified in increasing the responsibility proposed. PROPERTY TAX. On the motion forgoing into committee on the Property Assessment Bil', Mr. Macandkew said tho measure was o:ie which be locked ou as being utterly undes raMc, and thosa on his side of ihe House would follow his advice. They would h ivo no'hiug to do with it. They would act on th*; principle of " touch not, taste no*, and handle not." Mr. Gkokue said that he would at every stngi vote agiinstthe measure. He went over the Estimate*, t.i prove that sufficient reductions could have boeii made to meet the exigencies of the colony. Mr. Barron spoke iu a similar strain. Mr. Kelyk* suid the bill was simply a blind ho as to get tho Land 'Tax Bill removed from the statute bo>k. Had the Government been honestly desirous of raising the revenue by taxation, the tax on the land ought to have been increased. A beer tax might be imposed, and on that alone a revenue of £100,000 could have bc -n raised. That would have b' cn a voluntary tax, as no man need "put himself outside a pint of beer" unlc e s lie liked. Mr. ypKiuirr said it was quite obvious that the Government ncv.r intended to bring the incisure into force. Tht-y were told that all round the lobbies. Members had been virtually coerced into vrting for the sccond j ending by the doleful aspect of | affairs presented by the Treasurer, and the speech delivered by the Treasurer on the ; second reading proved conclusively tnafe the 1 measure could not possibly be brought into operation before Parliament again came into session. Mr. Swanson did not think the Government had hit upon a wise proposal for getting money, but still money had to be got. While he did not like the bill, still he did not see his way to oppose it. His object was to record his opinion that the measure was not a sham ; on the contrary, it was to his mind a moat disagreeable reality, and ib was their bounden duty to treat it as such.

Mr. Reader Wood said the deficit was £600,000, and the Treasurer told them there was no other way of meeting the deficit than by placing it on the loan. If they went away without making some arrangement to meet that deficit this year, then the difficulty next year would be all the more serious than it was now. One side of the House might differ from another as to the me-hod employed ; but still there was no diversity of opinion that money should be raised. Everyone felt the imposition of the tax was a serious matter, but it wa? a thing they were bound to facp. There was no tax at present : unfairly on the community. In this case the tar would have been unhappily on the mining companies. The Alosgiel woolleu factory, for example, paid on the dividends on a large capi f al invested. There were many other concerns in exactly the same position, and it was their duty to lay their heads together and see if no plan could be devised of relieving the affairs of theec concerns from the operation of the tax. Tbey had been told that the Es'imates should be reduced; but ho reminded them that the efforts already made in that direction had failed. If the imposition of the tax has no other effect he believed it would have this effect: it would rouse public indignation to a point, aud members would be actually compelled to cons nt to a reduction of expenditure. By making the tax instead of Id as proposed, they would have £237,000. Mr. Seddon proteste 1 against the imposition of the tax as being moat unfair to the community he represented. The debate was iuterrupted by the 5.30 p.m. adjournment. The roufe resumed at 7 30 p.m. The debate on the motion to go into committee on the Property Assessment Bill was resumed by Mr. Seddov. He argued that, despite the late period of the session, it was necessary that the bill be taken back, and an Income Tax Bill be substituted. Mr. Moss said that, with tho machinery in his hand, the Treasurer under the land tax was in a position to raise £400,000. What he estimated under the property tax was £470,000. Why not put the former into operation 1 The property tax could not be brought into opeiation until Angus'*. He d'.sired an explanation on the poiut. It appeared to him that the property tax, for reveuue purposes, was altogether superiluOUS.

George Grf.y said he felt so adverse to the measure, that he would offer resistance at every stage. As a piece of taxation. it aimed at everything that produced wealth. Fiist of all, it aimtd at man, the highest of Nature's machines. Under thia system that midline would be ground down. A man not doing well would be ground down still lo.\er. In New Zealand tlu*y had lvndhobL rs were the land countpd nothing at all to them, and yet their cattle an l produce would be taxed. Industries, which were expected in after time to yield a profit, would be crushed. In every way it appeared to be a mosc disastrous tax. Its effect would be to cause the property of the poo-er classes to fall int.) hands more fortunate in worldly.circumatauces. They were told the object was to raise a few thousand pounds. That money was not wanted this year. The land tax, which was thought highly of elsewhere was to be abolished. Why was that? The effect of machinery being taxed would make men he itate to iuvtst in machinery, and that would be most disastrous to the industrial classes. The laud tjx yields £10'),000 per auuum, aud that was thrown away. An income tax would overtake the public creditor in Great Britiiu. He was tixed in England, and why should they allow his escape when Great Britain aud all foreign States recognised the piiuciple ? Tilers were gentlemen who drew large poisious from the colony They went to England, nnd weie tuXi.d iu England. Why was it that they should not contribute to the fuuds of the place from whence tluy derived their pensions? The same with psrcons who derived large iucomes from the c;lony, aud resided at home. Dealing with such gross injustices as these, he felt as if he were iu a nightmare. Surely this state of things was not real. He was told the measure was not to be putin force. Why then alarm the country? There was not a day he did not get letters informing him that the inhabitants were determined not to remain under such a system of taxation. Let Government bring down a real measure, an income tax, in which they would tax according to means and not grind down the *ered classes. The previous speaker had shown how it would operate upon the miner. They were told that companies formed for that purpose, developing a district, would be compelled to give iu. That was a state of things which would be mo?t disastrous to the future of the colony, lie hoped they would pause and substiiute a measure so that the burden would be fairly and equitably distributed. He would simply enter his protest against the measure which he conceived to quite unfitted to the country and which would entail ruin and misery ou the colon)'. While it was in the favour of the colony to retrace this false step aud substitute an income tax be conjured them to do it. A measure of that kin 1 would be sufficient to meet the emergency of thecase and sustain the credit of the colony in the money market. Dr. Wallis had come to the conclusion that it was an unjust and one-sided measure. Tho tax proposed wa* equivalent to the im position iii England with its population of £45,000,000 of money per annum. Such a thing would never be tolerated by a civilised people Mr. McLean said he agreed wi.h the Opposition that the measure was a bitter pill to swallow. It was forced upon them by the maladministration of the late Government. He drew a clos3 comparison between this and the land tax, and pro nounced iu favour of the former. The mem ber for llokitika bad to'd them that only three men on the West Coast contribute 1 uud r the 'and tax. That itself went to prove that it was most unfair in its operation. The present financial difficulties he attributed to the late Government, reminding the member for Wanganui that a year j go, when d« livering a statement as Colonial Treasurer, be painted the prosperous state of the affairs iu glowing language and actually went the length of attempting to reduce taxation.

Mr. Hall agreed that what c uld be done in the way of retrenchment should be done. It was out of the questiou however, thinking about striking out one sum after another indiscriminately. It was a thing requiring to be handled very carefully, and by mm who knew somethiug about it. He could assure them that what could be done in that way, the Government was anxious to do it. They did not profess to say they were ready to do that in the short time they had been in office. 'After all the deductions that could posMbly be made in that direction, a lirge deficit would still remain to be made good by taxation. The measure proposed was one which would bear fairly on all classes of the community. Tho statemeut that it would press unfairly in this direction and that direction, were all point*, true perhaps iu themselves, but which might fairly be considered iu committee. Had they brought iu a beer bill, the cry would have been raised about robbing the poor inau of his be. r. Had they proposed ail income tax, they would have been taunted with robbing tho poor professional man, and hardworked civil servauts. In committee the Government would be quite prepared to consider any reasonable proposal made in a friendly spirit. He believed that whatever they put on under this tax, and which was shown to be necessary, would be cheerfully paid. If they found that the proposed arnouut could bo reduced they would be very glad to do so, but the public credit would have to be maintained. Mr. Montgomery reviewed tho measure, and pointed out its objectionable features. Colonel Trimble spoke in favour of the principles of the bill. What they had now to do was to perfect the machinery fur enabling them to meet tho public creditor. The}' bad already asserted the principle that his claims would require to be met. Yot> s they had passed aud promises made day after day since Parliament met. All went towards establishing that principle, aud what the bill aimed at was to perfect the machinery necessary for giving effect to that purpose. • Mr. J. B. FisriEK spoke in opposition to the bill. He had listened to the arguments for and against tho bill, and, to his m:nd f the latter was overwhelming. The Government failed in showing it was uecessiry for such being the case. Ho would oppose it. Major Atkinson replied that he could not conceive how it should be stated that they did not require the taxation proposed. No authority on tho subject of finance had i seriously impugned the correctness of his ' Estimates. No one, with the exception of a i few speakers on tho Governmant side of the House, had seriously addressed themselves to the true spirit of the bill. After weighing all the circumstances of the colony, ho contended that a property tax was preferable I to an income tax. The bill before the House I was no sham, and the Government intended |

to bring it into operation at occe. An amendment was advanced by the Opposition, the obvious purpose of damaging the Go vernment. They would accept reasonable proposals, but they would not, a=* the late Government had done, submit to au unreasonable and mere factious amendment. The proposition made by the member for the Thames about levying an income tax upon New Zealand bondholders at home was a most ab-surl one, and one which would effectually affect the colonial loans in the home country. lie could hardly believe that the proposition was made in earnest. The proposal about imposing such a tax ou the absentees was equally untenable. By applying themselves seriously to the bill, he believed they would succeed in producing a by no means unpopular measure. On the question of going into Committee, the House divided. Aye?, 35 ; noes, 25. The House then went into Committee, and wa3 left sitting at 12.30 a.m.