BUDGET PROPOSALS.

New Zealand Herald, Volume XXVIII, Issue 8608, 2 July 1891, Page 5

BUDGET PROPOSALS.

INTERVIEW WITH THE HON. MR. STEVENS. [BY telegraph.— CORRESPONDENT.] Wellington, Wednesday. An interesting opinion regarding the Budget proposals has been given me by the Hon. E, J. C. Stevens, M.L.C., who is well known as an able financier, and as being well acquainted with commerce. When I asked Mr. Stevens his opinion regarding the tax on improvements, he replied:"There is no doubt that the Government may think they can frame an estimate of what can be obtained from improvement®, based upon sound calculations and estimates, but I think that in a very great number of cases it would be impossible to accurately assess the cost of the improvements. I do not think that there are any reliable data to go upon in examining whether the Government proposals will realise the amount that is expected, and the exemption will make the whole thing very uncertain. I do not think we can tell in the least what the effect of the £3000 exemption will be financially. I think that the income tax on trade and commerce, as the terms go, will be extremely uncertain and exceedingly irritating in its operation. You will see the difficulty. Under the property tax there is nothing easier than for a trader or shopkeeper to put down his bills payable, and his debts, and value his stock-in-trade and book debts, and put them on the other side, and the difference, less £500, would be what he has to pay on. But if he is going to make up income tax returns in the shape of a profit and loss account accurately prepared, and the returns are to be at all similar to the income tax returns in Eng land, he will find his position very uncomfortable. It is recognised that the income tax in England is anomalous, and it would no doubt have been amended if it had not been recognised that it was a convenient rough and ready way of getting money when they want it." " Have you considered how the proposals will affect large companies ?" "There is, replied Mr. Stevens, "a very important point in connection with the proposals in regard to both companies ana individuals who own more than £3000 worth of improvements. You will have observed that the improvements are limited to £3000 by way of exemption. The improvements will be included in that portion on which he pays not only the penny, but the graduated taxable amount. Then as to the other branch of the subject, I think, as I have said, any estimate on trade and commerce must be purely speculative. lam very much of the same opinion with regard to professional incomes and salaries. They will be able to get at that more exactly in the long run, but at the present time there can be no reliable estimate. The data at present is very unreliable I think, after the examination I have made of them, in the light of documents in my possession." " Will the Government proposals have the effect of bursting up the large estates ?" " I don't think they will cause the bursting up of large estates, for the simple reason that the attempt to burst them up will not necessarily provide purchasers for the estates it is proposed to burst up. It may be a grievous attack upon the landed interest, but my greatest objection to the whole thing is of a more comprehensive and far-reaching character than that. I think myself that it is a most pernicious theory to hold out, that the exertions of the community on land shall be limited by governmental interference, that is to say, that anyone looking to the occupation of land as a future career shall be penalised if his success carries him beyond a certain point, in a country whore land is the main thing and the most important outlook for the whole of the population." When asked how the Government proposals would be received in the Legislative Cbuhoil, Mr. -Stevens replied : I Should not' like to say what attitude the Council will .take towards them, but that they can look with favour upon the proposals I believe to be quite out of the question,not on the ground of the members being peculiarly associated with ' large property, because they aire not, but on general grounds of prudential finance, and with a view; to the prosperity of the colony in the future."

THE FINING INDUSTRY CANCELLING 01' LEASES. STATEMENT BY THE MINISTER OF MINES. [BY telegraph.—SPEClAL CORRESPONDENT.] ; Wellington, Wednesday. The cancelling of mining leases on tut) Hauraki gold fields was the subject of some discussion in the House to-day, Mr. Jackson' Palmer asked the Minister of Mines whether he had received a copy of the resolution recently passed on the question at a public meeting at the rooms of the Auckland Chamber of Commerce, and whether lie would state what the Government intended to do in regard to the matter.' Mr. Palmer said that the mines on the field required capital for their working, and if capital wore frightened away the mines would perhaps be thrown upon the hands of the Government. The field was not a " poor man's diggings," and they should give every encouragement to the investment of capital. The Hon. R. Seddon, replying to the question, said that application had been made for the cancelling of 32 licenses, held at Coromandel and Kuaotunu. The claims concerned comprised in the aggregate 640 acres, on which only twenty men were employed. No machinery or plant of any kind was on the ground. The owners of some of those leases had asked that they be cancelled. No work had been done on some of those claims for six months. When questions of cancellation came before the Warden, each case was dealt with on'its merits, and the matter left entirely to the discretion of the .Warden. The Minister did not interfere with the Warden in the exercise of that discretion. The warden and the Inspector of Mines Were responsible for the working of the goldfields over which they had control, and it would not bo wise for the State to interfere. The inspectors, he could assure members, would not use their powers arbitrarily. Mr. Bbokland' asserted that during the past three weeks, claims had been forfeited at the Thames goldfields in a very cruel an reckless way, and it would seem. that there was* no "certainty for those working there that they would be protected. He was very much afraid a great deal of mischief had been done already. Mr. Seddon replied that when he was speaking to a deputation of the Miners' Association, he stated that the policy of the Government would be to prevent large areas from being held by speculators, and he maintained that policy would tend to assist the mining industry. He defended Warden Northcroft, who, he said, did not deserve that it should be said of him that he had acted in a cruel and reckless way, as alleged by Mr. Buckland. He had rendered good service to this colony, and did not deserve to be spoken of in that way. Mr. Fergus asked whether, when the cancellation of those claims had been ordered, the interests upon the rates had been paid to date. He thought that it would bo advisable to lay down some rules upon this point. Mr. Seddon said he would be glad to confer with Mr. Fergus on the subject.