PARLIAMENT.

New Zealand Herald, Volume XL, Issue 12401, 24 October 1903, Page 6

PARLIAMENT.

£bt temgrath.— association.] LEGISLATrvFcOUNCIL. .' ; V V;'..■■.. FRIDAY. .... ; , . The Council met at half-past two p.m. STATE FIRE INSURANCE BILL. The managers at the conference on the Council's amendment in Ilia State Fire Insurance Bill reported that they were unable to agree. The Attorney-General said the amendment itself was not objected to, but the House considered the Council exceeded its privileges in amending a money clause. tie moved, "That the request of for another conference be acceded to." During the discussion, the Hon. J. Kigg said the Council was claiming the right to amend clauses in what they called commercial Bills, and were seeking to extend their privileges. He suggested that in order not to jeopardise the Bill the Council should waive its amendment, and state a question for the opinion of the Crown law officers M England. , ' ... . „ The Hon. W. Bolt supported this view The Hon Sir H. Miller contended that the point raised was a great historical one, arising under totally new conditions. At the conference, the Premier admitted that the old idea that the Council could not amend Bills of this character, that had reference to money, had exploded. >:>ir H. Miller urged that unless the. Council asserted its rights to amend such measures as the State Fire Insurance Bill, it would go a long way towards committing political suicide. After further discussion, the motiom for a second conference was agreed to.

FINAL STAGES. The Municipal Corporations and the Sand Drift Bills passed their final stages. WATER POWER BILL. The Water Power Bill was committed. The Hon. S T. George moved an amendment in clause 3, relative t* the delegation of powers to a local authority to include <"anv person or company." This was negatived by 16 to 8, and the clause agreed to. Progress was reported at chaise 6. At five p.m. the Council adjourned.. '■ The Council resumed at eight p.m. Clause 6 of the Water Power Bill, providing that the Governor may by Order-in-Council limit the operation of the Act to any lake, river, or stream specified m the Older, was struck out by 13 to 7. A new clause, moved by the Hon. H. Feldwick, exempting from the operation of the Act companies who have powers for generating electricity by water power vested in them by statute, was negatived. The Hon. W. Caracross moved a clause to exempt the Hawera Lighting Company from the operations of.the Act. This was carried by 11 to 6. The Bill was then reported. SECOND READINGS.

The Poukawa Native Reserve Bill was read a second time pro forma, end referred to the Native Affairs Committee. The Clutha Floods Relief Fund Trustees Empowering Bill was read a second time. The Queen's Scholarships Bill was read 81 second time without debate. The Council adjourned at ten p.m.

HOUSE OF REPRESENTATIVES. FHIDAT. The House met at half-past two p.m. PRIVILEGES OF THE PRESS. Mr. Aitken presented a petition, from the Wellington branch of the New Zealand Institute of Journalists with reference to the privileges of the press. Mr. Seddon moved, " That the consideration of the petition be postponed." The matter required farther consideration, as it alleged that a threat was made by the House that reporters committing a breach of privilege would be excluded from the press gallery- . . 111 -Mr. Speaker said the petition had already been received. Mr. Seddon urged that a petition making a reflection on the House was not admissible. Mr. Massey suggested that it was for the Speaker to say whether a petition was respectful and temperate, and therefore admissible. , Mr. Speaker said it was the duty of the lion, member presenting a petition to satisfy himself that there was nothing in the petition which rendered it inadmissible. Eventually the question of the admissibility of the petition was left in the hands of the Speaker.

MIDLAND RAILWAY PETITIONS SETTLEMENT BILL. On th„ motion for the third reading of the Midland Railway Petitions Settlement Act Amendment Bill, Mr. Jas. Allen urged that Mr. Coates, the receiver for the de-benture-holders, had agreed to accept £150,000 in scrip, and now, because some of the debenture-holders objected to the arrangement, the colony was forced into a fresh course,' which meant greater cos> to the colony to the extent of £10,000. Sir J. Ward said a difficulty had cropped tip which prevented the issuing of the stock authorised by the Act of last year within a reasonable period after the Act was passed. An alteration made in the Bill of last year in committee, an alteration made with" the best intentions, limited the issue of debentures to a sufficient amount to raise £150,000, and the delay in the issue of the stock was caused by th* fact of the dissolution of the company, and to give effect to the agreement the company had to.be reinstated. This Bill simply gave effect to the intentions of the Legislature. Mr. Seddon, in reply, stated that when he was in London conferring with the deben-ture-holders they offered to pay £60,000 if they were allowed to take the railway back. That offer he refused, in view of the fact that the colony had spent large sums of money on the railway. The third reading was carried on the voices, and the Bill passed. ELECTORAL BILL. The Electoral Act Amendment Bill was brought down by Governor's message, and read a first time. "'"""■„'■' \ TREASURY BILLS EXTENSION BILL. The amendment made in the Treasury Bills Extension Bill was agreed to, and the Bill was put through its final stages. LAND AND INCOME ASSESSMENT . BILL. In moving the second reading of the Laud and Income Assessment Act Amendment Bill, Mr. Seddon said that, owing to anomalies in the present Act, most of the clauses in the Bill were necessary. The 'increase in revenue under the Bill would only mean £3000, exclusive of the absentee tax, which would be £2000, while the basis would be more equitable than at present. In regard to the concession granted to English mining companies, lie said that the accumulated tax not collected from . these companies amounted to £25,000, and the proposed concession meant £10,000. Thi was the first instalment ot preference, and an earnest of the intentions ol the colony. Speaking of the inequity of the present tax, he pointed out that a per- ' son having property valued at £9999 paid £5 4s 2d, an/ 5 a person having property valued at £10,000 paid £10 3s 4d. For property valued at £19,999 the tax was £21 ss; on £20.000 it was £41 13s Id, and so on in proportion. The steps were too wide and the Bill proposed to reduce them. From £5000 to £20,000 the owners paid £<M 1 less than at present, and on the lesser amount there was practically no difference. The absentees at present paid a paltry £900, and under the Bill they would pay un additional £2350.

an additional burden without taking off any other burden, it seemed to him the time war not ripe for anything of the kind. ■ ■ Mr. Massey said .•the Premier had declared that the Bill would remove anomalies and fairlv adjust the incidence of taxation, but. he (Mr. Massey) would show that the Bill did not by any means remove all existing anomalies, and that it went in the direction of increasing the graduated land tax. He did not suppose that the increases would be felt by the great bulk of the people, bub that fact should not influence the House in dealing with the question. The House should see that all classes were fairly dealt with. The proposals contained in the Bill showed that the colony was getting dangerously near a policy of confiscation, for excessive and unfair taxation on any section of the community meant confiscation. It was very significant that at the very first sign of tightness of the money market the Government should give another turn of the screw. It showed what they had to expect. He contended that, without any interference on the part of the Government, the tendency was to subdivide large estates, and in proof of his contention pointed to the way in which large estates in the Waikato district had been cut up. The imposition of the absentee tax would have a bad effect, and it was not* worth doing. It was a case of straining at a gnat and swallowing a camel. We borrowed at the rate of £500,000 a year in England for the purposes of the Land for Settlement Act. That land, he contended, became the property of the English moneylender just as if ho held the title deeds of it. 'Hie Premier ought-not to do to others what he would not like done to himself. In its present form our taxation was unfair in that it pressed too heavily on land. It seemed, so. far as the present Government was concerned, that the landowners had to keen up the heavy end of the log. Mr. Massey pointed out the anomalies that existed in taxation in regard to partnerships and dairy companies. He was very glad the Premier proposed to strike out clause 13. He felt sure it would not have been tolerated by the people or this colony for a month. Sir J. Ward said that in the aggregate the alterations would result in a general remission of taxation. He asked any member to effect, an adjustment which would work out more equitably than the schedule of the Bill. A small increase was unavoidable. The only point to consider was the incidence of that increase. Mr. T. Mackenzie admitted that the system under the Bill was an improvement, but did not see why land should be taxed on the graduated scale and income be subject to a fixed rate. Mr. Laurenson said the Bill relieved taxation on property up to £50,000. It ought to have commenced its increases lower down.

Mr. Wilford strongly supported the proposed increase in the absentee tax. Mr. Ell said the farming class favoured a graduated tax to cope with huge estates. Mr. Witty thought while they were about it they should have made the absentee tax higher. Mr. Hanan would like to see the Government do something in the way of a betterment tax where railways enhanced the value of land.

Mr. Buchanan characterised the absentee tax as a paltry, miserable business, a squalid commentary 'upon the professed desire to weld the ' colony closer to the Mother Country. Mr. 'Hogg urged that the absentee tax should be made a more substantial one.

After further debate. Mr. Seddon, in reply, said though there was a small increase* nearly all through the schedule, the increase fell really on the larger estates, and the tax' was made more even and equitable all over. Many landowners only paid half what they ought to pay, because' their laud was undervalued. There was one value for taxation purposes and another value when the Government wanted to purchase the estates for settlement. . On a division the second reading was carried by 41 to 8. SAND DRIFT BILL. The amendments made by the Legislative Council in the Sand Drift Bill were agreed to. MUNICIPAL CORPORATIONS BILL. Two new clauses inserted by the Legislative Council in the Municipal Corporations Act Amendment Bill • were held over for further consideration. . The House rose at twenty minutes past one a.m.