FINANCE BILL DEBATED

New Zealand Herald, Volume LV, Issue 16823, 13 April 1918, Page 8

FINANCE BILL DEBATED

BORROWING BY COMPULSION MAXIMUM TO BE FIXED. SECOND READING CARRIED. [BT telegraph.— association.] WELLINGTON, Friday. The debate on the motion for the second reading of the Finance Bill was resumed in the House of Representatives at 12.30 p.m. to-day. Mr. G. J, Anderson (Mataura) urged that there should be a. distinct indication in the law of the amount which a person was expected to invest in the war loan under the compulsory provisions. Ho protested against unfair criticism of members of tho Cabinet, particularly on party lines.- With regard to Defence matters, he asked if there were sufficient arms in t)io country to arm the whole of tho population in case of need. He approved of the continuance of territorial training, and would go further, and train old men and arm them. After referring to complaints regarding the military medical boards, which he considered called for investigation, Mr. Anderson urged that moro_ should bo done in the way of preparation for work after the war. There should be instruction farms for returned soldiers in every part of the Dominion. Greater facilities for tho development of hydro-electric power wero required. The country should not have to wait until tho North Island schemo was completed beforo commencing development in the South. The call for more men from New Zealand rendered imperative the early organisation of industry. No effective work had been done in this direction, but they could not maintain production without it.

The House adjourned at 1 p.m., and resumed at 2.30 p.m.

Commissioner's Task. Mr. J. Anstey (Waitaki) pointed out anomalies in war taxation under which tome small fanners were unfairly oppressed while others were paying less than beforo the war. Greater timo should be given for consideration of tho Bill so that these anomalies might be removed. Mr, Anstey made a plea for consideration of those men who had subscribed" 1 largely to patriotic funds", and suggested that such contribu. tions should bo placed on the samo footing as contributions to the war loan. The Board of Appeal sot up under the compulsory clauses was not likely to give satisfaction, because tho leading spirit on it would bo the Commissioner of Taxes, who must uphold his previous decision. At the same time he paid a tribute to the tactful way in which the commissioner administered his dutios. Mr. Anstey urged that before more men were called up a most stringent combing out of fit men should be made. Mr J. P. Leo (Oamaru) said no one would object to the Government compelling _ people to subscribe to the war loans since we had adopted conscription of men, but ho objected to clause 16, since it was so indefinite in its effect. A taxpayer had a right to know what he was called upon to pay, and the proposal to give the Commissioner of Taxes power to tax peoplo " according to their means " was power far too drastic, and was hostilo to ono of tho first principles of taxation. Ho did not doubt the integrity of tho commissioner in tho administration of nis Department, but no man, no matter how able or honest, could administer such an indefinite clause with satisfaction to himself, or to tho public. Ho did not like the proposed system, nor did he think it could be enforced.

No Harsh Administration. Sir Joseph Ward, interrupting Mr. Lee, said if he did as Mr. Lee proposed, and made the amount of contribution to the loan fixed and definite, it would mean ruination to many peoplo from one end of the Dominion to the other. Cases were so different and . peculiar in their nature that great elasticity was absolutely necessary, In any case, it was never intended to. administer the clause harshly. If necessary, he was prepared, when in" committee, to mako provision for * further appeal, but he was determined that financial shirkers should bo made to do their duty. Mr. J. McCombs (LytteUon) said there was nfl need to raise war leans when such vast sums wero coming into the Dominion as war profits. He protested against the proposal to extend the life of Parliament. Mr. 0. A. Wilkinson (Egmont) complained that tho "Government was extremely pathetic in pursuing profiteering. The prlfti of many articles in common use were being unduly inflated. Mr. J. C. Thomson (Wallace) pleaded for greater emoluments for those engaged in the educational work of the country. Ho said it was impossible to expect bright-minded youths to take service in such a poorly-paid Department, when other moro profitable channels of employment, either in the State scrvico or privately, wero open to them. Mr. A. Harris (Waitemata), and Mr. L. M. Isitt (Christchurch North), supported the proposal to extend tho life of Parliament. Loss of Future Revenue. After the dinner adjournment, the debate was continued by Mr. R. McCallum (Wairau). Ho strongly protested against the exemption of War Loan investments from income tax. He foresaw that the Dominion would sacrifice an enormous amount of necessary revenno, creating a most serious position. Mr. R. Fletcher (Wellington Central) complained that nothing had been done to give effect to the report of the Cost of Living Committee. Ho was particularly disappointed that no effort had been made to establish State trawlers, and so give the people cheap fish. Mr. R. A. Wright (Wellington South), said the number of our men rejected in Britain for active service was so great' that the question was. a fair subject for inquiry by the Primo Minister when in Britain. It would appear that the British standard was higher than ours, and, if so, it was necessary to know the facts. Dr. Thacker (Christchurch East) said he did not begrudge raising money for war purposes, but no did object to placing these large sums in tho hands of " the extravagant and inefficient " Minister for Defence. Tho next loan of £20,000,000 should be takon entirely from the financial shirkers and tho rest of the community left completely alone. In the course of his reply, Sir Joseph Ward said lie was prepared, in Committee, to make a Supreme Court Judge the final Court of Appeal, and also to fix a maximum amount which those liable to the i compulsory clauses would have to pay , His idea of that maximum was six times tho amount of land and income tax they would have to pay, but ho would not allow tho financial shirker to escape Let there be no misunderstanding on that point. Tho second reading of the Bill was carried on tho voices. The House adjourned until eleven o'clock on Saturday morning.