PARLIAMENT.

New Zealand Herald, Volume LXII, Issue 19119, 10 September 1925, Page 12

PARLIAMENT.

A DAY OF WOEDS. TAXATION REDUCTIONS. OPPOSITION or LABOUR, MEMBERS AIR OPINIONS. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON,, Wednesday. Income tax reductions formed the principal topic for debate in the House of Representatives to-day. Early in the after-

noon the Minister for Education, Sir James Farr, presented the report of the Jtoyal Commission on University Education, which was ordered to bo printed ■without discussion on the understanding <ihat an opportunity would be given to the House to debate it on the presentation of the'annual report c>n university education next week. When the Public Accounts Committee reported on the Land and Income Tax (Annual) Bill, recommending that it be . allowed to proceed without amendment, the Labour Party declared itself opposed to any reduction in income tax as prqpose4,jn the bill, alleging that the con. cession being -given at the expense of wage-earfte'fs,.,'iq general and public servants in particular. The Prime Minister defended the general reduction on the ground that it would give some relief to • companies and benefit the farmer by eni couraging the movement of capital from .debenture to mortgage investments. He statell that nest year, after the data re-, commended by tho Taxation ■ Commission had been collected, a general overhaul of: the taxation system would be taken in : hand. ; »' ! ' The debate was continued in the even- , ing, when tho member for West Land, Sir. J. O'Brien, moved that the report be referred back to the committee for recon- . sideration. This gave some of the bill's • opponents an opportunity to speak a second time. The opposition was directed mainly at the remissions;#)' largo incomes. At 12.45 a,ifl;:;"the amendment was lost by 48 votes to 15. The Committee's report was adopted.'' , The Hon: \V. Nosworthy moverl that the House go into Committee on the bill.' •Mr. McCombs raised a point of order that the bill was not an order of - the day and consequently could not be proceeded with. The Speaker, however, ruled against him. A further point of •■totter? raised by Mr.' ; -P. : '^rSser'alio ruled out, After .iftortHsr dwrosrjon, ini which Mr. tli&t l i.she Prime Minis-, ter lad told Pira, h 4' did not intend to go dp with the'ibill, in which Mr. Coates Said his action was quite above board, and m t»lsich Mr.-Sullivan accused him of a breach oj /aith, Labour- was discussing the.motion to go into Committee.on the bill at an early hour this morning.

WEIGHTS AND MEASURES. . 1 amendments by council. I OPERATION POSTPONED. ! ■. j [BY TSLEGRAPH.' —PRES3 ASSOCIATION. ] WELLINGTON. Wsdnesda7. ' When the Legislative Council was in Committee pn the Weights and Measures Bill an amendment was made, on the motion of Sir Francis Bell, postponing the operation of the bill , from . July 1, 1926, un|iil January <■ ■ ffin|fi anc ' 8 snid this was in order to give an opportunity" for. th&G wji'o feared .some of the provisions. the' bill to bring the matter up again next session if they could prove an injury was being done. It was also desirable to make a postponement because certain traders had already ordered an,d were receiving goods, in con- | tainers which were not in accordance with the provisions of tho bill. Sic. Francis submitted that no injury could possibly be doiiejjjy raaking i a postponement. ; •*' The provision in the bill that the nietric system of weights and measures should be the only system recognised in New Zealand was modified by deleting the words "the only,'' and substituting Va." Tho phrase' prescribing that it should not be lawful to- use any wsights and. measures ■ mfi'ev ihan those described in the schedule was deleted. Another clauijo requiring trade machines to be wholly exposed to tho customer .. was also struck out. A new clause was inserted providing that the sale of charcoal, coke or coal by c weight ipstead of measure shall not apply where such substances are for use on ships. The bill was passed as amended.

I TACTION ON,.TIMBER.

' COMPUfWT !N COUNCIL.

Vij [BY REPORTER.] ' WILLING-TON, Wednosdny. A point of some' interest in regard to the taxation of timber-bearing lands was raised in ths Legistetive Council this afternoon by Sir Thomas Mackenzie. Speaking pa the Land and Income Tax Amendment, Bill Sir Thomas remarked that the taxing of timbers on freehold lands was a very singular method of raising taxation.: Tho tendency of such a tax was to force timber into the market, yet if timbered country was not used there was such'an accumulation oi taxation on timber that fit"practically became valueless. It seamdditor jrim opposed to principles. of? Bouad taxation to levy a tax on land and • a Heparate tax on what grew .upon it. v At one time there was also :a tax on the income from such land. Sir Francis Bell: That was only during the war. " That is so," replied Sir Thomas. " but the tax on timbors growing on land lias been in existence for very many years. It seems to me that tho proper course . would bo to assess land, plus timber, at a certain value, which should bo tho basis for taxation." The Hon. Vernon Reed said he thought Sir Thomas was wrong in spoaking of taxation both oil land and timber. For many years timber was not included as land, but a case was brought in tho iSupreme Couft and it was held that ' growing timber, was part of tho land. * Consequently tho land came in for land tax only. Provision had been made whereby planted timbers were exempt. Mr. Reed remarked that he was afraid there was not much timber remaining which was taxed hefrvily." Sir Thomas said he had been speaking t>f his own experience, and that he had Viaid two taxes during his absence in fcngland on land and timber respectively He hoped the position had been altered since his return to New Zealand whereby the double tax had been dono away with. The A,ttorney-Gcneral offered no opinion upon the point.