TAXATION CHANGES.

New Zealand Herald, Volume LXVI, Issue 20304, 11 July 1929, Page 13

TAXATION CHANGES.

STATEMENT BY, MINISTER*

LARGE INCOMES MAY PAY MORE

CHARGE OK " WRIGGLING " MADE.

[r.r TEX-EGRArir. —special BEroRTEn.] WELLINGTON', Wednesday.

'l'horo is a strong likelihood of no taxation relief this year, according to a statement, later qualified, made L>y tho Post-master-General, tho lion. J. B. Donald, in tho llouso of Representatives this even-

Opposition niemhers vero at unco on tho alert when tho Postmaster-General mado tho announcement that it would bo inipossiblo to make a reduction in taxation this year, with a deficit of £577,000, and that there could bo no cliango in tho incidence of taxation. " 1 am sure tho people of New Zealand do not expect it," said the Minister, referring to the reduction.

Mr. C. E. MacMillau (Tauranga) : Hut you promised it. A Voice: Good heavens! Another earthquake. A Labour member: You promised it. Wriggling already. Tho Minister: Thero is no wriggling. There can bo no ehangc in tho incidence of taxation this year. Mr. I*. Eraser (Wellington Central) : What? No change at all? Tho Minister: I don't propose to say much about that —

A Member: I should jolly well think so. (Loud laughter).

Tho Minister: Tho Prime Minister will say all that is necessary.

A Reform Member: You are committing him now. The Minister went on to say iiiat it was only right and proper that the large farmer should bear his share of the taxation. When tho law was passed the wealthy farmers would bo found to pay tho tax just as cheerfully as anybody else. Those with a largo share of wealth had their property protected during the war, aim it was only fair that they should now pay for tho insurance, of that wealth. Owing to tho present state of the country's finances it might be necessary to look to those with tho larger incomes to pay tho larger sharo of tho taxation burden. Mr. A. Harris »,(Waitcmata), who was tho next speaker, said tho Minister had said thero would be no reduction in taxation this year.

Mr. Donald interrupted him by rising to a point of order. 'T did not say definitely that there would be no reduction," ho said.

Mr. Harris said he had taken down Mr. Donald's exact words. Furthermore, Mr. Donald had indicated an increase in income tax and no cliango in tho incidence of taxation. That would bo going against tho Government's manifesto.

After Mr. Harris had concluded his speech Mr. Donald was granted permission to make a statement. "Tho member for Waitcmnta made tho statement that I said there, would bo no reduction in taxation," said Mr. Donald. "What I said was 1 am afraid there will bo no reduction in taxation."

ATTACK ON MR. COATES

COST OF PUBLIC WORKS.

THE MEMBER FOR GREY LYNN

[hv TJXEun.wir. —special reporter.]

"WELLINGTON. "VVednc*d;iy

The pet aversion of Mr. J. S. l'letcher. United member for Grey Lynn, would appear to be- the Leader of the Opposition, Mr. Coates. During his short sojourn iu the House Mr. i letcher has been ono of Mr. Coates' most persistent interrupters, and it was no surpriso that Mr. Fletcher, making what was virtually his maiden speech in the House this afternoon, should endeavour to apply the lash to Mr. Coates.

Mr. Fletcher quickly turned Ills attention to the earlier speech of the Leader of the Opposition, producing a murmur of "Here's another one who. thinks wo are the Government" from the Reform benches. .Mr. 1' lctchcr spoke with a vigour of word and gesture that would ordinarily have drawn lire, but the House was in an indulgent mood, arid repeated hangings on the desk-top and the tearing off of notes from a hook as each point was made did not rouse more than smiles from the Reform benches.

"The Leader of the Opposition said he would havo a lot to bay when I'avllament met, but in my opinion he said very littlo in his speech the other day," said Mr. Fletcher by way of launching his attack. "After sifting the wheat from the chaff I found only two grains worthy of note. Mr. Coates spoke of what his Government has doue in tho way of science in industry, and 1 congratulate, him on that. Then he spoke on the need of investigation in various departments and no one knows better than ho the need of that." Mr. Fletcher said the estimates for completing various railway schemes had risen hv £4.600.000 between J923 and 1923. Had Mr. Coates inquired from his engineers the, reason for those 1 , increases.' Vet Mr. Coates had been hailed as a competent administrator of Railways and Public Works. Mr. Fletcher further declared . that the three, hydro-electric schemes, Mangahan, Waikaremonna and Arapuni, were estimated to cost £2,000,000 odd, hut, the actual cost had been well over £5.000,000. .As a result of such incompetent administration the, people of New Zealand had been saddled with extra interest, debts.

Mr. Fletcher said that on October lb last Mr. Coates, as Prime, Minister, wrote to tho heads of the, various departments staling that as a deficit was expected rigid control of tho country's finances should be exercised. About the same time Mr. Coates issued his election manifesto, which stated that the Government hoped tho improvement, in the. Dominions financial position would continue to such an extent as to permit' of some measure of relief in taxation. The. manifesto, in Mr. Fletcher's opinion, was a cool and dclib erato attempt to mislead the electors of tho country. Mr. Coates had the effrontery— Mr. Speaker: Order! Mr. Fletcher: Ho had Ihe political effrontery. sir, to [>t<t this over. (Laughter.) Mr" Fletcher added that, he would bo pleased to help put the. Government out of oflico unless it did something to relieve unemployment, but he, was of opinion that the. Government was determined to do something. THE SILENT MINISTER. HON. W. B. TAVERNER CHIDED [r.y TELEortAPir.— special it k pouter.] WLI L LIN GTO X. AWI nrarlu y. A reputation as tho "silent .Minister" is being earned hv the lion. W. H. lavorner Minister of Railways, who war, mildly cliided by Mr. C. A. Wilkinson. Independent member for Egmout, in the House this evening. "J would like, to bear a little more from the Minister of Railways," said Mr. Wilkinson. Reform Members: Hear, hear. "Since his accession to office, we have heard very little from him," continued Mr. Wilkinson. "He seems to he always examining something with a view to doing something at a later date. Wo have not had much practical work so far, and wo are waiting." Mr. F. Langstone (\V aimaririo): He is keeping it steadily in view. Mr. Wilkinson : I think he is indulging iri a long and comfortable sleep instead of getting' busy with his department.