POLICY OF LABOUR.

New Zealand Herald, Volume LXVI, Issue 20341, 23 August 1929, Page 13

POLICY OF LABOUR.

VOTE AGAINST REFORM.

SUPPORT FOR LAND TAX.

LEVY REFLECTS PARTY'S VIEW

PRIMAGE INCREASE OPPOSED

[liY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Thursday.

The announcement that the Labour Party would vote against tlin amendment moved by the Leader of the Opposition, Mr. Coates, was made by the Leader of tho Labour Party, Mr. H. E. Holland, in concluding his speech in the House this overling. " The amendment sets forth that the increase in (he primage duly will increase tho cost of living and I agree," said Mr. Holland. " J think that goes without saying. It will be passed on and it will bo doubled by the time it reaches the consumer. 'lho primage duly is an unscientific tax in any case, but 1 will not object to it on luxuries. I would not care how high it went on such luxuries as 80 guinea silk frocks, or on silk hats for that matter. (Laughter.) Variations in Taxation, " That, of course, 1 expect would bring objections in certain quarters," added Mr. Holland, with a smile. " But I think we are entitled to challenge tho sincerity of tho Reform Party when it attacks the primage duty. Since the war the percentage of direct tax to (ho total tax was considerably increased, and the total customs and excise tax to the total tax has considerably increased. That was under the Reform administration. In 1919 the percentage of customs taxation to tho total taxation was 29.74, in 1920 it was 51.75 and in 1929 it has fallen a few points to 48.02, the drop being due to the fact that there has been a falling off in whisky consumption. Labour and Land Tax. " Tho prosent Government's land taxation proposals reflect to some extent the proposals of the Labour Party. It is the roost arrant nonsense for the Leader of tho Opposition lo call the proposals a single tax when there is an income tax and other taxes alongside tho land lax. Tho Leader of tho Opposition has intimated that he docs not expect the Labour Party to voto with him, and it is clear that his motion is a gesture to the large land owner and a worm on a hook to catch the small farmer if he can. There arc only 750 farmers with an unimproved value over £12,500. It is quite clear that it is the wealthy man's case the Reform Party is pleading. It is not the taxation that is hitting the farmer to-day; it is the interest bill.

Mr. W. D. Lysnar (Reform—Gisborne): If you were a fanner you would not say that.

Mr. Holland: And if the lion, gentleman were a bona-fide farmer lie would not say that.

"With respect to the primage duty and the other items of taxation, wc must lay it down as a foundation principle that a party should do as a Government, what it advocates whilo in opposition," continued Mr. Holland. "When a party has neglected to do that while on the Treasury benches it cannot lie sincere in complaining that the present Government does not do so. Move Against Reform Party. "The situation wo have reached in this House to-day is not one in which we have to decide on the primage duty or taxation proposals of the Government, but one in which we have to decide whether the. Reform Party should go back to the Treasury benches. 1 think wo may tako it that whatever was left in doubt after the 1928 elections the people of this country made up their minds that the Reform Party had to go. It is true the Labour Party's propaganda pulled the Reform Party down. The Liberals sat in opposition for 13 years, supporting the Reform Party from time to time. Tha Labour Party was there three years. Mr. S. G. Smith (Government —New Plymouth): Supporting the Reform Party from time to time. Labour Voices: Not once.

"The Labour Party ploughed and the Labour Party sowed, but the United Party reaped," said Mr. Holland. "When the division bells ring to-night the outstanding question is whether the Reform Party is to go back on the Treasury benches. I am of opinion that the people would hold it against the Labour Party were we to put Reform back. "I am prepared to give my vistc, and I think every other Labour member is prepared to give his vote, to displace the Government when Labour can take the Government's place on the Treasury benches. For the reasons I have given we have, come to the. conclusion that we have got to vote against the amendment."