FRIEND OF FARMERS.

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

FRIEND OF FARMERS.

PRIME MINISTER'S CLAIM.

REVENUE FROM SUPERTAX.

SUM OF £325,000 EXPECTED

[by TEi/KortAnr. —special nr.poTtTEn.] WELLINGTON, Thursday

Declaring lie had been a friend of the farmers all his life, the Prime Minister, .Sir Joseph Ward, stated in the House (o-dnv that the new taxation proposals •had not, been designed to hurt the ordinary ,mnn on the land. The Prime Minister described as incorrect the statements made in the debate by Mr. D. .Tones (Reform —Mid-Canterbury). The big drum had been beaten among the farmers, who would find on receiving I heir notices that a number of gentlemen had been misleading them and not preserving a close alliance with the truth. The latter portion of the remark was withdrawn at the request of the Speaker. The Prime Minister produced a letter from the Commissioner of Taxes to show the effect of the new taxation proposals on the farming community. The Commissioner stated there were 80,000 farmers in New Zealand and only 25,000 paid land or income tax. The reduction in the mortgage exemption would increase the number of farmers paying tax by 550, while the increase in land taxation would increase the number by 1650. It was absurd, in the light of those facts, to suggest that a huge burden was being placed on the farmers of New Zealand. Charge of Altering Figures. As far as the super tax was concerned, there were only 1750 owners of land with an unimproved value of over £12,500, so that only large landowners would be liable. It was anticipated that £325.000 would lie derived from that source, which made the Prime Minister wonder how Mr. Jones arrived at the figure that £BOO,OOO would be passed on to the fanners.

Mr. Joiits: You have completely altered the figures. The Prime Minister denied the assertion.

Mr. Jones: I repeat it. The Prime Minister: The lion, gentle man would repeat anything. Mr. Jones: And 1 shall speak to it.

The Prime Minister: It does riot, matter if you speak to it until Doomsday. Anyone would think I am, against the farmer, whereas I have been a friend of the farmer all my life. Mr. H. M. Campbell (Reform—-Hawke's Bay): You have hidden it well then. The Prime Minister: I introduced the advances to settlers scheme and it has issued over £40.000,000. I told the Commissioner of Taxes that I did not want anything put" into the proposals which would hurt the ordinary farmer, and the ordinary farmer is exempted from the operations of the new proposals. The Commissioner of Taxes says the increased taxation will be £325,000, and yet the member for Mid-Canterbury says it is £BOO,OOO. Mr. Jones: What about the primage duty ?

The Prime Minister: I will deal with that later. Mr. Jones: Add that on. "Not Paying Fair Share."

Sir Joseph went on to say that the substitution of an income-tax would, in the absence of a land tax. defeat its own ends. He did not believe that the revenue would be obtained if there was an income-tax and an income-tax only. Mr. D. Jones (Reform —Mid-Canter-bury) : Doesn't that show that the land tax must be too heavy now ?

The Prime Minister: No. The position is that they arc not paying their fair share of taxation and will have to join with those who are.

Mr. W. D. Lysnar (Reform —Gisborne) : What about the £IO,OOO man ? He gets off? The Prime Minister: I wili discuss that matter when I come to it. (Reform laughter.) .Sir Joseph said it was absolutely absurd to suggest that land aggregation could be prevented unless there were a system of land taxation. He denied a penal tax was being imposed.