THE BILL DEFENDED.

New Zealand Herald, Volume LXVI, Issue 20372, 28 September 1929, Page 13

THE BILL DEFENDED.

PRIME MINISTER'S SPEECH. CONTINUAL INTERRUPTION. INTERVENTION* OF SPEAKER. "DO NOT ENVY LANDOWNERS." [by telegraph.—special reporter.] WELLINGTON, Friday. Securo in the knowledge that tho second reading of hie main Taxing Bill would bo carried with Labour's support, the Primn Minister, Sir Joseph Ward, made a spirited defence of his proposals, when speaking after tho defeat of Mr. Coates' amendment, in tho House this afternoon. The Speaker intervened at one stage to intimate that while aware that there was considerable feeling in tho House interjections wero too frequent and must bo curtailed. Tho Prime Minister said that what was in tho bill was a mero consequence to what the Reform Party had dono in tho past. Mr. W. D. Lysnar (Reform —Gisborno): It is 300 times worse. The Prime Minister said Mr. Coates was responsible for an increase in the income tax for 1928-29 that made a 38 per cont. additional charge on incomes of £6OO and a 24 per cent, increase on incomes up to £2OOO. Attitude of Farmers. Mr. Coates: What are you quoting from ? The Prime Minister: I am giving you from my mouth what is a fact. (Reform laughter.) That' is what happened, yet you are stimatising what is in this bill as class legislation. Sir Joseph Ward said that the land tax since 1914 had increased by only about 20 por cent. Ho denied that there had been any agitation among tho farmers against the bill Mr. W. J. Poison (Independent—Stratford) : You arc wrong. The Primo Minister: Thero has been agitation among a few. One of the leading citizens in Wellington communicated to me tho opinion that it would be tho finest tiling in the world for the United Party if tho Reform Party were to keep up its present opposition to the bill. Sir Joseph said he had listened to the speech delivered by Mr. D. Jones (Reform— Mid-Canterbury) on Thursday night, and had come to the conclusion that butter would not melt in his mouth. (Laughtor.) "He is the most spurious speaker I have ever listened to," declared tho Prime Minister. Reform Membeis: That is not fair. Warning by Speaker. Tho Speaker said ho knew thero was considerable feeling in the House, but tho interjections wero certainly not reasonable. "1 will give this final warning," lie added. Sir Joseph Ward said there were not 260 farmers in any electorate or county in New Zealand that would be affected by the higher charges. The cardinal principle of tho bill was to bring in a section of the community that had escaped its fair share of the taxation burden after the war was over. Tho Prime Minister stated he had indicated in the Budget that some means would havo to bo provided to make up tho deficit. Ho had been asked why 17 years ago ho had not followed tho saino course in regard to taxation. His answer was that there was no shortage in tho revenuo at that tiino. There was to-day, however. Tho proposals contained in the Budget were sensible and rational. He hoped that at tho end of the financial year sufficient recovery would havo been mado to dispose of tho priinago duty. It was a temporary tax only. No Assurance Given. Mr. W. E. Barnard (Labour —Napier): Aro you able to give an assurance now ? Sir Joseph: I cannot givo it now. lam not in a position to givo it. I am l»opeful wo will come out all right. Wo aro financing in tho direction that will bring us out. Sir Joseph said he wanted to remind the House of what the Government was going to do for tho farmer. Mr. J. A. Nash (Reform —Palmcrston): We know what you aro doing. The Prime Minister: This year we aro providing between £250,000 and £300,000 in fire contributions to the farmer.

The Leader of tho Opposition, Mr. Coatcs: That is not new.

"I did not say it was," said the- Frimo Minister.

Mr. Lvsnar: Give us some details.

The Prime Minister: I' would recommend the honourable gentleman to share his large-landed estates with others. Mr. H. S. Kyle (Reform —Riccarton): What about your own ? The Speaker: Order! Order! Tho Prime Minister: I do not own any country. Mr. Kyle: What about your own businesses ?

Tho Prime Minister: What does the lion, gentleman do for a living ? Ho mopes round all day and does nothing. Tho Speaker: Order! Order!

Mr. Lysnar: That has nothing to do with this bill

The Prime Minister: What you want is to retain your largo landed estates. The Speaker called the Prima Minister to order.

The Prime Minister: Well, sir, I'll say what the ht>n. gentleman wants to do is to be counted a big landed owner. lie will not cut up his properties. The Speaker again called the Primo Minister to order.

Mr. Poison: That is not fair. Mr. A. M. Samuel (Reform —Thames): That is below the belt.

The Primo Minister said part of the intention of the legislation was to induce the large landowners to cut up their properties. If ho were to give way to tho Reform Party it would mean that the whole of tho provisions would bo repealed. Tho Government was not prepared to do that. Tho Opposition could not look for any redress from tho Government in that respect. Mr. Lysnar: You arc evading tho question. Tho Prime Minister: We do not envy the large landowner; I don't. lam glad to see him getting on, but he must yield his acres to taxation.

Mr. A Hamilton (Reform —Wallace): Why not the big city landowner ? The Prime Minister* The city landowner is not in tho same category as the country landowner. To apply the same principle of taxation in each case would be neither just, fair nor equitable. The second reading of tho bill was then agreed to. OPPOSITION TO THE BILL. SWORD OF TWO EDGES. " INJURING THE DEFENCELESS." [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Friday. The adjourned debate on tho second reading of tho Land and Income Tax Amendment Bill was resumed when tho House met this morning. Mr. G. R. Sykes (Reform —Mastcrton) described tho measure as a two-edged sword. He declared that after a season in which the landowner had suffered loss through drought or for some other reason he would be called on to pay the penal land tax. Then, should ho have an exceptionally good year, he would be called on to pay income tax, because it was greater than the penal land tax. This, Mr. Sykes considered, was entirely unfair and inequitable. He alleged that the Primo Minister, in endeavouring to get at the man with a rich, unencumbered estate, had run amok and was injuring many defenceless and less fortunate persons in the process. Mr. J. S. Fletcher (Government —Grey Lynn) refuted the suggestion that the bill would affect the smaller landholders. Effect on Land Values. Mr. If. G. Dickie (Reform —Patea) insisted that the legislation would depress land values and in doing so affect every farmer in the Dominion. He doubted whether it would be possiblo in many instances to get renewals of mortgages. Ho urged that when the bill was in its Commit!co stage it should at least be amended to grant full exemption on all mortgages up to the statutory amount. Mr. K. S. Williams (Reform —Bay of Plenty) suggested to the Prime Minister that the date for the assessment of farmers' incomes should be postponed from the end of March to tho. end of August or September. lie pointed out that by tho end of March the farmer could only guess at what would be tho j financial result of his year's operations.

Mr. Williams said he could not understand why any man with an inclination to win success on tho land should bo hampered in his ambition. Ho had no objection at all to the landowner paying his fair share, but in the interests of (he Dominion as a whole his range of progress should not be limited. To a certain extent there seemed to be a general tendency to belittle the success of tho man on tho land. Step to Socialisation. Mr. 11. Holland (Reform —Christchurch North) said he considered the fact that tho bill presupposed hardship was sufficient to condemn it. Ho did not think it would take two or three years to classify the land. It should be possible to obtain classification of large estates in a very short time, and with such information "at the Government's command it should be possible to formulate a more equitable system and obviate the need of a hardship clause. Mr. W. H. Field (Reform—Otaki) stated that he was satisfied tho bill would operate in a very brutal way. Ho could underhand tho Labour Party's support of the proposals, because he believed they saw in thorn a big step toward tho socialisation of the land.

Mr. W. E. Barnard (Labour —Napier) said ho hoped the Government, when acquiring land for closer settlement, would take up property in Hawke's Bay, in which district thero was ample scope for progress in this respect. He hoped that tho Government would eventually revise tho whole taxation system, although lie realised that it could not be carried out immediately. After tho Leader of tho Opposition, Mr. Coates, and the Prime Minister had spoken the bill was read a second time.