HOUSE OF REPRESENTATIVES

New Zealand Times, Volume XXXII, Issue 7269, 27 October 1910, Page 6

HOUSE OF REPRESENTATIVES

RAILWAY ENGINEMBN’S PROMO- , TIONS. The House of Representatives mot at 2,30 o'clock yesterday afternoon. itr T. 11. Davey (Christchurch. East) jtsked the Minister of Railways why a aumber of promotions of engine drivers the Government railways had been withhold this year. He stated that the i|t Enginemen and Eire men’s Association jfcntormed him that tho Minister had proHaniscd to make up the first grade proporImioa to 50 per cent., and had undertaken ilpiatkthey would not bo losers through having been withheld last ■- jeair, * . Several other members stated that the 1 unginemen had communicated with them expressing great dissatisfaction with this year’s classification. The Hon. J. A. Millar replied that he was not in the habit of breaking his ■word, and he had not made such a promise as was alleged. He told the engine.raon that they would remain in exactly the same position, for promotion this year •as if then) had been, no need to withhold tho increments. They were asking him to single out a few men to get paid. If? they were to receive tho amount of tho Increment withheld the whole Civil Service ought also to benefit. Tho enginemen. were fighting for a compulsory maximum of 50 per cent, in each grade, but tho House altered, the law a few years ago. making it optional. Ho had to refuse increments last year owing to the reduced revenue, and the railwaymen svere reasonable and perfectly loyal in accepting the position. If the House wished to bo fair, it could not confine tho proposal to the ongmemen alone. SCENERY PRESERVATION Tho Scenery Preservation! Amendment Sill (Hon. T. Mackenzie) was introduced and read a first time. QUESTIONS DISCUSSED The rest of tho afternoon was spent in discussing Ministerial answers to quesmany of which were on purely l .. . • matters. Vr A. E. Glover (Auckland Central) ; ti:. ,- of the delay in giving effect to tho i i-ktMvndations of tho Timber Comx::l- on, urging that tho present impori f Oregon piuo were an injustice to ihe timber workers. No timber should be allowed to come in unless under a. high duty. Mr J. i‘. Luke (Wellington Suburbs) ■stressed the need for a more patriotic feeling among harbour board members and others, who should do all they could to encourage tho local iron trade rather than send work outside the Dominion. Ho quoted tho action of a northern harbour board wliicli sent to England for a large casting that could have been made perfectly well in New Zealand. The Government should find some means of inducing its nominees to encourage local industry to a greater extent than they idid at present. ,

COMMERCIAL TRUSTS

MEW ZEALAND MEAT SALES. CAM THEY BE CONTROLLED? The Prime Minister (Sir Joseph Ward) moved the third reading of tho Commercial Tnffta Bill. Mr W. H. Herrlen (Taurajiga) was tho only speaker besides (,1m Prime Minister. Replying to him, Sir Joseph promi-ed that ho would ! (>f -k into the (juMisn of introducing a_ clause designed to prevent combinations intemt-e-l to iniTulv depress prices, it was ■ mat for which had to bo approached cii.iitioii-l.v. If any outside combination attempt ad to exploit the Now Zealand meat trade, tho safest road for tho farmers to take would be to associate themselves with the government of the day, whin}) might raise the whole question as to whether (he country ought to go further than over before, and control tho de’po-.al of the moat in London. Tho whe'e wealnii--of Hie position was not a fear of a combination of buyers in New Zealand, because thoro wore so many of ihoni authorised by independent purchasers that combi-nation was impossible. Hut it would bo iiiccniparabl.v better for this count,rvi-tbeugb lie admitted its dif(ieiiiliy—if tho whole of tho farmers nos-sps-ed one huge organisatinn to control the .sain of their moat supplies in London. Then, in case of a fall in values, they could save themselves from causing a glut in the market, instead of the present system under which every shipper enleired into competition with his neighIxm.r, thus forcing down the price, it was a, leg proposition, but lie was suro that those who exported meat were on the aiert to protect their interests against any outside combination. He did not wish to discuss the question whether the steamship lines running to New Zealand were controlled by American syndicates. There could lie no doubt that one great financial institution in America bad an enormous interest in one shipping Hue landing to New Zealand, hut the ’nonunion was fori ana tely in the position of not being denendent upon imv one line of siarnm-.i-s. lie believed tile Hill would do good; certainly it would do a,way with ono or two abuses which had already crept into .Vow Zealand. The Hill was read a third time and passed.

THIRD READINGS Tim Secret Bill (Sir Joseph Ward) was read a third time and posted. , The Post ami Telegraph Amendment Bill (Sir Joseph Wanl) was read a third time ami passed. - LAND AND INCOME TAX ALLEGED INEQUALITY OF THE INCREASES. On. the motion to accept the amendments made in committee in the Landtax and Income-tax Bill (Sir Joseph Ward) the leader of the Opposition (Mr Massey) repeated his committee arguments. declaring that ho was dead against the Bill. The Prime Minister (Silt Joseph Ward) replied that although Mr Massey professed to oppose over-borrowing, and almost wept when he talked about it, he opposed a measure which "was intended to prevent the necessity for over-borrowing, by giving contributions from the revenue for the making of railways, roads, and bridges. Nobody with an income of lees than .£7OO would pay anything extra under the Bill, while those with larger incomes were quite prepared to pay a little more so as to maintain a strong position in tiho matter of defence. He liad expected that the Bill would have gone through without opposition and the members would have been pleased with the moderation displayed in it. This year the Government intended to borrow *81,750,000 for public works and proposed to supplement this by a large sum from the consolidated revenue—probably double the million and three-quarters, but at all events a million or more. A HOSTILE AMENDMENT. The report of the committee was agreed to on the voices, but on the motion for third reading Mr T. E. Taylor (Christchurch North) moved the following, amendment That in view of the facts that large surplus revenues are known to be accumulating this year, proving the Dominion's finances to be in a very buoyant condition; that the people have an inherent right to dispose of their earnings at their discretion after paying such taxes as aro proved to be equitable and essentially necessary to cover the cost of gove: nment; that the scale of income tuxes contained in this BUI deliberately exempts incomes over .£2OOO a year from any increased graduated tax; and further that the known surplus revenue accumulated would Justify a reduction in taxation rather than an increase of some =BIOO,OOO a year as is proposed in this Bills this House/ while approving of the principle of the graduated income tax, is of opinion that the Bill shouldc-Bl- read this day six months. Ho protested, as when he moved a simi* iar amendment on the second reading of the Bill, that no taxes should be imposed unless it could be clearly shown that the money was absolutely required for the good government of the country. The State had no right to take from a man a single penny more than was esr 1 sential. The earnings of the people were their own. The country was doing a wrong thing in despoiling oil the people in taxation of their earnings to create land values that went to benefit a particular class only. He would like to know how it was that the Prime Minister hod a million or so of money to finance the Public Works Fund more than was absolutely necessary. During the seventeen years up to 1903 the increase in the capital value of property was .£131,000.000, while the increase in the unimproved value during the same period was *883,324,763. In the same seventeen years they had spent *826,250,000 of borrowed money. He did not believe that all of the increased value was. due to public works expenditure, but assuming that only one-third of it was, they had a sum of nearly thirty millions, which was more than the whole of the borrowed money which had come into the country. lie regretted very much that in the Bill tho principle of graduation should stop with a salary of *B2OOO, as ho believed that men of wealth were not being asked to bear a fair share of the burden. This additional taxation was not wanted, and was only being lifted to increase the surplus that might bo available for transfer from the consolidated revenue to the public works fund. This was certainly not a good thing unless it were accompanied by a betterment tax. The amendment was seconded by Mr R. A, Wright (Wellington South). EXTRAORDINARY! Mr G. Laureneon (Lyttelton) chided Mr Taylor with moving "such an extraordinary amendment on such a very proper Bill." . Speaking later to justify his action m seconding the amendment, Mr Wright saiil he did so because no satisfactory’ reason had been given for increasing taxation. He believed that it # was being done to provide money to assist the Government during the next election fight. The amendment was defeated by 53 votes to 12. Mr Massey combated the view that the increase in land values was wholly due to public works expenditure, arguing that it was rather the result of a tremendous demand for all kinds of produce in the markets of the world. In piling up taxation on top of the present prosperity they were doing a very foolish thing. He was inclined to think it was being done because* the Prime Minister was anxious to get as much money as possible ready in view of the election next year. . Sir William Steward (Waitaki) suggest-

eel that had it not been, for tho claims of party his proposal to grant exemptions of £25 for every dependant would have boon carried by four to one. BETTER TO BORROW? Tho debate was prolonged until midnight, and when the Rrimo Minister got an opportunity to reply, ho combated the arguments of those who had urged that it would be bettor to borrow money for public works expenditure than transler sums annually from the consolidated revenue. During tho past nineteen years the -sum ol ,£7,230,1/00 had been paid over to tho public works fund from the consolidated revenue, the interest on which, had it been borrowed, would have been TiMl.bbO per annum. This amount, therefore, had been saved to the country by the transaction, if Mr Taylor’s amendment, for which a number of Opposition members had voted, had been carried, it would have meant that the Government would have been unable to collect any income tax this year at all. "That was a trick of the Bill/' said Mr Massey, one of those who supported Hie amendment. The Prime Minister; Tho lion, gentleman finds himself in an awkward position over his vote. There Is neither trick nor suggestion cf trick in this Bill. Mr Massev: Oh, yes, there is. The third* reading was agreed to and the Bill was passed. CONTAGIOUS DISEASES EE PEAL BILL PASSED. The Prime Minister moved the third reading of the Contagious Diseases Act Repeal Bill. Mr J. Allen said it was a pity tho matter was not being dealt with further this session. Legislation might do much in an educative way. Dr To Rangihiroa said there were many social reforms brought forward of less importance. Tho Prime Minister said ho would ask tho House next session to set up a committee, probablj- of both Houses, The repeal of tho Act would not make the position worse. Tlie Bill was read a third time and passed. Tho House rose at 1 o'clock.