STAMP DUTIES EXEMPTION.

Otago Daily Times, Issue 19257, 22 August 1924, Page 8

STAMP DUTIES EXEMPTION.

QUESTION OF RESTORATION legislative council discussion. (From Our Own Correspondent.) WELLINGTON, August 21. In tho Legislative Council yesterday the Hon O. Samuel moved —“That it is the opinion of the Council that it is expedient that steps should be forthwith taken to restore the exemption from stamp duties which always existed before the war in favour of all mortgages, agreements for, and transfers and releasee of, mortgages. Mr Samuel thought his motion would meet with almost universal approval. He considered that it would bo recognised that all classes of the community would benefit from a reversion to the pre-war practice of exempting mortgages from stamp duty. From the early days of New Zealand the practice alawys had been to exempt mortgages. Ho had found that running right through the statutes up to the time of the war, when, unfortunately, our methods were changed, and we had to depart from established rule which all were convinced was essential to the good of the community. It was as essential for the welfare of individuals as for tho community that money should bo available for settlement and for the development of industries. What he advocated always hod been regarded as essential, and ho oould not find that it was questioned at any time, but war came, and necessity knew no law. Wo were threatened with great disaster. It became necessary to strain every effort to resist a great evil. All economic ideas bad to be abandoned, and everything possible had to be done to meet the assault that had been made on civilisation. It was with a view to calling attention to necessity of reverting to the pre-war condition lie had raised the question. The object of imposing duty was not merely to get revenue, but largelv to gather together in New Zealand money to do our part in tho war. Tho present conditions made investments on mortgage less desirable than formerly. Freedom from stamp duty was desirable, not only in respect of mortgages on land, but respecting mortgages concerning all industry. Another phase was that prior to the war British capital came into the country, and now it had almost entirely ceased. The Hon. J. P. Campbell seconded the motion.

The Hon. Sir Francis Bell (Leader of the Council) said lie hoped Mr Samuel would be content with the discussion, and would not press the. matter as far as a resolution, because the Council clearlv bad no jurisdiction in such things. The Stamp Bill soon would come before the Council, which could then express its opinion, but to pass the motion now before the Council would not ho in conformity with the Chamber’s recognised function. As to the merits of the question, he agreed with Mr Samuel in his objection to the tax. The Treasurer was now making concessions in taxation in various directions, and it was for the Treasurer to say what should be done subject to his being overruled, which meant being turned out of office. It has to he borne in mind that a certain sum had to he raised, and if there were a surplus reductions could be made in the year following. Mr Samuel agreed to the suggestion of Sii Francis 801 l and withdrew his motion.