SATURDAY, JUNE 27.

Otago Witness, Issue 1949, 2 July 1891, Page 16

SATURDAY, JUNE 27.

REVISION OF TAXATION PROPOSALS. I hear on what ought to be very good authority that the Government have virtually decided to reduce the amount of income tax to 6d all round, abandoning the differential treatment of incomes derived from trades and professions; This decision is understood to have been arrived at as the result of strong pressure broaght to bear by members of the Ministerial party. I hear further that the Government are carefully considering the advisableness and feasibleness of some modification in the proposed taxation on improvements, with the object of getting rid of the objection now raised that the tax is simply the property tax slightly altered and renamed. 16 is believed that these changes will be carried out in drafting the taxation bills, and that when the bills come down they will bo found to set forth a materially altered taxation polioy as compared with that originally propounded in the Financial Statement.

THE OTAGO CENTRAL RAILWAY.

I understand that a very small sum of money will be placed on the Estimates this session for the Otago Central railway. The temporary check to the loan conversion question has left a much less amount available for public works appropriation than was originally expected. The Otago members are nrging that at least £50,000 should be set down for the Otago Central, but in view of numerous other demands -on the limited resources available, the Government, 4

hear, do not see their way to promise anything like that sum, and a good deal of disappointment is felt among the representatives of the localities chiefly interested in the progress of this large work.*

THE DUNBDIN HOSPITAL.

A deputation — comprising Messrs Pinkerton, W. Hutchison, Fish, and Dawson, M.H.R.'s, P. Miller (chairman of the Danedin Hospital Trustees) and Dr Batchelor — interviewed the Hon. R. J. Seddon on Saturday, and asked that the sum necessary to carry out the additions to, the Danedin Hospital, according to ,the sketch plan agreed upon between Dr Macgregor and the trustees, be placed upon the Estimates. Mr Seddon replied that the Government would, authorise a grant of £8000, £4000 of whioh will be given this year, and the remainder next year. This, with the £2000 in hand, will enable the trustees to oomplete the male aad female surgical wards according to the amended plan already mentioned, whioh comprises two new wards, extended northward from a corner at the north end of the present building, the proposed fresh wards being co arranged and constructed as to form part ultimately of an entirely new hospital, with which it is intended to replace the existing old building on the same site.

OTAGO SCHOOL OF MINES.

Strong representations have been made to the Minister of Mines with the object of having the grant of £500 renewed to the Otago School of Mines. At present, however, Mr Seddon does not seem inclined to give way. Mr W. Hutchison, had a long interview with him o nSaturday but could not obtain any favourable promise, and it is probable that if the people of Duuedin want the vote they will have to agitate for it.

A TAX ON BONDHOLDERS.

Referring to Mrßees' speech on Friday night, the Post says:— "Mr Rees sounded the key note of a revival of Sir George' Grey's favourite proposal to tax the bondholders. We have already on many occasions denounced this proposal as so essentially dishonest as to excite surprise at the moral obliquity of those who support it. It would be an act of absolute repudiation and would utterly destroy the commercial credit of the colony as well as cover New Zealand with obloquy in the eyes of every man whose sense of honour is not blinded by political faddism. Whatever the consequence may be ,we trust the Government will remain firm in resistance to the iniquitous suggestion, that having agreed to pay a certain rate of interest on fixed days in London to English capitalists who have lent as their money, we should not under any pretence break faith and force them to accept a composition. This is what the proposal really amounts to."