TUESDAY, JUNE 30.

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

TUESDAY, JUNE 30.

The Council met at 2.30 p.m. BEFOBM BILL, . f The Hon. C. C. BOWEN brought up the report of the Select Committee on the Legislative Counoil Bill. The committee recommended that the bill should be permitted to proceed, with amendments. The olauses relating to seven years were left for discussion by the Council, as also was the clause relating to the appointment of a Speaker. — The bill was ordered to be committed to-morrow. BILLS. The Statutes Revision Committee brought up their reports on the following bills, which they recommended should be allowed to proceed :— Criminal Code, Companies (Memoranda of Association), Partnerships, and Repeals Bills. A tTJESTION. • The Hon. E. C. J. STEVENS asked the Attorney- general what are the artioles of customs duties which cause an artisan with a family of five and an income of £137 per annum to pay taxation to the amount of £12 10s 4d, and a labourer with a family of five and an income of £101 to pay taxation to the amonnt of £11 Us sd, as alleged in page 13 of the Financial Statement. '<

The Hon. P. BUCKLEY said the matter was purely one of comparison, and affected not artioles of necessity so much as articles of luxury, suoh as wines, spirit*, tobacco, preserved fruits, drugs, &o.

PROMOTERS' AND DTBECTORS' LIABILIT*.

The Hon. P. BUCKLEY moved the second reading of the Promoters' and Directors' Liability Bill, which provided for the punishment of persons who gave false information in prospectuses, more particularly as applied to the floating of bogus companies. He thought it only right that the laws of the colony so far as the promotion of *' queer "companies was concerned should be assimilated te the laws of England, whioh made the publication of false prospectuses a misdemeanor.

The Hon. W. D. STEWART regarded this bill as one of the most important measures which had been or would be brought before the Legislature daring the present session. The hon. gentleman generally criticised the provisions of the bill, the effect of whioh would be to drjve out of companies men of substantial means, so that instead of proving a benefit to the community the bill would have the eflfect of

withdrawing capital, and leaving the little capital left in public companies at the disposal of second or third-oless men. He thought the bast safeguard shareholders could have would be to compel the directors of companies to retain their shares until the bona fides of their companies were thoroughly proved. He thought the bill went too far, and would prevent the resources of the colony from being developed. ■ The Hon. 6. M'LBAN was entirely with the Government in their endeavour to protect innocent people who took shares ;n "swindlecates" promoted by people—rich people— who lent' their names to companies, no matter what the companies were, in order that they might make money. The sooner such persons were in the dock the better it would be for the community. The Hod. Sir G. S. WHITMORE expressed a hope that the second reading would be agreed to and that the bill would be sent to the Statutes Revision Committee. The Hon. S. E. SHRIMSKI supported the second reading of the bill, whioh was agreed to, and the bill was referred to the Statutes Revision Committee.

TRUSTEES. The Hon. Mr BUCKLEy moved the second reading of the Trustees Bill, the provisions of which were similar to the bill introduced by the late Attorney-general last year, which was slaughtered in another place. After debate the spcond reading, was agreed to and.the bill referred to the Statutes Revision Committee. The House met at 2.30 p.m. •NOTICB.

Mr RBESgave notice to move the Legislative Council Appointments Cancellation Bill. LEAVE OF ABSENCE

for one week was granted to Mr Mac&rthtur, on acoount of ill-health. REPLIES TO Replying to Mr M. J. 8. Mackenzie, The Hon. R. J. SBDDON said the Government did not wish to insult the professional men in the colony by sending to Victoria for an engineer to report on the facilities of central Otago for the storage of water, for irrigation purposes, and he thought a qualified man could be secured in New Zealand for that purpose. maw bum.

The following bills were introduced:— Td Amend the Friendly Societies Acts 1882 and 188$, and Provident and Industrial Societies Acts .1877 and 1883 ; to amend the Laws Regulating the Sale of Intoxicating Liquors; Small Birds Nuisance Bill. TAXATION RUMOURS AND SUGGES- ' TIONS.

All sorts of reports still find currency as to the probable action of the Government respecting their taxation proposals, It is now positively asserted by those who profess to be in . the " know "* that Ministers will not consent to abandon the differential principle in connection ' withthe income tax, or to reduce it to 6d all round. The prevalent rumour at present isthatan exception to £300 will be conceded in the commercial income tax, and that a further exception will be allowed in respect of improvements ; while the loss thus incurred will be made good by a special tax on absentee landowners and by an inorease

in the graduated land tax. One suggestion which has been offered to the Government is that, in computing the commercial income taxj the taxpayer, if he conducts his own business himself, be allowed- a reduction, as *' professional " income, to such an amount as in ordinary circumstances, he' would pay to. a jjom'petent person as manager on his behalf only, his excess of income above that sum being treated as "commercial" income, apd taxed accordingly. J understand, however, that the Government do not view this suggestion with mnoh favour, and that the plan to which I referred earlier is preferred. From an Opposition quarter comes a report that .as the. change in . taxation is not to come into force until the next . financial year, the Government may by that time find the contemplated alternative so undesirable from a revenue point of view that they will give up the income tax and retain a modified form of the property tax together with a land tax. Ministers, however, deny that there is any likelihood of their adopting this oourse, and declare that they mean to carry out their declared policy, with no alterations save mere committee amendments in detail which will leave the scheme unchanged in all its vital features.