PARLIAMENTARY GALLERY NOTES.

Otago Witness, Issue 3313, 12 September 1917, Page 37

PARLIAMENTARY GALLERY NOTES.

By Pat.

WELLINGTON, September 8. Tho outstanding topic for the week has been the astonishing success of tho loan. The raising of £16,000,000 in such a short epace of time is an astonishing feat, and justifies the confidence of the Government, •who had been much criticised for allowing bo short a timo in which to raise tho money. The Finance Minister has been the recipient of very warm congratulations. Inside the House the main business of the week has been the committee stage of the Finance Bill. In this stage the various objections take form, and their value can be estimated. Criticism focused principally on two questions—the tax on tea and the income tax on companies,—while the tax on amusements received some attention. The tea tax was the only one upon which a division was taken. Omitting pairs, the numbers for the tax were 37; against, 21. Mr M'Combs moved to delete the duty on tea altogether, voting to replace it by the excise profits tax. He can scarcely have expected that a change so drastic would havo been entertained by the House. Mr Massey's attention may be drawn to Mr M'Combs in his search for a gas expert to attend to the wants of the Wellington public Sir J. G. Ward marred the effect of much high-souled eloquence about the hardship on the poor by showing that the tea tax would amount to only Is 9d per head of the population per year. He (surprised many members of the Hoin=e Ly stating that, owing to the price of whisky, the importation had dropped, with a resulting fall in the revenue, and that, consequently, the additional tax of 2s a gallon on whisky suggested by his critics would cause not an increase, but an actual loss of revenue. Truly liquor is difficult to catch. Mr E. Newman supported the tax on tea, mainly upon the ground that every section of the community should bear its share of war taxation, and he asserted that tea-drinkers would willingly pay the small tax proposed. Mr Glover, faithful follower of Sir Joseph Ward and shadow of the Hon. A. Myers, apologetically opposed the tax upon the ground that tea was a necessity, and this reason, in 'Mr Glover's opinion, is conclusive. With regard to companies, members are Btill hoping that something more may be done to relieve small shareholders, who bear a heavy rate of tax on a small income, merely because their shares are held in a big company. Influential deputations of business men from all over the Dominion havo been pressing the Finance Minister about this matter during the week. It is anticipated that he will modify the proposal to the extent of providing that diminution of exemption from income tax shall begin in the case of small shareholders at £4OO instead of £3OO. Some members appear to be hopeful of greater modification; but it is generally thought _ that any greater modification would too seriously lessen the amount of revenue which must be found. ' Any alteration must receive special .legislation, for the Bill has been passed. The amusement tax gave rise to criticism, which did not appear to be forcible or serious. Many to whom the word "amusement" implies something amusing will be surprised to hear that it includes agricultural shows. There is no tax on the 6d ticket, so the Labour members' protest loses some of its force. Mr Isitt did not mince matters, and pooh-poohed the idea that people go to such places to drown their eorrows. Dr Newman referred to those people who take their pleasures sadly—people who frequent the galleries for the purpose of hearing politicians talk, — jtery rightly escape the tax. Mr Wilford's remarks on the subject of oigarettes apparently bore fruit, and the tax on cigarettes ,was imposed. The resignation of the Efficiency Board has been accepted. The board is to bo reconstructed, and tho new personnel will include a Minister, thus defeating the intention of eliminating political influence, which was an important consideration when the board was in process of construction. jMr Horneby has no luck. When he offered to procure butter at Is a lb he found that he had had his leg pulled. The Prime Minister is still looking for that butter, all of which he offered to take. Now Mr Hornsby takes a dramatic leave of tho Government, because the purchase value of a sovereign, he asserts, has fallen to 13s. This, too, while in the Prime Minister's pocket was the Government Statistician's calculated result that the rise in cost on standard commodities is from 20s to 23s 7|d. His attack on profiteers synchronised with the Board of Trade's report showing to how large an exent the cost of living has been raised by causes operating outside tho Dominion. ' He should have learnt before now how much exaggeration lessens the value of what might otherwise be useful criticism. His suggestions to appoint a food controller met with some support, and may be considered. Everyone knows that tho cost of living must rise, but wants to bo sure that it does not rise more than is necessary, and most people are convinced that it has risen too much.

On Thursday Mr M'Combs had much to Bay about war profits, the abolition of the tax on which ne' regrete. He looks longingly after tho 20 million war profits which, he says, have been made. He and Mr Poole made merry at the expense of tho farmers, who complain of the rise in the price of fencing wire as increasing costs of production. They said it might be supposed that sheep eat barbed wire. The House is settling well into its stride, and it has been decided that after next week it will meet on Mondays. Old hands say that tho session will go on till the end of October; but others say not. When tho Railway Estimates were under consideration the Minister's cheerful smile annoyed Dr Thacker, who was called to order by the Chairman. Suburban services, or the want of them, are ths_ chief bone oi contention; also Colonel Hiley, against whom some very bitter criticism has been levelled. It is not clear whether it is the general manager's £3OOO a year or his title, or his services to the Defence Board, which are most highly disapproved. Dr Thacker's attack was on personal grounds ; but Mr Wilford went in for that faint praise which damns, saying that Mr Hiley had done verv well for the railways, considering how little of his time he was able to devote to them. Mr Veitch attacked tho whole railway administration, including the Minister. In reply. Mr _Hemes defended Colonel Hilcv, extolled his various virtues, and explained that he had been lent to the Defence Department in their need. Dr Newman, in a humorous speech, referred to Sir Eric Geddes—before he was a civilian

and an expert on railway matters. He has been borrowed by the Admiralty and by tho War Office, and holds the courtesy titles of Major-general and Vice-admiral. He also wears the gold lace to which Dr Thacker and others so strongly object. # Mr Hemes says tho department cannot increase the number of trains, and he told Mr T. K. Sidey that there are more people wanting to travel on Saturday nights than on Friday nights. The department must consider tho numbers; also the men whose work is on tha train, and who would find a very long day on Friday more trying than a similar day on Saturday, tho reason being that Sunday follows the Saturday. He naturally expressed a warm interest in the body of railway servants, and regrets the fact that so many of them arc leaving the service. He referred to the 6000 odd who have gone to the war, and to the patriotism of all tho railway men, and to the members who still must go, unless they are exempted, in -which case only could an increase be made in tho number of trains. The railway policy just now is the win-the-war policy. Women could not be employed in great numbers on the New Zealand railways, because the conditions here are so different. After a long and protracted denumbers; also the men whose work is on bate the Railway Estimates were Dassed. It is evident that there are many members in the House who consider that a change should be made in tho railway administration.

Later in the week the Finance Minister assured the House that it is quite impossible to increase the old-age pensions at present. He explained why. Those who hold property worth £340 cannot have a pension unless heavier taxation is levied. The Defence Minister has stated that the first ballot of tho Second Division men is to be drawn next month, and that they will have three months between the ballot and being sent into camp. At present the law does not permit medical examination before the ballot. Tho law may be amended, but tho Government _ has not yet decided on its policy in this matter, or in the matter of pensions for men of the Second Division. It is reported that the Government is very well aware of the feeling of tho public in regard to these pensions, and that the Bill to be drawn up will receive very careful consideration. It is confidently expected that the pensions will be as generous_ as possible, and that families of Second Division men will also be spared all possible financial worry during the absence of the bread-winners. No other policy will satisfy the House or the public, and if no other way can be provided, there will be strong agitation to decrease the surplus which is piling up " for safety." The unfairness to the individual of the tax on companies is a favourite topio of conversation. It is still believed that pressure will be brought to bear on Sir Joseph Ward, and that ne will use his wits and seek advice, and find a way to relieve the man and woman whose small income is often taxed at the rate of that of the big man.