HOUSE OF REPRESENTATIVES.

Southland Times, Issue 4701, 1 August 1883, Page 2

HOUSE OF REPRESENTATIVES.

Tuesday. 31st July. The House met at 2.30 p.m. Replying to questions, Ministers said — That the iron work of the Clarence bridge was now arriving in the colony. The : plans and specifications were also received, and tenders would be called for at once for its construction. — New Zealand blankets and flannels were largely used in the gaols and industrial schools in the colony, and so was New Zealand coal. — Telegraph forms could not be printed in the colony at anything like the London prices as ascertained bytenders. — The Government were favorably disposed to reduce tte railway freight on linseed to the same as on the other grain, but grass seeds were not included in the reduction. — The Government would quarantine all imported dogs for six months as a Bafoguard against hydrophobia. The WaimeaHigh School Bill (Steward) and Wanganui Bridge Bill (Johnston) were read a first time. The House then went into Supply, when a resolution authorising an imprest advance for another month was agreed to. Major Atkinson moved the second reading of the Property Tax Bill, He did not intend to make any speech, but Bimply to afford an opportunity for Sir George Grey and Mr Montgomery to bring on a discussion aa to the desirability of a land tax as against the Property tax. Mr Montgomery thought this time was the proper one to consider whether a property tax was a fair and just one in its coincidence. He did not think it was. It would not be necessary if land improved by railways and public works was charged with its fair share of taxation to meet the interest on the cost of such works. The present law unfairly taxed public companies, many of which were highly beneficial to the colony. It was a direct tax on the industry of the country. As soon as men united their capitals to cherish any industry they were immediately taxed. It also taxed improvements: even in their insurance these were taxed through the insurance companies. It was an unjust tax on consumers and industry, and should not be sanctioned by the House. Land should be fairly taxed, and not be allowed to be held by a few who stood in the way of its more profitable occupation ; for after all it was the property of the State, and the State should make them improve it by a tax. It should be taxed apart from the special value given it by public works, and also specially in regard to the latter. He would also tax land less the mortgages upon it, and he would not tax improvements. He would not tax land with the coat of public works which had not directly raised the value of it ; a modi rate . income tax^ehould also be imposed. He thought the colony was now standing on the brink of financial disaster, owing to : the constant drain for interest which was going out of the colony ,amounting in all to : L 3,547,000, he estimates, on both private and public indebtedness per ] annum. The property tax was to be raised. < The cause was that there was a deficiency ( in the ordinary revenue of L 102,000, with- ■> out flic Supplementary Estimates. This 1 was omng to unsound finance, and it was i + ime there should be reform in order to ] avert disaster. It was because he felt tbisthathe opposed this bill. . Mr Dargaville opposed the bill as unjust j. and impolite. He condemned the general g financial policy of the Government, and c accused Ministers of regulating that policy j to the requirements and interests of the • t Bank of |fe w Zealand, instead of those of j, the people oi the colony. Major Atkin- 0 eon was not tfce treasurer of the colony, c

-he- was only the accountant: the willing tool; of a financial ring, of which the Premier had, since the consolidation o£ loans/in 1867, been one of the chiefs, and iwhibh governed the country. It was a to find within the last few days, 'the Premier's name as a director of the new loan company established by the ring. The i present Jaw.gave most unfair ad vantages to saoh companys. He strongly advooated a land tax as fairer and in every way preferable to a property tax. The Government, he knew, would carry the billp but. it^was* because they* were^supported by class legislation, public wrongs, financial terrorism', and political corrup-. Mr Turhbull urged the Government- to reduce the expenditure rather than increase taxation. He would vote against the bill. Interrupted by the 5.30 p.m. adjournment, i--' Evening Sitting. The Hojise resumed at 7.30 p.m. Major Atkinson, who had been called on to reply just before the House rose,' said ha was anxious not to take the House by surprise, and would give way if .any member wished to speak (criea of no!) He regretted that the. threatened debate on finance and taxation bad so Bpeed'ly collapsed, and ; thought it showed Mr Montgomery's unfitness to lead even a section of the; Opposition. d Mr Dargaville ought, he thought, to feel ashamed "of the speech he had made. As to the charge made by Mr J> DargavUJe against the Premier and hfmself, in relation t:p, the loan Consolidation Act, 1867,' he .pointed out that he himself had ' yoha4.'3ti3adily against that bill. The Premier was not then in either House, and had nothing to do with tha Act, and had received, nothing for it. The statements to the 6ontrary were absolutely untrue, and if jMn Dargar ville would notr.moyefpr.a Select Committee to enquire into tiuth of the allegations, he would' do. it. himself, r The two clauses of the Land Tax Act which Mr Dargqy,ille had quoted, and had based his arguments of corrupt ,- favoritism on, had long been repealed, and were not in force at all. They were put in. the original Act to attract foreign capital,? and. -after full consideration by the House, and when, in operation it was found ; they were not required for the purpose, they were repealed and the loan companies had to pay as all others had. That disposed : of Mr Dargaville's statements on which he had staked Mb reputation for common; sense. Had the '"'local' quarter of a million loan been floated, most of it would have been taken up by Post Office Savings Bank depositors, w ; ho would then have got 5 per cent, instead of 4£ for their money. Had not the million loan been raised there would have been nothing to carry on with on 31st Mar^h. He knew of no means of getting better banking arrangements than at present or he would adopt them. He would never again consent to hand over the colony to the associated bankß, as that would make them mere governors of the colony. The real safety lay in dealing j with one bank and being able to change it if necessary. He entirely disagreed with Mr Montgomery's figures, and did not think the colony was paying more than two and a half millions as interest outside the colony. The stocks of goods now in bond were unusually large, and there was no reason to believe that the Customs this year would fall off. The revenue last year was not below the expenditure ; in fact, actually taxation bad been relieved, and charges borne by revenue instead of loan. This colony had never paid interest out of borrowed money, and he challenged Mr Montgomery to prove his statement to this effect. Mr Montgomery said he would prove it. Major Atkinson continued, defending the fairness of the Property Tax as compared with a land tax and income tax. On a division, the bill^was read a second time by 49 to 33. • Ayes (49)— Allwright, Atkinson, Beetham, Bryce, W C Buchanan, Connolly, Dick, Dodton, Driver, Fergus, Fitzgerald, Fulton, G W Green, Hamlin, Hobbs, Hurst, Hursthouee. C J Johnston, R W Johnston, Kelly, Bee, Leveafcam, F W McKenzie, Mason, McDonald, Mclll* wraith, McMillan, Mitchelaon, Morris, ftlunro, Peacock, Pearson, Petrie, Postlethwaite, Bol» lest on, Shepherd, Stevens, Button, Butter| Hwanson, Tawhaio, H Thomson, Tomoana, Trimble, Whitaker, J B Whyte, J G WuVon, and Wright.— (One short.) Noes (33) — Barron, Bathgate, Bracken* J C Brown, J. Buchanan, Cadman, Daniel, Dargaville,: De Lautour, Duncan, Feldwick,. Fish, George, Grey, Harris, Holmes, Hutchison, Ivess, Joyce, Macandrew, McDonald, J McKenzie, Montgomery, Moss, Filliet, Seddon, Hheehan, Shrimski, Smith, Te' Wheoro, J W Thomson, Tole, Turnbull, W , White, (one over). ■ Some discussion took place' on the motion fixing the committal of the biil, Sir George Grey complaining that the Govern* 1 raent had stifled the debate by no one on its side speaking. After remarks from Messrs J. McDonald, Bracken, M. W. Green, Hursthouse, Lerestam, and others, the bill was ordered to be committed on Thursday. Mr Dargaville said that he would accept Major Atkinson's challenge, and move for a committee to enquire into the loan con- - solida'ion transaction. The Bankruptcy Bill was, on Mr Connolly's motion, on a division of 39 to 27, recommitted to further consider clauses J6l and 139. Clause 61 was restored to its form in the original bill, on a division of 34 to 28. Clause 139 was amended to give priority of claim to assignees' costs. Several further amendments were made in the clause, and the bill reported as amended. The Bills of Exchange Bill and Married Women's Property Bill were further considered in committee. The House rose at 12.5 a.m.