PARLIAMENT

Southland Times, Issue 17784, 13 July 1916, Page 5

PARLIAMENT

\vednesdav, ];th .iubv. LKGI f? L ATI V E COUNCIL. (Per United Press Association,) WELLINGTON, July 12, The Council met at L.’lO p.m. LOCAL BILLS. The following local bills were read a second lime ; —Wanganui Borough Council Street Access Empowering Amendment: Auckland Harbour Board Empow - ering; City of Kelson Loans Conversion and Empowering Amendment. .Subsequently the bills were reported from committee without amendment, read a third time, and parsed. The Land and Income Tax Bill was considered in committee, reported without amendment, read a. third time, and passed. The Council rose at "ACi p.m. HOUSE OF REPRESENTATIVES. The House met at 2..‘!0 p.m. The afternoon sitting was taken Up with a discussion on the reports of Petitions Committees and Ministers replies to questions. ANSWERS TO QUESTIONS. Replyihg to Questions Ministers said ! Negotiations are still proceeding between the Britisli Board of Trade aaui the Prime Minister with regard to the suggested requisitioning of cheese within the dominion. - That it is not the intention of the Government to legislate in the direction of taking all profits made by racing clubs during the war. That the matter of placing on ttie Supplementary 'Estimates a. snm of money as salary for the Minister of Education will be referred to Cabinet at •an • early date. ’ - That the Government Have complete confidence in the, administration of the Public Service Commissioner. That the Government does not consider that the issue of permits for young men under twenty years of age should be encouraged to enable them to proceed to the United Kingdom with a view to obtaining commissions. That medals of deceased soldiers will be disposed of according to the provisions of the King’s regulations. That if future developments render it necessary branch offices of the Discharged Soldiers’ Information Department will be opened at Auckland, Christchurch, and Dunedin. That the matter of naturalised German Justices of the Peace is receiving the earnest consideration of the Government.

That in consequence of the ten per cent, war bonus to miners, ten per cent, increase on-railway freights, increase in steamer freights, and increase in carting costs, the Mines Department has been compelled to raise the retail and wholesale prices of State coal, otherwise a heavy loss on this year's operations would result. EVENING SITTING. THE FINANCE BILL. DEBATE CONTINUED. On the House resuming at 7.T.0 p.m,, Mr J, A. YOUNG (Waikato) resumed the debate on the second reading of the Finance Bill. He thought the time had arrived when income taxation-should be placed upon a scientific and equitable basis. Larger incomes should be taxed on a graduated scale which should increase in proportion to the amount of the income. He considered that any suggestion to tax the amusements or recreations of the people should be approached with caution. This class of taxation, he admitted, was adopted in Britain, but he did not approve of taxation which would cause people to drop their amusements. Taxation should not be confiscating in character, or a disturber of wealth. He did not think that the proposal to tax excess profits would work satisfactorily, as cases would occur when a man might have to pay taxation on bad debts. He believed that a Board of Appeal would be advisable. The main part of the taxation under the bill would be paid by the wealthy middle classes. It was right that a man above military age with means should pay his full share of the taxation required. Mr .T. McCOMBS (Lyttelton! argued that no man should be allowed to make profits out of the war while others were making losses. He pointed out that merchants were not being taxed on the huge profits made during the first eight months of the war on stocks held when the war commenced. He went on to refer to what he termed the chief failure of the National Government, that was the omission to deal with the reduction of the cost of living, in this respect, he asserted, the National Government had shown little improvement on the wort of the Reform Government.

Mr C. K. STATHAM (Dunedin Central) thought that with important bills lik« that under consideration an explanatory Incmoranda should be attached. He disapproved of a flat rate of five per cent, increase all round, and favoured a graduated scale. He said that the commonwealth taxation was levied, to his mind, on a better principle than the New Zealand Bill. Dealing with part 3, Public Revenues, he thought that too much power was given to the Minister and Commissioner, and looked with disfavour on the issue of debentures. Dealing generally with the bill he pointed out that the House was losing sight of taxa. lion being piled on married men with families. He defended the accumulation of a reserve in London, and advocated severe taxation of luxuries and on user* of luxuries. Mr H. ELL (Christchurch Southi said that in the main he approved of the proposals in the bill, but be objected to the method of raising the income tax which would be more oppressive to small incomes than larger ones. He strongty urged the repeal of the primage, duty. If the country was so flush of money as to give away £ 170.0(H) on the mortgage and £400,000 as a bonus to well-paid civil servants, then it was time we turned attention to some of our social services, and ns a ease in point, increased our ’widows’ pensions. Large profit* were made out of sales of land, and )<• thought there should have been som* increase on stamp duty so that the fetat* would get some part of these profits i* some way. Provision should have bee* made for reducing the cost of living f«C the man on the street. .SIR J. G. WARD IN' REPLY. After the supper adjournment. Sir J. G. WARD, in reply, said that th# taxation proposed was for the war only, and pointed out that the incidence of taxation was not under review, bora* members seemed to overlook this lact. It explained why a live per cent, increas* ou incomes was proposed. There were bound to be anomalies in any system of taxation. He had to remember alway* the amount required to enable our obligations to be carried out. In changing from war to excess profits they had lollowed the example of England. H* pointed out that large stock and station agents, banks, and others, had made larg* profits. What chance, he asked, Mould the taxing department have ol anal> sing these returns ? They would have faded to reach the amount required, and n« could not possibly agree to such.a proposal. In many cases excess profits verm largely due to the war. He felt that several members had nut dealt with th* subject as proposals for war purpose* onlv. He intended to vary the pronopals in committee slightly. He intend,d to give taxpayers the right of independent appeal before a Supreme Court fudge. Ho would ask the committee to remove the clement of double taxation in the bill, and further proposed to have cases of young firms dealt with, and a review of the proposal for the taxation of freezing companies would be provided for. He also intended to give tUo Commissioncr greater flexibility in dealing with the taxation of certain industries, but no concessions would be made except in cases of undoubted hardship. Lie banking proposals in the bill were introduced as a matter of strength to the country. With regard to the sugge.-t-i tax on amusements be pointed out met proprietors were taxed considerably under the bill. Touching on the cost of living question Sir J. G. Ward said that the National Government had saved £300,000 on sugar alone. The second reading was carried, and the House ruse at 11.10 p.m.