PARLIAMENT

Southland Times, Issue 17786, 15 July 1916, Page 5

PARLIAMENT

FRIDAY, 14th JULY. HOUSE OP REPRESENTATIVES. (Per United Press Association.) WELLINGTON July 14. THE FINANCE BILL. After the telegraph office closed a number of amendments moved by the Minister in part VI of the Finance Bill, dealing with stamp duty, were agreed to without discussion. Part VI, referring to the Public Trust Office and Post Office Savings Bank deposits. and part IX to social insurance, were passed after brief discussion. Replying to Mr McCombs, Sir JOSEPH WARD said lie could not do it now, but later he would get a report on the working of the National Provident Fund as between local bodies and its employees. The Bill was reported from Committee with amendments, agreed to, and the third reading set down for next sitting. The House rose at 3.12 a.m. THE THIRD READING. SIR JOSEPH WARD'S SPEECH. The House met at 2.30 p.m. Sir J. G. WARD moved the third reading of the Finance Bill. He thanked members for the treatment accorded to what was a difficult BUI. He read a statement of the finances of the country for the quarter ended June 30th last, showing an increase in all departments but tlie Fire Department, which amounted to £343,459 compared with the corresponding period of last year. Among the increases was Railways, from £952,000 to £1,106,000. There was a decrease in expenditure of the three months of £7446. He said the figures were very satisfactory and pointed to a considerable balance on the right side. With £260,000 invested in London, and with the new taxation he looked to having on hand for war purposes at the end of the year six and half millions. Ho hoped what was being done by the Government to meet the altered circumstances created by the war would be appreciated by members and the country. He quoted statistics of the wealth of the dominion, showing that New Zealand was one of the. safest countries in the world in which to invest; Referring to the proposal to issue debentures for land for soldiers he Justified this on the ground that it was necessary to provide for local requirements. The war loan would be raised free from income tax up to per cent. He impressed upon members the importance of the Government doing nothing that would give an incentive to capitalists to raise rates of interest. Ho pointed out that the issue of £5 bonds had not been successful, which ho attributed to the fact that people would not lock up monies for It years at 4% per cent. He moved the third reading of the Bill. Mr'T. M. WILFORD (Hutt) objected to some of the statements in Sir J. G. Ward’s address. He said that wealthy men would not subscribe to their loan at 5 per cent. He would take their money. He said our system of taxation was not based upon any scientific principle. It seemed to him that our taxation was all in favour of the rich man. Mr C. A. WILKINSON (Egmont) favoured an increase in the graduated tax so as to assist in bursting up large estates, thereby obtaining land for settlement . which could not, owing to high prices, be secured at present. He generally approved the Bill and thought that finan. cial administration was quite safe in the hands of Sir J. G. Ward. He hoped after the war that a complete system of taxation would be proposed. Dr NEWMAN (Wellington East) said the way the Finance Minister had handled the Bill had been most satisfactory. He particularly approved of the reduction of the tax on smaller incomes from one shilling to sixpence. He thought any regulations to prevent the export of capital would be dodged. Mr J. A YOUNG (Waikato) said that as the Government had power to take land for soldiers on debentures on which they paid 5 per cent, the natural corollary in his opinion was that a similar course should apply to money . Messrs WALKER and PAYNE continued the debate to the dinner adjournment. EVENING SITTING. On resuming at 7.30 p.m., Mr J. PAYNE (Grey Lynn), continued the debate, dealing in the main with banking clauses of the Bill. He urged the Government to make use of the twenty millions of depositors’ money lying in the banks, instead of borrowing money at high rates of interest and paying heavy charges in London. Mr R. A WRIGHT (Wellington Suburbs) said the BUI would give a very great measure of satisfaction to the people of the dominion. Mr j. McCOMBS (Lyttelton) criticised the National Government for declining to take steps to reduce the cost of living. He said it had been the most arrant failure that had ever held office. Mr G. V. PEARCE (Patea) said the cost of living in Australia under a Labour Government was greater than in New Zealand, which he thought was an answer to the continued references to the failure to reduce the cost of living in the dominion. He regretted that no attempt had been made to put a tax on the extravagance of the people on amusements, picture shows, football, horse racing, liquor, and motor cars. Mr P. C. WEBB (Grey) said he took exception to the Bill because large landowners were not called upon to pay their fair share of taxation. Many young men who would make good farmers could not obtain land owing to the high prices. Mr L. M. ISITT (Christchurch North) i protested against the attitude taken up by a small group of members who were continually charging other members with not being as patriotic as they were. He was tired of it and wished to record his protest against the wearisome reiteration of arrant nonsense. There were men In that House who had worked for the good of the masses when the member for Grey was in his swaddling clothes. Mr W. T. JENNINGS (Taumarsyiui) drew attention to the high cost of living so far as settlers in outlying districts were concerned. Mr A H. HINDMARSH (Wellington South) appealed to the House to deal earnestly witli the rent question, which was becoming such a vital matter to many people. He regretted that the Government blocked Labour members in introducing a Bill which endeavoured to cope with this growing evil. Sir J. G. WARD, replying, said that the effect of the repeal of the mortgage tax would be to help the struggling mortgagor. He pointed out once more that the Government were not dealing with party policy measures. That was why a group of professed labour members failed to appreciate the true position. The all important work was to obtain the money required and the responsibility of the Government was greater than that of any member. He ridiculed the statement that a large sum could be secured by reducing exemptions from income tax to £l5O. He said he regretted to see in three cases at least evident attempts made to score off the bill on party lines. He moved the third reading, which was agreed to on the voices and the House rose at 11 p.m. until 7.30 p.m. on Tuesday.