Silence About Rural Bonds

Sun (Auckland), Volume 1, Issue 89, 6 July 1927, Page 3

Silence About Rural Bonds

A MEMBER’S DOUBTS TAXES AND REMISSIONS (THE SUN'S Parliamentary Reporter.') WELLINGTON, Tuesday. Doubts as to the efficiency of the Rural Advances Department were expressed by Mr. E. A. Ransom, Pahiatua, in the House of Representatives to-night, when he complained that a singular lack of information characterised its operations. 9 ‘ What is wrong with this department?” he asked, “none of the Ministers will say anything and it seems to me that if the Farmers’ Unions are not prepared to accept the responsibility of selling the bonds the scheme will be allowed to fall flat.” Mr. Downie Stewart: The bonds have not yet been issued. Mr. Ransom: It is difficult to get anything at all about its operations. The statements of Ministers are so vague that nobody knows 'what is going on. It looks as if this particular branch of the State Advances has been forced upon the Government under pressure, and the Ministers are treating it in such a way that it will fail so that they can turn around and say, “I told you so; I knew it would not be any good. “While in the South Mr. Hawken had said that bonds of £IOO weer being issued for terms of. 30 to 36 years, at 5 per cent, and 5 percent. Mr. Hawken: That report is not quite correct. Mr. Ransom suggested income-tax remission upon income derived from loans issued on rural securities. Banks w'ould rather lend money to local bodies than un rural securities. If the Minister of Finance wished to know' how the remission would be made up Mr. Ransom would suggest that other sections of the community be made to pay such as the farmers whose incomes exceeded £I,OOO net annually. There were many of these in New Zealand in spite of hard times. Unearned increment coiild also be subject to taxation. He cited a case in Auckland where a city property was bought for £52,000, at the rate of £1,575 15s 3d a foot.