PAYMENT FOR LAND.

Sun (Christchurch), Volume VII, Issue 2031, 18 August 1920, Page 10

PAYMENT FOR LAND.

BY ISSUE OF DEBENTURES. HOUSE EXPRESSES APPROVAL. [From Oar Own Parliamentary Reporter.] WELLINGTON, August 17. Under existing legislation, the Government has the power to issue debentures at from 4* per cent, to 5 per cent., in payment of compensation or purchase money for land. Because Mr J. McCombs (Lyttelton) was afraid that some of the debentures might be issued with interest free of income tax, he today divided the House of Representatives on the clause proposing to extend the term of that legislation by a further six months. The Prime Minister (Rt. Hon. W. F. Massey) said that he was not asking the House to agree to anything of that sort. If there was not already a guard against it, such guard would be introduced in later legislation this Session. Since he had become Minister of Finance, there had been no transaction where land had been paid for by debentures free of income tax. Mr G. W. Forbes (Hurunui) asked if the rate of interest of the debentures would be increased to compensate for the loss of this concession. Mr Massev said that the legislation ■would be in the Loan Bill when it came down, bt;, for the information of the hon. member for Hurunui, who seemed to think that 5 per cent, was an unl eard-of rate of interest now, he < mid say that, since the House met this Session, they had raised son e hundreds of thousands of pounds tt 5 per cent., not free of Income tax. „ , ~. An hon. member: You do better ► .Jhan local 1 'idies then! The clause was retained by 44 Votes to nine.