HOARDINGS IN THE CITY.

Star (Christchurch), Issue 20076, 12 October 1920, Page 2

HOARDINGS IN THE CITY.

_ CITY COUNCIL OBJECTS. , Proposals by thfe Government to tax debentures issued by local bodies were condemned by the Christchurch City Council last evening. , The Mayor (Dr Thacker, M.P.) said that the Land and Income Tax Amendment Bill would be discussed in the House this week in committee. He believed that there would be a. strong vote against the proposed tax on debentures. It was also expected that the tax on trading departments would nob be passed. : After considering n. letter on the same subject from the Auckland Council, Councillor J. A. Flesher moved; “ That this council strongly protests against the proposal of the Government to compel local bodies to collect an income tax of 2s 6d in the £ on the, interest payable under debentures issued by local bodies, being ; of opinion that such a provision would prevent local bodies from raising . loans on favourable terras, 1 and have the effect of seriously prejudicing • their financial arrangements for local works and enterprises.” Councillor Flesher said that the proposal wa< another illustration of the way in which the Government shirked its duties. The proposal would lead to injustice. It would not work equitably. There wefe many small investors who would be glad to buy city debentures, and they would be- taxed, though not liable to income tax. The Mayor said that the Prime Minister had pointed out that there was a hardship clause. Councillor Flesher said that he could hardly accept that. The council should make its protest plain. Councillor J. W. Beanland, in seconding the motion, said that under this threat .people were not'investing in City Oil u noil debentures. The result would be that monev for necessary local works would be restricted. Councillor H. T. Armstrong said he knew that the scheme would play into the'hands of the moneyed classes, hut the whole country w'as run in the interests of the, moneyed classes. The Prihie Minister would not be in powerThe Mayor: No politics, Councillor Armstrong, , QounciUor'F ; Cooke said that he reearded all ‘ interest as iniquitous, though he.was compelled to pay it himself. ,

Tim ■ resolution ivas' carried without dif-pept, • t