HOUSE OF REPRESENTATIVES.

Wanganui Chronicle, Volume LX, Issue 17075, 31 August 1917, Page 5

HOUSE OF REPRESENTATIVES.

(Per Press Association.) WELLINGTON, August 30 The House met at 2.30.

THE MILITARY AGE.

Mr McCombs asked the Premier how a Bill providing for the conscription of youths'aged nineteen, was printed if, as he had declared a few days ago, he knew nothing of the proposal. The Premier said he would like to know where the hon. member got that Bill. Such a Bill could not be got by honourable means. ■ •■- •

Mr McCombs: Perfectly honourable, so far as I am concerned

The Premier: There'is only one way such a Bill could be obtane-d, and that is not an honourable way. I would like to know where the member got it. Mr McCombs: I will tell you to-mor-row.

Continuing, the Preritier said he adhered to the statement he made a few days ago. Cabinet had not then considered the Bill, r..nd he did not know what the position was. Cabinet had not yet considered it, and it would not be dealt with till the House had settled the question of shortening the hours for the sale of liquor.

FINANCE BILL AMENDMENT

An amendment to the Finance Bill was introduced by Governor's Message. Sir Joseph Ward explained that tha amendment gave power to companies and public bodies to invest in the war loan without liability to prosecution.

THE RAILWAYS REPORT.

The Hofi. Herries laid on the tablo the annual report of the Railways' Department, and also the report of the superannuation fund.

FINANCE BILL

Sir Joseph Ward formally moved the second reading of the Finance* Bill. . Mi- Wiliord said il was impossible fo<any member to iullv discuss, in the tune allotted him, all "the points in this remaijkablo measure, which amounted to an epic in legal draftsmanship. The speaker entered upon a highly technical analysis of the various clauses, approving of the relief given to small shareholders m companies. He described the clauses enforcing contributions to the loan as- amongst the most ingenious ho had ever read, and for which the National Cabinet deserved credit. Mo altogether commended the wide powers of discretion given to the Commissioner. He, could not Understand wiry- the Government would hot adopt his suggestion to collect the duty on cigarettes. All that was necessary was to compel the merchants to attach a penny, stamp on each box. Then* the country would get the benefit of the full amount extracted from people, part of which was now going to the merchant, who would be making a profit on a war tax. This change he estimated would be worth to the Dominion £100 . UOO per annum.

Mr Buddo thought it a matter for congratulation to the Dominion that the Minister of Finance had not found n neessai-y to reduce the exemption limit of the income tax, as 'had been done in Australia. He was surprised that the income tax was not made higher, but in time of war he was conndent there would be no objection on the part of the people to pay almost any amount of taxation so that a would help to save the Empire. Sir John Findlay pointed out case* of hardship likely to arise as the result or tne operation of the compulsory clauses. The Court of Appeal under I this exceptional legislation was notsatisfactory. Ho asked that it be not the. Commissioner of Taxes alone, but two other officers associated with him The method.of taxation applied to the Government Life Office and other mutual lite assurance companies, was not quits .equitable to the mutual edmpanSVn le *} ustr a]ian Mutual paid Si - k and the Government Life Office £11,939. Had the taxation ap! phed' to both offices been the same, the G ™ Office Avolud have Wrt £d 6,900. The proposal made in the Bill _to tax mutual life assurance companies on the whole of their investments was calculated to make them in- | solvent, and as they were not profitmaking institutions they were deserving of a better fate. He hoped this •section of the Bill would be reconsider-

■JJ 16 House resumed' at 7.30. IV 7?- llum contin"Gd the debate on the finance Bill. He generally approved of the proposals, but urged an increase m the beer duty to sixpence per gallon, as calculated to simplify tue system of enhancing the revenue. Mr Anstey did not agree with some ot the means adopted to secure revenue as in some instances the shoulders least able were made to bear the burden; but on the whole he regarded the Bill as the first real attempt to make wealth meet its just responsibilities.

Mr Pearce objected to men with a mortgage- being brought under the provisions of the compulsory clause. Taxation of mortgages was a tax on a- liiaivs debts whije under the hind and income tax theiv was a, dual taxation, the same capital sometimes paying twice. Otherwise the taxation was'a. great improvement on that levied last year. _ Mr Lee suggested that as this was 'a time of compulsion the House should compel banks to lend money to private investors in the War Loan, not for two years, as proposed in the Bill, but for four years. He hoped the beer tax would be made sixpence per gallon all round.

_ Dr. Newman thought that in times like this as little money as possible should be wrune; from the people. Ho did not object to a. small loan, but, considering that the Treasurer had tea millions stocked ui> in London, he thought thai; should"be used instead of raising this enormous loan. If this Bill were passed, the Treasurer would acncnmlate a surplus 'of eght millions in two Years, which could not Be justified. He disagreed with the tea tax. and advised the Minister to enhance the Treasury by economy, which was something the Government never tried. The rlebate was continued by 'Messrs. Tsitt, Brown, Parata, Field "(Otaki)j Poole, and Anderson; ' , At 1.1.M the adjournment of the debate was moved by Mr McCombs, and the House rose.