PARLIAMENT.

Wanganui Chronicle, Volume LX, Issue 17076, 1 September 1917, Page 5

PARLIAMENT.

HOUSE OF REPRESENTATIVES

(Per Press Association.) WELLINGTON, Aug. 31. The House of Representatives met at 2.30 p.m.

ANSWERS TO QUESTIONS

Replying to M. Okey, the Minister of Defence .said regulations were being drafted to ensure military funerals being given to soldiers who die in the Dominion.

FINANCE BILL DEBATE

Mv'. McCombs resumed the debate on the Finance Bill, contending that the conscription of wealth under the Bill was farcical, "compared with the eon~ scription of flesh and blood under the MihtaryfServiee Act. Mr Payne considered there was no satisfactory way of working out war profits; therefore he "would be glad to see the profits tax abolished. The tea tax was wrong in principle, as it meant placing an extra burden on the producers. The effect would probably be that merchants woul c ] sell inferior grade tea ai, the higher price. Mr Sykes put in a plea for more generous treatment for the men at the front, and for trading companies. Dr. Thacker said the Bill fulfills Ins every desire. It was the finest machine for getting money put up south of the Line. He defended the compulsory clauses, and asked that rigid precautions be taken to prevent the farms of soldiers falling into the hands ot aliens. If it came to a division he would vote against the tea tax

Mr Craigie expressed the opinion that great waste was going on in Government departments, and he suggested a Vigilance Committee to go into the question. He favoured the accumulation of large surpluses in times of prosperity, and defended his proposed conscription of wealtn.

Mr Webb deprecated the agitation in favour of heavier taxation on motorcars, Avhieh had become a necessity to farmers. He regretted that more drastic taxation was not imposed on land for the purpose of bursting up large estates. The method of procuring land for soldiers by purchase was too slow, and restricted in operation. Mr Hindmarsh approved taxation of mortgages, but regretted that in dealing with the land question in general the Government had not been sufficiently heroic.

Mr Ell declared himself in favour of the taxation proposals generally, but would oppose the taxation on tea if a division Avere called.

Mr Wright contended that the compulsory clauses, unless modified, would completely confiscate the Avhole of the dividends of small shareholders in many companies.

Sir Joseph Ward, in reply, said the debate had clearly demonstrated what all knew—-that taxation was objectionable. .It was perfectly natural that those coming under the new taxes should be anxious, and it was not surprising that there should he misconceptions. For instance, there had been a proposal that they should revert to the old system of mortgage tax, but that was impossible if they were going to adopt a progressive land and income tax. The two things could not go together, and he would have to abandon the main principle of his Bill if the old mortgage tax was to be restored. That also was impossible because it was from a progressive land and income tax, plus the Avar tax, that he proposed to get revenue to carry on the government of trie country. He denied that the mortgage tax was a tax on debts. He contended that the land tax could not be collected if mortgages were allowed to go free. It was no use members suggesting that the finances of the country could be maintained by any mere" transfer of systems. If the Avar continued two years longer the people would be very lucky if they did not have to pay very much heavier taxation than asked for in the Budget. He Avas prepared in committee to accept an amendment in the direction of giving married men greater exemption under income tax, on the basis of the number of children, and he also proposed to enlarge the Board of Appeal by associating other officers with the Commissioner of Taxes. He was willing to change the taxation on cigarettes if it was going" to increase the revenue without increasing the cost to the public, and he_ Avas now awaiting a .report on the subject. In regard to the beer tax, he pointed out that the Go\rernment had doubled this tax since it came into office. If the present system of collecting duty on specific gravity Avas not satisfactory, then it could be changed, but if so it would result in heavier beer being breAved. This lie thought a mistake, as the present-sys-tem was adopted with a- view to having light beers brewed, 'in the interests of sobriety. Anyone who supposed that the Government Ayas shielding brewers Avas mistaken. The Government had the fullest information concerning the business, and their proposals Avere based on this. He took the opportunity of denying that he had, or ever had, an interest in any hotel or brewing concern. The position oi: life assurance companies, as mentioned by Sir John Findlay, A\as being looked into. Concerning the position of companies, he assured the House there was no proposal in the Bill intended to ruin anyone, but it Avas not possible to give relief in all the directions asked for. A suggestion had been made to him by which he would forego £630,000 of revenue, but unless that amount could be got from some other source then what was asked for could not be done. He explained that the compuisory clauses were not intended to harass anyone, but it was a necessary precaution against financial shirkers, who, if they exist, could- be dealt AVith. He was negotiating Avith the banks regarding an extension of the term in which they lend to contributors to the Loan, aiid he hoped to make a statement on Tuesday. In conclusion, he declared there was no use in members coming to him one day asking for bonuses to the Public Service, and similar concessions, and the next day demanding that the Government ekercise thrift. It Avas equally futile for people to come to him telling him that they Avould have to borrow money to pay the taxes. Many had to do that last year. What was being asked of them Avas not much, seeing that so far Aye in New Zealand had scarcely realised there was a AvorldAvar raging. The second reading was carried amidst applause.

The House went into Committee of Supply, passed the legislature class, and rose at 9.30.