LANG'S LAST BILL

Wanganui Chronicle, Volume 75, Issue 125, 30 May 1932, Page 11

LANG'S LAST BILL

i “CAPITAL LEVY” PLAN ONE-TENTH OF‘ MORTGAGES SCHEME THAT MISCARRIED MB. STEVENS’ CONDEMNATION. In the Legislative Assembly of New South Wales Just Wednesday, the Premier, Mr. Lung, introduced his bill to impose taxation ou all mortgages. It was described by the Opposition as a “capital levy,” and this Mr. Lang did not deny. It contains a number oi extraordinary and drastic provisions. and. penalties for breaches. The Gov- 1 erument estimated to raise £7,000,000 I by the measure within a short period j to meet its obligations under the Fin- i uncial Agreements Enforcement Act. A ; drastic provision of the bill is that the tax should be paid within 14 days oi the commencement of the Act. Mr. Lang, in moving the second reading o£ the bill, referred to the Commonwealth Garnishee Act. He said: — “Certain events have happened, but I pass that by. Owing to this, the moth crs and the children of this State have been without money. Then, again, there are those little ones who have j been taken over as wards of the State, and. various other individuals, dependent upon payment, and who have been deprived of that help tor some weeks past, “All these things were canvassed by tho Opposition. Every member who spoke on that side professed that he stood for the pfiyment of tho moneyThey said they would not argue about tho case. The bill now before tne House will effect a remedy for many oi our difficulties and it will also save the honour of the country. It Mill provide money for the mothers, tho children, the widows and the fatherless i and will provide assistance for those I tor whom the hearts of all decent peo- ! pie bleed—the unemployed of the i State. “This is a Capital Levy.” “This bill is designed to meet the unenviable position in which tho

mother State of the Commonwealth has been placed by the Federal Financial Agreement Enforcement Act. The bill proposes a tax of 10 per cent, upon every mortgage upon land or any estate or interest therein at the date of the commencement of the Act. . . Sir Daniel Levy: This is a capital levy. Mr. Lang; Call it what you like. “The tax,” Mr, Lang added, “must be paid within 14 Mays or within such further time as the Commissioner* oi Taxation may, with the consent of the Colonial Treasurer, allow in any particular case, or any class of case, or generally.” Sir Daniel Levy: A man with £5OO will be called upon to pay £5O in 14 days. It might be the only money he has. Mr. Lung: Where the tax is not paid by tho duo date, an additional tax at the rate of 10 per cent, per annum will be imposed and in tho event of a person liable to -the tax being absent from the State for the period of 14 days from tho commencement of the Act the attorney or agent of such person shall be personally liable to pay such tax. “The tax,” the Premier continued, “is made a first charge upon the mortgage, and if it be not paid by the duo date tho mortgage shall vest in the Crown—(Opposition cries of 'Oh’ and ‘Confiscation.’) —absolutely freed and discharged from all charges, liens, dealings, interests and contracts.’’ Mr. Foster; Robbers! That is what you are. Estimate of RevenueContinuing, Mr. Lang said: “It is* estimated that the tax will produce about £7,000,000, which will enable the State to satisfy the demands of the Commonwealth Government in respect of interest payments and thus remove the crippling embargo inflicted by the Federal authorities upon tho wealthiest and most populous State of Australia. A feature of tho tax is that it is not an impost upon industry, but is in the nature of a levy on the wealthiest section of the community—a section which should not hesitate to exhibit a little patriotism by making a reasonable contribution toward the rehabilitation of tho State, “Only one of two courses can be

taken with, an invader —he must bo either paid out or thrown out. According to our daily newspapers there are some people in this State who believe tho Invading force slfould bo paid out, and as they are people of means, as they are the people who have the gold, the Government has decided to set up for them machinery through which they can put into operation their proposal of paying out the invader. Ten Millions in Cash. The Leader of the Opposition, Mr. B. 8. Stevens, in tho course of his speech in opposition to the bill, questioned whether financial institutions in tho State had sufficient ready cash to pay the £10,000,000 at once; yet, under tho bill, if mortgagees could not pay at once, the Government would enter into possession. He said that %r tho case of one largo insurance company in Sydney 60 per cent, of the income wa> received from private mortgages. That institution would be required to pay nearly £500,000 in cash to the Government in a fortnight. In order to get that cash it would have to sell securities on a depressed market. “We are going to say,” Mr. Stevens added, “to these thrifty people who have made provision for themselves and for their children instead of throwing themselves upon the charity of the Government, 'you must surrender to tho Government a nominal 10 per cent, of your assets, but wo know |’iat in the process of surrender you have to realise upon your securities and we do not car© if you give us 25 per cent, so long as we get it.’ ” Gospel of Revolutionary. “If this bill passes through this Parliament,” Mr. Stevens went on, “it will most certainly be the end of credit in New South Wales. Members who represent country districts will be well advised seriously to consider the position of the landowners. Tho effect on tho banking and insurance companies of a levy such as this is that 800,000 peojCf who have put their savings in the insurance companies and 1,000,000 depositors who have put their money in tho banks will be prevented from providing work for tho workless and sustenance for the unemployed.

“This is but a freak and fetish of a man whose only gospel to-day is the gospel of the revolutionary,” added M‘r. Stevens. “T 1 is a drastic and final attempt on tho part of the Government to recover cash by means that are foul. The Government’s credit has gone. It cannot borrow monev in a

way that other Governments can borrow. Its instrumentalities cannot bor row because the Government’s guarantiee will not be accepted. “In a spirit that suggests it is prepared even to smash the very fabric of our financial institutions the Government says: ‘lf we cannot get the money by means that are recognised a sound according to the canons of British finance, we will adopt this foreign, revolutionary, destructive method of imposing a capital levy.’ It will render more difficult than ever the solution of our State problems. It will strike a blow at credit from which this country will not recover for a generation.' The bill was passed by both Houses, but was nullified by an Act passed at once by the Commonwealth Parliament. On the same day the Lang Government was dismissed by the Governor for refusal to withdraw a circular instructing State officials to disobey the orders of the Federal Government in connection with the operation of the Garnishee Act.