TOWN V. COUNTRY TAXES.

Wanganui Herald, Volume L, Issue 14700, 3 September 1915, Page 8

TOWN V. COUNTRY TAXES.

LEGISLATORS RAISE A CONTROVERSY ARE, FARMERS PENALISED? FINANCE MINISTER’S STRAIGHT SPEAKING. (By, Telegraph.—Special to “Herald.”) Wellington, September 3. The presentation of a return showiug the relative taxation of country landowners who will pay income tax ~ and ordinary laud tax raised a town versus country issue, which the House debated yesrfiiday afternoon with a good deal of acrimony. It foreshadowed a long Budget controversy, members distinctly taking sides. They were warned by the Fihance Alini-ter that large sums bad to be raised, and there must be no faltering and fooling over the situation. The reason why the return bail been prepared -was explained by Sir Joseph Ward, who said nomc members wished to know why the Government proposed that the increase in the graduated land tax nad not applied to town lands. The return rndicaK-d actual payments made in towns upon land and income taxes, and showed that- the amount paid by people in the towns under the two taxes was tremendevsy heavier compared with the graduated land tax on couutvy lands. Ifr Pearce (derisively,)—“ Poor townspeople .Sir Joseph U aid—“l am not expressing an opinion. The graduated tax was," lie continued, “introduced to burst up large j estates, and the reason it did not apply ’ in the Budget was that they could not | burst up town lauds. If the latter ' taxed in this way it would in‘an heavier . rents, aud the community would have to pay more for its necessaries. The income tax was very light upon country people, as the return showed. The Home would t probably be surprised to know that only ■ two of its members would come under the ■ country land aud income taxes as proposed in the Budget, and lie could give hundreds of cases of wcil-to-do farmers who would not contribute.” Mr Fletcher—“They won’t make returns.” The Minister—Officers will be sent out at the proper time to get information which will obviate calling upon many farmers to make returns. Tbo country required considerable sums of money, and it was perfectly futile for sections of tli<> community to take exception to the necessities of the situation when the country 'oquired and demanded that something be done. (“Hear, hear.”). “There is no uso paltering and fooling the thing,” continued .Sir Joseph-Ward. “It has to lie done by every secHon of the eommunitv. aud the sooner we understand that the b"tter.” It mifflil be that, at the end of this year even more would lie asked, aud the Government bad to hold in reserve the possibility of spreading the system of obtaining money in larger suras for war purposes. The clash cf opinion in the ensiiinsr dis-cus-ion reached its climax when Mr Birch protested against what, he termed offen--ive leferences by a Labourite towards country members. A claim by Mr Pearce that the farmers had sacrificed a good deal over the sale of their meat to the Imperial Govern aeut drew an important- statement from hj- Prime Minister, who said the prices 1 beef ranged from 4Jd to 4d per lb, but hese were fixed with due regard to the '"act that the seller was entitled to the hide, skin, aud offal. What were hide; vor*ii to-day. He thought about £2 10s. while .-hcepikins brought 7s 6d to 10s. (Tie meat price was fixed on -the basis 1 hat the owner would get about 42s per !00!b out of the hide aud offal. The armer never pot such a good price as he had onioyed since last March. He had i regular steady market at a reasonable profit, and bad been entirely relieved of ‘he trouble over freight scarcity. This had been overcome by the Imperial Transport Board, otherwise there would have 'h-cu -iich an extreme scarcity of insulated '■onuage that it would have been almost Impossible to got New Zealand produce ;o London. Mr Hiudniarsh—“The farmer would not hav? got 2d per lb.” The Prime Minister went on to sav tha* the Imperial authorities commandeered ins’dat-’d tonnage and paid a 1 l-8d per lb freight, whereas the freight prior to March last was Id to 9-16 d. .Since the taxation proposals had been announced he had seen many city and country people, and he was not only gratified but surprised and astonished at the patriotic wav in which those who would pay heavily , had received the proposals. In concluding the long discussion. Sir Joseph Ward declared,, iu reply to suggested alterations in the new taxes, that necessity compelled the Government to sav “No.”