ANOTHER DIVISION.

Auckland Star, Volume LX, Issue 230, 28 September 1929, Page 12

ANOTHER DIVISION.

AMENDMENT REJECTED. «A POLITICAL FAKE," SAYS MR. WILFORD. INDEPENDENTS WITH REFORM. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The Leader of the Opposition divided the House of Representatives late yesterday afternoon on another important amendment designed to refer the taxation measure to the Public Accounts Committee to take evidence. This was described by the Minister of Defence as '■ a political fake"' to obstruct the legislation, and on a division it was defeated by 45 votes to 27. The Labour members supported the Government, but three Independents, Messrs. Poison, Rushworth and Wilkinson, reinforced the Opposition minority. Mr. Coates, at the conclusion of a speech in which he strongly urged the need for caution in the face of the high costs of production and the heavy burden of local rater- on farmers, asked the Prime Minister if he would allow the Land and Income Tax Amendment Bill to go before a select committee of the House before it proceeded further. To this the Prime Minister said "No" iii. a quiet tone of voice. "No Hurry, No Rush." Mr. Coates observed that there was a precedent for taking this course, since a previous bill aiming at much the same nurpose as the one under discussion had been referred to a select committee. "The Prime Minister," he said, "has promised to receive representations concerning this bill, but they will be made in private. It would bo better that those representations should be known to members. The committee should have the mht to hear the representations. There should be-no hurry and no rush. Furthermore, if representations are heard in private we r-hall not know whether he intends to «ive effect to the objections. The affected parties should have the right to make representations." The Prime Minister: I have given it to them right through. Mr. Coates: I don't deny that. Howover, there is no reason why what I suggest should not be done. Little headway can be made on this bill for another week. We were given t<* understand that. The Minister of Justice (tV Hon. T. M. Wilford): Next Tuesday or Wednes:lav was what was said. The Prime Mmister: I haven't been -sked to extend it to Wednesday by anyone. The Basis of Taxation. Summing up his objections to the bill, Mr. Coates said that in the first place the true basis of a tax should be ability to pay. Ability to pay could be ascertained only through the income tax, whereas the bill was so designed that in a large number of cases this principle would be ignored. Secondly, in so far as a progressive land tax was required to promote subdivision it should be applied only to such properties as were classified as suitable for subdivision, and after reasonable notice had been given. Thirdly, the bill would seriously affect the security of land values, and render farmers' finance more difficult. Fourthly, a grave injustice was inflicted by the bill, especially in those cases in which the tax would appropriate the whole annual value of a property, apart altogether from local taxation. Mr. Coates said that there was one last point, the graduations should start at the top and come down, and not start at the bottom and slaughter the small man. The Minister of Lauds (the Hon. G. W. Forbes): Would you have the lowest on top? Mr. Coates: That cannot be seriously suggested. Mr. F. Langstone (Waimarino): Oh, they would have to stand on their heads. Mr. Coates then moved his amendment, that the bill should not progress further till its probable effects had been investigated and reported on by the Public Accounts Committee, after taking evidence. Mr. A. M. Samuel (Thames) seconded this amendment. He said that lie intended to vote against the bill in its existing form. All the Labour speakers had found some fault with it. The Rev. Clyde Carr (Timaru): It doesn't go far enough. Mr. Samuel: Some say that, and others say that it goes too far Mr. E. J. Howard (Christchurch South): Who said it goes too far? Mr. Samuel made no reply to this. "A Political Pake. ,, The discussion was continued by Reform members, who were somewhat restricted by the ruling of the Speaker that they must confine their remarks strictly to the reasons for referring the bill to a committee. The only Government member to speak was Mr. Wilford, who occupied only a few minutes. He described the amendment as one of those delaying motions for the purpose of hindering the Government in passing its legislation. Reform Members: That's wrong. Mr. Wilford: If it Avas a genuine amendment, why was it not moved on the first day? Let that sink in. Why did you debate it for days and then move to refer it to a committee ? It is a political fake. (Cries of dissent.) "Members know quite well," continued the Minister, "if they can bury this bill in committee this House will never see it again, and I hope new members will not be hoodwinked by this move,"' Mr. Coates: That is all incorrect. Mr. F. Waite (Clutha), the next Reform speaker, suggested that it illbehoved the Minister of Defence to lose his temper. Mr. W. D. Lysnar: And discredit his committee. Mr. A. Hamilton (Wallace) declared that if the Minister was going: to put over that sort of talk they would fight. The request was genuine, and debate had followed a request that the matter be investigated, though this was declined. The House had been 13 weeks in session and the "political fake" was in the first ten weeks, when it did nothing. "If tho=e tactics are to be used wo will fight," concluded Mr. Hamilton, "and wo don't care what the consequences are." The House divided on the amendment, which was lost by 45 votes to 27, and the bill was read the second time on the voices.