THE PRIME MINISTER IN REPLY.

Dominion, Volume 2, Issue 482, 15 April 1909, Page 6

THE PRIME MINISTER IN REPLY.

In reply to Mr. Kettle's remarks, the Prime Minister mado the following statement to a Dominion, representative last ovening:— , " In roferohco to'£he explanation made by Mr. Kettle' in' his statement at tho Chamber of Commerce Conference, with regard to loans of tho Advances to Settlers Department, I ain sorry I havo again to correct his explanation, as it is mado in error. This will bo seen, from tho following report which has been furnished -'to mo tliis evening by Mr. Heyes, superintendent of tho Department: — "'I have tho honrar to inform you that I note in this evening's "Post" that Mr. Kottlo stated that ' he was glad that Mr. P. Heyes, Commissioner of Taxes, had admitted that tho Advances to Sottlors Offico had no moro monoy to lend.' I desiro to ■ say that-1 havo never mado any such state- ■ ment, but have always stated tho rovorso I to bo tho case. The, fact is that tho Depart- ; ment has never ceased at any time doing a : very largo business up to tho present date, I and thero is not any possibility of such a ' position arising'as'that the' Department will 1 not havo any monoy to lend. It is truo that i many applications nto being declined owing - to the fact'that the Department has not ! sufficient funds to meet all the demands upon ' it, but this is quite different from saying • that the Department has no funds.'—Signed, P. Hoyc j 3, Superintendent. "I havo only to add," said tho Primo Minister, " that there can be- no question ) that the'statement mado by Mr. Kottlo ict garding* the financial' position in New Zeai land- to fu w tho Government is con^

cerned, and in relation to the Advances to Settlers Department, is, to say the I least of it, incorrect, and I think, in view of tho correct position, which ha j now been stated, that Mr. Kettle's easiest way out of tho falso position in which ho has placed himself is to admit that he has inadvertently fallon into orror. Regarding Mr. Nathan's statement I have nothing to say at present, but I shall have a good deal to say in connection with the matters ho refers to before Very long. In the meantime I havo only to say that I know thoro is a strong effort being mado by the largo land-owners to oscapo tho graduated tax, which Parliament authorised with the distinct object of ensuring tho all-important policy of tho closer settlement of the lands Dominion." Those critics had argued *hat the system of taxation was driving investments out of tho country, but, continued tho Prime Minister, tho fact remained that this was not so. He instanced the caso of a largo landowner who had bought property in Queensland to tho value of £40,000. The vendor of the property, having completed the sale, sent tho amount Tcceivcd to Now Zealand for investment at 4 per cent. Instead of making general statements of this nature, the proper tiling for these gentlemen to do, said tho Prime Minister, was to submit figures stating what amounts had beon withdrawn from New Zealand. "Tho same kind of criticism has been levelled in tho olden days of the Liboral Administrations about monoy going out of the country, and has been proved to be mythical, for a year or so after large sums were being sent to New Zealand for investment. That has been my experience as Minister for Finance to-day. Large amounts havo been offered to tho Government from outside of Now Zealand—more than wo can take for Governmental purposes. In a few days 1 will be glad to make a statement as to the amount of money that tho other Government Departments, in addition to the Advances to Settlers Department, havo lent on mortgage during the last twelvo months, and that at a low rate of interest compared with what money-lenders are getting, and still trying to obtain. I will also deal with the mortgage tax later on. This tax has been in operation in New Zealand for 30 years or more. Mr. Kettlo quotes the Victorian system in support of his arguments. In that State the Government imposes 50 por cent, additional taxation on land mortgage investments. If tho mortgage tax wero abolished, as is wildly urged, wo would havo no proper substitute; it would be saying good-bye to land taxation altogether. , It is quito evident Mr. Kettle's statements, that he spoke without ordinary knowledge of the position."