THE FLAW IN THE ACT

Dominion, Volume 9, Issue 2809, 29 June 1916, Page 6

THE FLAW IN THE ACT

OR THE PLY IN THE OINTMENT. Sir,—Tho Minister of .Finance (Sir Joseph Ward) appears to be, according to your report of Parliamentary proceedings, 011 the verge of becoming identified with what could only be truthfully termed a palpable Ministerial blunder. In tho heat of the moment, possibly duo to the back-stabs ripped into him over tho exemption of tho mortgage discussion, he, in deprecating the manner in which criticism had been raised, intimated that he believed the mortgage tax would liavfe to bo restored, because the Act as it stands does not contain a clause giving special concession to borrowers of capital oil land; in other words, giving no exception of mortgages from ordinary land tax. Is not the 'and an asset of tho State? If it is I would ask what concern is it of the Minister of Finance or of the Government as to what terms of payment of purchase money the ownership of land has involved? - It can be conclusively shown that the ! Act, as submitted, is quito free from the suggested surprise flaw, as the non-provision for exemption of mortgages from ordinary land tax could not bo justly or reasonably viewed in the light, of a flaw. It would bo unreasonable to penalise the person who saved up in order to pay cash for his land, and offer special concessions to the person who preferred borrowing the capital necessary to the purchase of land. Is it tho member for Waikato's idea that tho Government should lend money to settlers, and offer, as an inducement to borrow, exemption of land tax (the country's revenno) upon the anionnt borrowed? It would bo-difficult_to reconcile such an idea with common-sense, unless one had been borrowing heavily. The Bill, as it stands, is a credit to, Sir Joseph Ward, and it is to be hoped' that he will firmly stand by his guns—l am, ONLOOKER. Wellington, June 2S, 1916.