SOLDIER SETTLEMENT

Dominion, Volume 12, Issue 12, 5 September 1919, Page 8

SOLDIER SETTLEMENT

$ ..THE LOAN BILL THE " FREE-OF-INCOME-TAX " ISSUE ALL-NIGHT SITTING OF PARLIAMENT,.

The House of Representatives had an all-night sitting over the Soldiers' Settlement Loan Bill, tho point at issue being tho provision empowering the Government to issue tho debentures free of income tax. During the debato on tho second reading of the Bill, many mombers expressed disapproval of this provision, end urged tho Government to abandon it. Sir James Allen (Minister of Finance), replying,at 3.25 a.m., said that tho inclusion of the clause in the Bill did not necessarily mean that the Government would raise the loan freo of inebmo tax. . Mr. J. Payne (Grey Lynn): You know very well you will do it. Sir James Allen: "-The clause is optional, and I am not prepared tdUake t'ho option out. I will not tako the responsibility of advising.the .House to do that. I have given instructions that a return shall be prepared for mo showing exactly what the position is as regards loans already raised free of income tax and the clftfct of so raising them. That re : turn is not yet in my possession. When it is, it will very largely assist me, if I am still Minister of Finance, to decide as to how I shall raise the loan." Sir James Allen read a,, statement made by Sir Joseph Wnrj, on tho samo subject in 1918, and 6aid that ho asked the "House to leave tho matter in the hands of the Government, which ', was responsible to the House and tho country. It was true there- were compulsory clauses in the Bill, but he was not prepared to say that the compulsory clauses, if used, would provide all tho money that Ohe Government required. Inauiry on that point was being made.*' He asked the House in the meantime to acoept the Bill as it stood. He had no desire to assist people to escape income tax., No Minister of Finance, facing the responsibilities of tho next few yearSj would wish to do that W'hen the Bill was in Committee, Mr. J. M'Combs (Lyttclton) moved an amendment providing that tho dobenturw 6hquld subject to income tax. This amendment wa£ discussed at length, and was supported by the Labour members and other members on, both sides of-the House. - . Mr. W. A. Veitch (Wanganui) said that the Government should raise nioney as it had raised men during tho ww, by imposing tho duty of citizenship on tho people.

Tho Prime Minister said that it was not a question of vested interests or of privilege. 1 Tfye Government and the country had a duty to the returned soldiers. The money provided for in tho Bill had to he raised, and the question was how "best to raise it.' His own 6ywpathv was with the idea that tho loan .should be subject to income t».x in the ordinary way, but there were difficulties to 1» faced, ond the proper thing was to leave the matter in the hands of the Government. The debentures would bo subject to income tax if tho money could bo raised that way. _Mr. G. Witty (Riccarton): You can do it if you like. Mr. Payne: He knows'that well enough. Mr. ILassey: I* don't think it is right to take advantage of tho position in which we are placed. We may be placed in a very difficult position if. members say that the money shall he raised subject to inoomo tax without'leaving, us any discretion. If we cannot raise tho money except under the conditions on which loans have ten raised during the lapt few years, we shall have to do it that way, Mr. Witty: You compelled and you can compel the money. Mr. _ Massey: Wo have to look at the financial outlook, which is not as membore imagine it to -be. .It is a moat serious position at present If members have confidence in the Government they will allow tho clause to pass. ' We shall do what'wo believe to bo right. Mr. 11. Semple (Wellington South) said that the Lanowr members were as anxious as any other members were to assist the soldiers.

'Mr. Honi'sby' (Wairarapa): You didn't doit during the war. Mr., Seinplo-. Wo differed from you on the question of war policy, but wo wero never treacherous to the soldiers. Mr. J.- Anstey (Waitaki) urged the Government to give way on the point. The monoy was not being raised for war purposes. A most serious position : would arise if the Government oontinued to create a wealthy class exempted from taxation. .Replying to Mr. Payne, who had tailed of an "international finance gang," the Prime Minister 6aid the Government knew nothing of such a body. Miii. isters were simply trying to do their duty .to .the returned soldiers. They must have the money at once or else pause in the work of. repatriation. The Minister of Lands had reached the limit under' present conditions. He ' could not go a single yard further with repatriation unless the money were .authorised. After the amendment had been discussed for nearly two hoars, it wont to a division and was defoatod by'2l votes to 17. . The division Hit was as follows:— Against (21). 'Allen, Sir James Hornsby Bollard, . Hunter B.uddo. Luke ■ Coates , M'Callum Dickson, J; S. Mac Donald Ell Massey Field, W. H. , Nosworthy Fraser, Sir Wm. Pearce Guthrie • Russell i .Hemes' / Scott 'Hine ' For (17). Anderson Semple Anstey .-Smith, S. G; Crajgio Statham Dickson, J. SI. Talbot Frasor, P. Veitcb Holland Walker M'Combs . Wittv Newman, Dr. A. K Wright Payne The Bill was put through' all its stages and passed. The Houso rose at 5.25 a.m.