PARLIAMENT AT WORK

Dominion, Volume 15, Issue 70, 15 December 1921, Page 8

PARLIAMENT AT WORK

IMPORTANT FINANCE BILL

SOME INCREASED TAXATION

THE UREWERA LANDS

The Legislative Council passed the Death Duties Amendment Bill yesterday after some (Objection had been taken to retrospective legislation. The Council passed the Crimes Amendment Bill (dealing with the “silent witness”), and dealt with sovera I other measures.

The Primo Minister made a statement concerning shipping delays at British ports. He indicated that proposals were being made for the diversion of some - produce from London

The debate on the report of the Cement Commission was concluded in the House. The suggestion that the Government had been influenced by the fact that some members of th e Reform Party were shareholders in a cement company was emphatically denied.

Th a report on the scheme bf consolidation in the Urewera Country was placed before the House

In the evening the Main Highways Bill was referred to a special committee. The House passed the Inspection of Machinery Bill and the Mental Defectives Bill. It dealt also with the Municipal Corporations Bill and the Counties Bill

The Finance Bill, introduced late in the evening, provides for a 5 per cent, rebate of income tax, and for increases in the amusements tax, the totalisator dividends tax, and the racing stakes duty. If contains many other important provisions.

INSPECTION OF MACHINERY

FARMERS’ OIL ENGINES EXEMPTION ADVOCATED The Bon. W. H. Berrios last night moved the second reading of the Inspection of Machinery Amendment Bill , in the Bouse of Representatives. The Bill is a small one. It provides that with the approval of the Minister the Board of Examiners constituted under tho principal Act may appoint fit persons to examine candidates for examinations prescribed by tho Act. The Minister explained that this made legal the practice at present followed. The Bill also prescribes a new scale of fees for inspections. Mr.- D. Jones (Kaiapoi) thought that oil engines ought to be exempted from inspection. The worst thing an oil engine could do, he said, was to stop. The Leader of the Opposition (Mr. F. M. Wilford) and other members supported the request. It was argued that tho inspections were a source of unnecessary inconvenience to farmers. The engines should be exempted up to a certain horse-power, at any rate. Mr. C. E. Statham (Dunedin Central) suggested that women over 18 years of ago should he permitted to work e.evatovs on buildings. Mr. M. J. Savage (Auckland West) considered that there should be a representative of the Enginedrivers’ Association on the. Board of Examiners. The hoard, moreover, should not have pover to delegate its functions to other p»i* sons who might be incompetent. Mr. Savage wished to see the law require that none but competent persons should be allowed to Im- ch-"" of oil e-H-es Mr. A. Hamilton (Wallace) could not understand why an inspector should go on to a farm and inspect a motor tractor which had the same engine as a motorcar. That sort of thing, he said, irritated farmers. " , Mr. I’. Eraser (Wellington Central) said that the Engine-drivers’ Federation had been promised an opportunity oi making representations to the Government when a Bill of the kind be ore the House was introduced. He wished to know whether the promise was to be f said that ho did not propose to go on to the committee stage that night. He would convey to the Minister in charge of the inspection of machinery the criticisms which members had offered. He had fancied that tho Bill was quite a harmless one, no he perceived that it was loaded in both barrels. (Laughter.) Members had suggested certain exemptions, but they i not made it very clear how the lines o 1 -demarcation were to be drawn. I ■ tho duty of the State to that machinery was set up in a way that did not endanger life- He , s that the fanning members should discuss the problem together and sc ® These would, agree on definite proposals. These w oum, t” was' sure, receive duo consideration. He was aware that women were J 6 *™ fhn inspection of machinery. Tho Bill was read a second time. REVISING THE ESTIMATES 'A GOOD PRECEDENT"ESTABLISHED The course taken this year in vie of the need for retrenchmentof mitting tho Estonates o {or Accounts Commit t ®]. en every year, was revision mi ? ht be - Tnitt /Q ir jstsuggested by Mr. L M. (he church yiMcr ! >. or a ■ Primo Minister f this co n ""“"J","Si X'i ~ ilk. °Ld”had a verv good effect. There would save the taxpayers money. THE STANDING ORDERS R.EVISIONNEEHE®. An inquiry regarding tho committee to revise tho standing ordeisof th House, tho setting up of which mentioned last year, was made in the whoirgesfed that the. Speaker of Committees might conin the recess on the matter, and perassociated with them some had g r l tho' standing orders, and while ho Which course he proposed to take. HIGHWAYS BILL The Highways Bill was read a second ' Junto forma in the House last night, was referred to a special committee.

SHIPPING DELAYS

THE POSITION IN LONDON DIVERSION OF CARGO SUGGESTED The Prime Minister stated in tli'6 House of Representatives yesterday that consequent upon the delays which have occurred in connection with the discharging of New Zealand meat and dairyproduce in London, he had been m ’.communication with the High Commissioner with a view to endeavouring to arrive at the full facts of tho matter, and especially to ascertain whether anything could be done to relieve the very serious position brought .about by the inability to discharge produce after the vessel’s arrival in London, and the delay resulting before the return voyage can be undertaken. “A cablegram has now been received from the High Commissioner in which he states that, as regards dairy produce, cheese is not so much affected, though there was considerable delay- in the case of the steamer Somerset, in which the cheese was carried in the lower hold with meat above it,” said the Mr. Massey. “In vessels which have arrived later, ’considerable delay has taken place in discharging their butter cargoes, consequent upon the meat carried above the butter being unable to bo discharged owing to storage ashore not being available. “The High Commissioner states that the congestion of refrigerated storage for meat in London is decidedly serious. He has ascertained that cold storage is available in Liverpool, Manchester, Cardiff, Hull, Bristol, and Southampton for approximately 800,000 freight carcasses, and advises that he is calling tho attention of the principal imposters of refrigerated produce to this fr.vt, and suggesting the possibility of diverting some future cargoes to these centres. The High Commissioner further states that to assist in preventing a perpetuation of the present conditions, shippers might consider the advisability of consigning some portion, at any rate, of their shipments of. refrigerated produce to other ports, instead of concentrating everything in London. In view of the present-day position the present congestion of refrigerated storage at Home is highly detrimental to the interests of the Dominion, and the matter is of such urgent importance that, by way of supplementing the efforts which are being made by t'ho High Commissioner, I have made representations regarding it to the Imperial authorities through the medium of the Governor-General.” municipaT law THE LOAN POLL FRANCHISE. The Minister of Internal Affairs (Hon. W- D. Stewart) last night moved the second reading of the Municipal Corporations Amendment Bill in the House of Representatives. He explained that the Bill contained little more than, a few technical changes in the existing law and clauses embodying provisions asked for in remits of the municipal conference. Mr. D. G. Sullivan (Avon) urged' the Minister to provide a less complicated form of procedure for the amalgamation of part of a county- with an adjoining city. Be suggested -hat occupiers as weil as ratepayers should bo allowed to vote on loan proposals. Sir John Luke (Wellington North) dissented from the suggestion that the franchise should be widened as far asloan proposals were concerned. The security for loans was the properties of the ratepayers, and he did not think it reasonable that people who had no property- interest in a town should be allowed to commit the town to loans. Tho disqualification imjwsed upon contractors dealing with local authorities had driven him out of business. It was not reasonable to disqualify the director of a company from sitting on a local bodybecause the company- had sold some article to that hotly. Tie admi-ted there was a. danger of abuse, but a rigid disqualification had tho effect of keeping many business men out of public life, lie agreed with the proposed increase in the rate of interest payable by local bodies on money- borrowed for the. erection of dwellings. The Bill was read a second time after the Minister hnd expressed the opinion that the provision for the amalgamation of outer areas with boroughs was reasonable and sufficient. The House put the measure through later in tho night, without amending it. WADDINGTON SETTLEMENT The Waddington settlement in the Butt. Valley was flooded again during tho heavy rain at tho beginning of this week. Mr. T. DI. Wilford (Hutt) mentioned this matter in the Bouse of Representatives yesterday, and urged- the Minister of Lands to undertake the drainage work required to make 1' settlement secure. The soldier settlers, ho said, were having a very hard time at present, and tho flooding of their holdings was a very serious matter indeed'. Tho Minister of Lands said the widening of tho drain to prevent this flooding had been estimated to cost about ,£'3oo. Tho Department could not provide this money nt present without a snecial grant from the Minister of Finance. Tho matter had not been lost sight of, and lie would make every effort to meet the needs of tho settlors without delay. The ninnev would bo well spent if it turned a settlement. that was in dancer of collapsing into a. successful settlement.

DEATH DUTIES BILL

RETROSPECTIVE EFFECT CONDEMNED MINOR CHANGES FORESHADOWED The Death Duties Bill, which had already been passed by tho House, was yesterday- passed by the Legislative Council, which had no power to amend it. The measure is largely a consolidation of the existing law. Referring to tho clause designed to remedy a blunder in the Act of last year, which opened the way to evasions of gift duty, the Attorney-General (Sir Francis Bell) said that though the Cjovernment was strongly opposed to retrospective legislation in general, it considered that this clause was rightly retrospective. The loophole discovered in tho existing law was the result oi ingenious interpretation which was clearly contrary to tho intention of the Legislature. The Government did not desire that those who had taken advantage of the defect in the law should bp rondo to pay a penalty, but merely that they should' be compelled to pay the duty they had evaded. He was prepared to consider whether a proviso was necessary to make this clear. The Hou. O. Samuel thought that he should offer criticism of the Bill despite the fact that the Council could not amend it. Tho Attorney-Geneial had spoken of those who had made gifts on which duty had not been paid as having done, something morally When a man wade o gift in his lifetime, with no thought of evading the pavmont of death duty on his estate, and made it duty free under the existing law, it was a pity that he should ho singled out for liability- under retrospective legislation. Liberality- of the kind he hadi described was deserving. of encouragement. Mr. Samuel drew attention to the requirement that within a month of the making of any gift, the value of which exceeded £lOO, a statement in prescribed form should be delivered to the of Stamps. There were severe penalties for failure to comply with this requirement, and in the event of the donor’s default tho onus of furnishing tho statement fell upon the beneficiary. The difficulty about the provisions, Mr. Samuel stated, was th.-.- they would apply to small private pensions, which were not given in pursuance of any legal obligation. Statements would have to be constantly furnished if tho penalties were to be avoided. The»Hon. J. P. Campbell joined yith Mr. Samuel in his protest. He did' not regard those who had taken advantage of the interpretation given by the Court of Appeal as having done anything wrong. Some of these people, making their gifts some time after the decision, might well have believed that the Government did not- intend to alter the law. , , Sir Francis Bell: We made no secret of ii: - Mr. Campbell said that if an amendth on t was to have boon rondo it should have been made immediately after the Court’s decision. , The lion. C. 11. Izard believed that it was unfair to attempt to charge interest on death duty outstanding after three months had' elapsed from tho time of the decease. Months often went by before valuations were made. It was wrong that an estate should bo saddled with interest on an amount unascertained not from the fault of the executor, but of the Department. Interest should commence to be charged not earlier than three months after the receipt of notice from the Commissioner of Stamps. Sir Francis Bell said that he. had noted Mr Samuel’s objection with regard to the effect of the Bill upon tho donors and recipients of sim?ll jirivate pensions. Ho was almost certain that nn amendment raising tho amount mentioned in the Bill from £lOO to .£250 would be introduced later by Message. Ho agreed with Mr. Samuel’s view of tho matter. He thought, with Mr. Izard, that interest should be charged from the date of assessment and not from tho date of death. Ho was not in a position to give a positive assurance, however, that there would' ba an amendment dealing with this point, because he had already- raised the point when the legislation was being considered in the recess. BILLS IN THE COUNCIL CRIMES AMENDMENT PASSED. Tho Statutes Revision Committee of tin? Legislative Council yesterday reported that it had considered the Crimes Amendment Bill, and had no alteration to suggest. The Bill, as has been previously explained, prevents the woman in an abortion trial from shielding the alleged. abortionist by a refusal to give evidence on the ground that she may incriminate herself. The Bill was passed by the Council without amendment. 'The Land Agents Bill, which had already- been passed by the House, was read a second time pro forma, and referred to tho Statutes Revision Committee of the. Council.

Tho Banking Amendment Bi’l, as amended b- the' IXatutes Revision Committee, was put through the stage without any further change. Its third reading was postponed. The Family Protection Bill was passed, with a slight formal amendment recommended by the Statutes Revision Committee. Tho Maintenance Orders (Facilities for Enforcement) Bill was passed in the form in which it had come from fhe House. The Aid to Public Works and Land Settlement Bill, which authorises a loan of £5,000,C-)<), was received from the House and read a first time. Tho Hon. J. MacGregor gave notice of. his intention to introduce a Marriage Amendment Bill. PREFERENCE TO UNIONISTS NOTICES OF MOTION WITHDRAWN. After standing upon the order paper of tho Legislative Council for weeks, notices of motion recommending the Government to abolish preference to unionists and similar union privileges have been withdrawn. The notices had been given by the Hon. J. MacGregor, who explained yesterday that he wish" . to withdraw them because, he had decided to adopt a different method of dealing with tbe subjects referred to. AMENDMENT OF COMPANIES ACT An amendment of File Companies Act was yesterday introduced in the Legislative Council by Sir Francis Bell. A section of the principal Act provides Hint no company, association, or partnership consisting ot more than ten persons is to be formed for tho purpose of carrying on qny business that has for its object the acqiiisition of gain, unless i* is registered under the Act. or is formed in pursuance of some Act, or liy Royal Charter or . letters patent. Tho Bill exempts co-operative labour from the application of this provision. It also adds an emjiowering section to u part of the Act, which enables dairy companies to invest, in correlated businesses. Sir Francis Bell explained that dairy companies wished to take shares in the Farmers’ Mutual Insurance Company, and that tho Bill gave them power to do so The Bill was rend a first time. The llcuse last night read the Public Contracts and Local Bodies’ Contractors Amendment Bill a second time without debate. The measure relates to the disqualification of persons for scats on local bodies, but it makes no very serious changes in the existing law.

FINANCE BILL

IMPORTANT PROPOSALS FIVE PER CENT. REBATE OF INCOME TAX THE AMUSEMENTS TAX INCREASED HIGHER TAXES ON RACING Very important provisions are contained in the Finance Bill, introduced in the House of Representatives last night. The amusements tax is to be increased on a basis of one penny fee each sixpence. The taxes on totalisator dividends and stakes are to be increased. A five per cent, rebate is to be allowed for prompt payment of income tax. The increased revenue will amount to about £400,000, while the concession in connection with the income tax will cost the Government about £300,000. The Prime Minister explained the Bill briefly whin it was introduced. He said that he was proposing to allow a live per cent, rebate in connection with tho income tax due in February next. Ihat was a very important provision. lhe Bill provided that a taxpayer who chose to pay his income tax in advance might do so and receive interest at the rate allowed bv the Post Office Savings Bank. Some people had asked for this provision, which was a profitable on? for the Government. . Tho amusements tax was to be increased, continued the Prime Munster. Mr. Wilford: I hope you arc taking it off the low-priced seats and putting it on tho high-priced seats. Mr. Massey: That is a very difficu t thing to do. 1 have been looking at what has happened in England and Hat rate- are propwing a tax of sixpence for' every shilling. e sixpenny tickets will be taxed one penny. Mr. Holland: Then you are" going to tax the- children. Uv Mr. It is an optional tax. This is much more than we have been collecting, but it.is not as high , as he amusements tax in Australia and L>u„ land. We propose to get a little more out of racing The proposal is not exactly what I intended at first On J™} o™’* 0 ™’* of taxation are provided in the Bill.one on dividends and the other ™ BtnkG»"J--am told bv racing men in tho House that this is not likely to affect the country clubs. It will be a tax on not on investments. Fhe dividend du y is to be one shilling for every pound fraction of' a pound instead of Sixpence. The stakes duty increased from one pei cent, to ten per cent. Mr. Wilford: They are all dropping their , , Mr. Massey: I have been surprised how they have increased their stakes in recent years. I am gi’/ng the clubs their fractions. I undeistand the racing! people will accept this on the understanding that the scheme will be reconsidered in two years. I think that it wil be necessary in two years to review the whole scheme of taxation. I think the financial condition of tho country will have so improved by that time that it will be possible to revise the taxation. The country cannot continue to carry its present load of taxation. Air. Wilford: What do you expect to get out of the new taxes? Mr Massey: It is very difficult to say. I-ought to get .£200,0W out of amusements and £200,000 out of racing. Mr. Wilford: A total, of £400,000, and you are giving .£300,000 away? Mr. Massey: It is an adjustment of taxation. The people cannot go on paying the very high rate of income tax that they paid during the war. It is affecting the business of the country. I am only sorry I cannot do more. Explaining other provisions of the Bill, the Prime Minister said that provision was made for the remedying of an old difficulty regarding debentures issued under tho Land Settlement Finance Act. It had been argued that these debentures were liable to income tax. The intention of Parliament had been ihnt they should be liable for income tax if held in New Zealand, but should bo free of income tax if held abroad. The Bill was making tho point clear. It was not an important matter, but it had produced a lot of unpleasantness. Certain companies had Ikon issuing debentures which they asserted to be free of income tax. An impression had got abroad that the holders of those debentures might have the right to claim a refund of income *ax, although as a matter of fact they had not paid it. The Bill cleared up that point by providing that there should be no refund.

The law of last year regarding the collection of income tax on .he debentures of local bodies was being amended. The duty of collecting the tax had been imposed last year upon the local bodies, and they had objected. The Bill provided that'the duty of tho local body would be to supply ihe Taxing Department with a list of debenture holders. The Department would then undertake the collection of the tax. If the local body <lid not supply the list it would be liable -o pay the tax. The Department believed that it could collect, the tax under this arrangement. There was a small provision" with regard io people who effected insurance with foreign companies that did not carry on business in New Zealand. These companies were to be liable No income tax, and the jw>r&m assuring must accept the responsibility. Tha Bill provided for the collection of the duties on beer and tobacco on the lines indicated in the resolutions already adopted by the House. A provision for the establishment of a separate account for the proceeds of the tire tax would be inserted in the Bill.

Air. Holland: I just wish to say that in so far as the reduction in (he income tax and tho imposition of tho amusements tax are concerned, the Labour Party will exhaust all the forms of the House in opposing them. Mr. Massey (warmly): Very well, then, I’ll keep the hon. member and his Labour Party here for the next six months. OTHER PROVISIONS. The Finance Bill provides that in calculating the assessable income of a cooperative dairy company there shall lie deductible from the gross income of the company an amount equal to the amount paid or payable during the income year to suppliers in respect of milk and but-ter-fat supplied. Another clause provides that the State Advances Office shall bo liable to pay income tax. The Commissioner of Tuxes may allow a deduction from the assessable income of an employer in respect of any amount set aside or paid by the employer to provide individual personal benefits, pensions. or retiring allowances to employees of that employer. The Commissioner has to lie satisfied that the rights of the employees to receive the benefits have been fully secured. In imposing new rates of amusement tax a fresh provision is introduced Io cover cases where patrons of any entertertainment or scries of entertainments arc admitted by the payment of a lump sum as n contribution to a society or for a season ticket. In that event the amusement tax has to be paid on admission whether any money actually passes

at tho time or not. The rate is to bo that which is charged for patrons in tho same part of tho house who are paying for admission in the ordinary way. The present arrangement under tho Finance Act of 1917 is that tho tax is payable upon the amount of the lump sum for which tho season ticket or right of entry is obtained. The exemption from amusement tax in tho'case of agricultural shows as set out in the Finance Act of 1918 is abolished. The provision for revising the. increased taxation of totalisator dividends anil the stakes at race meetings is embodied in tho following terms: —The new rates are to remain in force until March 31, 19M. They shall then bo deemed to be abolished unless an Order-in-Council shall have been issued before that dale extending them for a further six months. Tn the event of non-extension, or at the end of the extended period, the duties in force at the present time are to become automatically reimposed and to remain in force until varied by legislation. COUNTIES LAW SPECIAL SANITARY RATES. The Counties Amendment Bill, which embodies provisions asked for by remits of the Counties Conference, with somo other slight amendments of the existing law, was last night read a second Line in the House of Representatives. Speaking to the second reading, the leader of the Opposition (Mr. I. M. Wilford) said that in committee he intended to propose a cUuse giving exemption from tho special samtaij rate (“persons who had installed satisfactory septic tanks, and would receive no benefit from the county sajiitary service. The question was one of , in " terest to certain residents at Trentham, who had installed expensive septic tanks. He intended also to propose that lhe special rate which might be st’-uck for sanitary services should be limited to eno halfpenny in the pound In -reply to a few words from Mr. n M Campbell (Hawke’s Bay) in rdyocates of toll-gates on roads, running alongside railways, the Minister in charge of the Bill (Hon. W. D. Stewart) said that the tendency appeared at present to be away from the toll-gate system. FREEZING CHARGES THE THREAT OF AN INCREASE “sometiunTdrastic” "Something drastic” ought to lie done by the Government regarding the increase of freezing companies’ charges, said tho Leader < the Opposition (Mr. AVilfprd) in tho Houso of Representatives yesterfrty. He mentioned a report that a certain company ‘ was raising ns charges, and said that the producers could not afford to pay increased prices at the present time. Mr. Wilford added a suggestion that the Government should inquire regarding the American scheme for using public funds to help fanners to meet their rates and taxes while they were unable to sell their produce. The Prime Minister, referring to the freezing charges, said that the was receiving attention. He could not go into details but he could say that something woiild.be done in.regard to the charges in the very near future The pavment of land tax. added Mr Massey, had been reasonably satisfactory and he would point out that much had been done already to assist the farmers to meet their obligations in the time of difficulty. SOLDIERS’“BUSINESSES RFTURN OF THOSE CLOSED DOWN. “The Department is always anxious to give such e. return as this, because it has nothing to hide or be ashamed of” said tho Minister in charge of Repatriation (the Hon. D. H. Guthrie) yesterday, as he presented, to the House a return asked for by Mr. Kellett (Dunedin North). The return shows that the number ot soldiers’ businesses closed up owing to the inability of the soldiers to earn' on is 74. Six of the proprietors died, three became eccentric, 11 failed through illness or misfortune, and 54 were catalogued as “unsatisfactory.” The largest number of failures (d 7 occurred in the fishing business. "The Government, the return states, “has assisted GDDD discharged soldiers to establish businesses. It would be quite impossible to carry out a monthly inspection of the books and it was not intended to do so. lhe local officers of the Department exercise reasonable supervision, and the inspection of fhe Iwoks and stock is undertaken when circumstances warrant, but the policy of the Department in this respect is to refrain from unduly interfering with or hafassing the soldier in the conduct of his business. No fewer than 1081 business loans have already been repaid in full.” The imputation' made in the request for the return was, said the Minister, t'hat there had been a tremendous number of failures. heldlTbond HIGH-PRICED GOODS NEED REVALUATION. Mr., Vigor Brown (Napier) asked the Minister of Customs a question about quantities of soft goods and other merchandise which he said had been held in bond in the cities for some considerable time. These goods had been Iwimllt at a time of high values. Some had been in bond for nearly a year, but they would have io remain in bond for two years before there could be a revaluation. Many merchants who had such goods in bond were now proposing to reship them to England, in order to save the duty on fhe high value. He asked the Minis/cr if the" Customs Department could see its way to have the revaluation made now. It would ho better for the Government to get tho duty, and meantime the importers of the , goods wore losing interest on their ' money, which was not good for anyi body. , ~ , ~ The Hon. W. D. Stewart said he would make necessary inquiries, and see if anything could be done. “MANCHESTER GUARDIAN” AND CENSORSHIP PAPER WAU NEVER STOPPED, SAYS MINISTER. The Minister of Customs (the Hon. W. D. Stewart) on Tuesday replied to a statement —made on Monday by the Leader of the Labour Party-that copies of the “Manchester Guardian” had been withheld, after their arrival in Now Zealand, till they were well out of date. . 'l’lio Minister said that he had just received from his Department a memorandum indicating that the censorship had nothing to do with tho late delivery of tfio "Manchester Guardian.” The paper hnd never been stopped, and had never even been examined. No hindrance of any sort had been placed in the way of its circulation. Tho only explanation of tho misapprehension in Mr. Holland’s mind appeared to be that recently some of tho mail steamers had been very long in making their passages, and had delayed the arrival of the newspaper. . Mr. Holland said ho did not. think that he had mentioned any particular Department, but had only said that copies of the paper were hold up until they wore ent of date. That statement oou'ld be proved. . The Minister: You said I knew all about it- . „ ~ Mr. Holland: We can give you all the information.