PARLIAMENT

Evening Star, Issue 22453, 25 September 1936, Page 9

PARLIAMENT

THIS MORNING'S SITTING TAXING BILL DEBATE CONTINUED [Per United Press Association.] WELLINGTON, September 25. The House met at 10.30 a.m. The New Zealand Institute of Clerk of Works Bill was introduced and read a first time. The second reading debate on the Land and Income Tax (Annual) Bill and the Land and Income Tax Amendment Bill was resumed by Mr Forbes, who said the Prime Minister had promised the electors that the Labour Party would not borrow, inflate, or tax; yet the House was now considering an increase in taxation. Many people believed that the Government could carry out all its schemes without any cost to themselves. The Government said it would raise the standard of living in the Dominion, but how could that be done by adding to the burden that was- placed upon industry, and that must raise the cost of living? Heavily-taxed countries could not prosper as well as less heavily taxed ones. He contended that the best service that could be given the worker was to allow industries to operate and prosper. He claimed that the graduated land tax took away the encouragement for a man to take up land. That tax placed a heavy burden on those who had the most difficult work to do. He said it was not the graduated land tas that brought about subdivision of land, but the arrival of prosperous times, which increased the value of. land and made farmers decide to sell some of their holdings. Mr Savage said he took back none of his election promises in regard to taxation. He thought reorganisation was overdue, but he reminded the Opposition that Rome was not built in a day. He did not think anyone could say the Government had been going slow. The Government was not letting anyone down. He repeated, that taxation had been overdone, and the use of public credit underdone. He was not one of those who believed that taxation should bo done away with, but he thought it should be used sensibly to create public assets. Me had promised to remove the rate of exchange and the sales tax, and it would be done when times were suitable. Ho thought the raising of the exchange was the most stupid act possible to help the primary producers. Mr Forbes: That is a matter of opinion. Mr Savage said the raising of the exchange helped one section of the community at the expense of others. The introduction of the ’ sales tax was far from wise, and the people of New Zealand had to pay it, not people abroad. CHRISTIANITY IN PRACTICE. Mr Savage said the Government was going to alter the forms of taxation. What was wrong with the country today was maldistribution. It was not failure of production, and they needed some form of taxation which. would increase the pay of those down below—something that would shift soma of that which was going to the rich and give it to the poor. It was Christianity in practice. The incidence of taxation was not anything like being perfect. He did not suppose it would be in his time, but it would be better than it was to-day. He held that when placing taxation they should place it on the shoulders of those able to pay it. The thing that was wrong with New Zealand to-day was inequitable distribution of the nation’s income. He had not said during the election that he would not increase taxation. He had not put it in that way. He had said they had overdone the use of public credit in the wrong direction. He would sooner not have to introduce the present legislation, but he was not going to keep people on the verge of starvation until this time next year to give them the lift they wanted. He would give them the lift now, and was promising that this time next year there would be a still greater lift; and even, then, if he could not lift some of the taxes he was condemning to-day, he would not apologise for it. He would like to be going to the people for a mandate to-morrow. There would not be any Opposition left. The Bills were simply keeping the Government going while the Government was implementing the programme it would put on the Statute Book as sure as the sun would rise in the morning. Mr Savage said some revision of taxation was overdue. Some forms would have to go altogether. Indirect forms of taxation would have to give place to forms the people would understand and appreciate. The barrier between Britain and New Zealand would have to go. Mr Coates: When ? The public would like to know. Mr Savage: The public will know all right. We will tell them from this House through the newspapers and over the air. Mr Wilkinson said the taking off of exchange and the sales tax was more difficult than putting them on. It was not fair the Prime Minister should make general statements. He should tell people when and how it was going to be done. MORTGAGE BILL AMENDMENTS IN COUNCIL Several amendments, mainly of a minor nature, were made to the_ Mortgagors and Lessees Rehabilitation Bill by the Statutes Revision Committee of the Legislative Council. The right of a vendor mortgagee to repurchase any property is now dependent on an order of an adjustment commission. This amendment has been made to meet the wishes of members of the Opposition in the House. , It has been made clear that relief given to any guarantor will not release anybody else. This amendment has been made* to meet the fear that if one guarantor in a joint and several guarantee was released, such release might discharge others. The time for service of notice on a guarantor has been extended one month, where failure to serve-the notice was unavoidable. An amendment has been made removing the doubt which might prevent a mortgagee dealing with his mortgage where sales of property are made after an adjustment has been made. Owing to the financial nature of the Bill, these amendments will go forward from the Council as recommendations to the House. BY LEAPS AND BOUNDS. Mr Wilkinson said taxes were growing by leaps and bounds. Nothing was becoming cheaper. The Govern-

ment was increasing the taxation of incomes of smaller people by 56 per bent., and on higher incomes by 7 pat oent. ; , ThS Government had found that all the money required could not be secured from high incomes, and that was also the experience of the United States. He suggested that taxing Bills should be introduced a .year before they operated, so that people would have a chance of understanding them. The luncheon adjournment was taken.