PARLIAMENT

Evening Star, Issue 22454, 26 September 1936, Page 9

PARLIAMENT

HOUSE OF REPRESENTATIVES [Per United Pupss Association.] WELLINGTON, September 25. The House resumed iit 2.30 p.m. Mr Wilson approved the principle ot taxing unimproved value of land, because it assured, as far as was possible, that a man was taxed on what he produced on that land. , . Mr Hamilton expressed the opinion that, as improving conditions would produce an additional three millions or revenue, the excuse that higher taxation was needed for pensions was political eyewash. New Zealand companies could not compete against British companies and pay 8s lOd in the L, which was an intolerable tax. the graduated land tax was instituted 40 vears ago to break up largo estates. It should have done its job; if not, it should bo abandoned. He said company taxation was very heavy, and before a company could pay a 5 per cent, dividend it had to earn 8 per cent, and pay the Government 3 per cent. He suggested that a company should be allowed to pay 4 per cent, before taxation started. He said the man who used his land to the fullest extent was not considered in the Bill. It caught the big man whether he used his land to the full extent or not, and that was apparently what the Government wanted—not to make a man use his land. Mr Coleman considered the Bill was not the last word in finance, but it was very necessary. The outlook of the people had become brighter, and they now felt they had something to look forward to. The Bill had been introduced to produce revenue, and, he believed it was a fair tax that would fall on the shoulders of those best able to bear it. Mr Smith said the graduated land tax would be as oppressive in the towns as in the cities. It would bring down the value of land, but would also reduce mortgage securities. Ho predicted that im 12 months some members would come back and ask for revision of the measures, because they did not at present understand _ their implications. He asked the_ Minister to consider exempting public lands, mch as some aerodromes, which die not come under the control of local authority. _ The debate was adjourned and the Industrial Efficiency Bill was intro.luced. It is reported elsewhere. The House rose at 5.25 p.m. LEGISLATIVE COUNCIL Moving the committal of the Mortage Bill, the Leader of the Council [Mr Fagan) said the hope of the Government was to write finis to the most difficult problem that had been apparent in the past six years. The serious objection to the legislation was that it violated the sanctity of contracts, but in recent times the stress of affairs and the interests of the country made it necessary for private contracts to be interfered with. Hon. R. Masters said the Bill would have the effect of protecting people who had paid down a small proportion of capital and those who had no equity in land at all. If finality could be arrived at it would create confidence for future investments. Mr Masters said it was essential that justice should be done to the mortgagor, guarantor, and the lessor, as well as to the mortgagee, lessee, and the grantee. He did not believe it should be a policy of the survival of the fittest. It would have been disastrous for farmers and those who financed them if the previous Government had not assisted them in some way. The Hon. D. Buddo said he intended to support the Bill. At the same, time he thought that the wholesale setting aside of mortgagees’ interests would not be to the credit of the court. The Hons. J. Cotter and B. Martin supported the Bill. The Hon. J. Alexander said he thought the Bill would discourage thrift and was a further onslaught on mortgage investments. The Council adjourned at 4,30 p.m.