LAND TAX BILL.

Gisborne Times, Volume XXV, Issue 2201, 3 October 1907, Page 2

LAND TAX BILL.

THIRD READING DISCUSSION,

Press Association. AVELLINGTON, Oct. 1. AA'lien tho House of Representatives resumed at 7.30 p.m. the amendments made in committee to tho Land and Income Assessment Bill were agreed to. On tho motion for tho third read-

ing, Mr. Massoy said the Bill had been -.veil discussed in committee, and it served to show that a graduated land tax did not always fall on tho shoulders of those most able to bear it. Tho question was raised during discussion of the earlier clauses of the Bill as to whether there was not double taxation under the Bill, and ho was of tho opinion that such was the case, and he still maintained the opinion. Ho did not suggest that money invested in mortgage should escape taxation, but ho urged that it should only pay its fair share. lor the first time in the history of the colony differentiation was made between land in the city and land in the country districts. He _ did not object to tho exemption of city lands, but if it was right they should ex-' erupt lands in the country. He contended that the tax was a revenue tax. Ho urged that the Government should take stopß to place settlers on . Crown lands and native lands. Ho regretted the system of taxing flax had been perpetuated in the Bill. Owing to tho demand for the commodity, it was becoming moro in the nature of a crop year by year, and lie urged that flax should be exempt from taxation and the land tax applied to the area on which it was grown. Ho also contended' that it . was not plain that plantations were exempt from taxation. He contended that no difficulties should be placed in the way of the man who desired to subdivide his estate, and the Bill would be much better if the to per cent clause was omitted. He considered where it would prevent one case of evasion of taxation . it would also prevent the subdivision of estates for legitimate settlement. In conclusion he characterised the Bill as amended as a much, better Bill than that at first introduced Mr. Lang said ho considered the Government should adopt a vigorous policy of settling people on Crown and native lands. He urged that graduated tax should be imposed on income as well as on property. Ho added that there should be an exemption up to the value of £50,000. Mr. Rutherford considered a great improvement had been made m the Bill from its first introduction, particular! v so in regard to the reduction of the amount of purchase money from 25 per cent to 15 per cent, though ho considered the clauseshould have been struck out altogeMr. Herries also considered the Bill had been considerably improved in committee, though he doubted whether the amendments to the timber and flax clauses would meet with approval of the persons mostly concerned. He considered that individual shareholders in a company should not be held liable to pay the tax, but the company itself should be liable, and the Commissioner should sue the company in the event of failure to pay the tax. He contended that the Bill was full of pitfalls, and would prove a goldfield to the legal profession. Mr. James Allen could not see any reason for the distinction made between lands in city and country. He contended that the Land Bill was one of the most drastic measures that had ever been placed on the Statute Book, and lie maintained that it was distinctly unjust to make the 15 per cent, clause retrospective, inasmuch as landholders .who had sold estates under the existing law would not be able to bring themselves under the provision of the clause. He urged that they should have been given time to make provisions. Mr. Hogg contende that the Bill would be beneficial in the direction of settling men on the land, and would put an end to malpractices of largo landowners in making bogus divisions among his own family. He added that the Bill would strike a blow at greed—a qualify unfortunately ineradicable in human nature. He thought the Bill was too mild, and would like to see it touch the shark as well as the dog-fish man who went about buying small farms and dairy farms and turning them into sheep runs. Mr. Reid quoted from Paper BI7A of this year to show that the aggregation of estates was not going on, but estates were being subdivided. Mr. Ell said the whole crux of the Opposition’s contention was that they desired to relieve the laud of taxation.

Mr. Thomson argued that the time had arrived when legislation should bo introduced to limit the borrowing powers of municipalities, as veer bv year rating was increasing,"and it was becoming impossible for the poor man to live in large cities.

Mr. T. McKenzie urged that . a much lower income tax should be placed on the man whose income depended on his labor and some of the burden put upon the man whose income was derived from property that might have been left to him.

Mr. Han an, in congratulating the Government on the Bill, contended that it would settle more people on the land and be a step in the direction of. settling the labor question, which went side by side with, the Land question. At 10.5 p.m. the Premier rose to reply. He pointed out that there was a conflict of opinion between members of the Opposition. - One said the Bill wa6 legalised robbery and another said it would open" land for settlement under the Bill. It had been reiterated that they were running away from the Land for Set-

tlements Act or were afraid to put it into force. Ho quoted figures to show what lands had been brought under this Act from April Ist, 1907, to Juno Ist, 1907. The Government had paid £210,182 for 276,683 acres of land, and liabilities had been incurred in respect of an additional 32.187 acres, valued at £210,825. The Premier was still speaking when the telegraph office closed.