GENERAL ASSEMBLY.

Globe, Volume VIII, Issue 982, 18 August 1877, Page 3

GENERAL ASSEMBLY.

[13 y Telegraph.] [pee press agency.] HOUSE OF REPRESENTATIVES. Friday, August 17. The House sat at 2.30 p.m, QUESTIONS TO THE GOVERNMENT. Replying to Mr Evans Brown, Mt Ormond said the exact route for the extension of the railway fifteen miles north of Amberlcy had not yet determined on, consequently nothing had been done to acquire the land or to fix the terms. Replying to Mr Barpf, Mr Bowen said the Government had received no memorial complaining of misconduct on the part of Mr Bird, R.M., Okarito. Mr McLean promised to produce correspondence regarding the removal of Edward Ryan from the postmastership at Gillespie Beach, Westland. Replying to Mr Laenacu, Mr Reid said the Government fully recognised tl ic magnitude of the rabbit nuisance, but they were not prepared to introduce a measure rendering it compulsory on leaseholders and freeholders to exterminate rabbits on holdings and making Crown lands contribute. It would be inconvenient to add a clause in this direction to the Sheep and Cattle Bill. The Government would fairly consider any Bill introduced by a private member. Replying to Mr Sheehan, Mr Whitaker said it was intended this session to introduce a Bill providing for the registration of Maori electors, and next year, in dealing with the question of general representation, to give Maoris representation in proportion to the population. It was also intended to introduce a Bill relating to the registration of European electors. In reply to Mr Joyce, Mr McLean said lie would ascertain the cost of extending the telegraph direct from Invercargill to Queenstown. Mr Travers asked the Government what steps they intended to take in reference to Mr G. E. Barton’s petition. Mr Whitaker replied that all petitions had in the first instance to go before the Petitions Committee. No other course was open. When the committee reported (lie Government would inform the House what steps they intended to take. In reply to Mr Fisher, Mr Bowen said lie believed a private member would introduce a Bill to amend the Christchurch District Drainage Act. THE INCIDENCE OE TAXATION. The debate on Mr Woolcock’s incidence of taxation was resumed. ! Mr Bowen said the Government quite | agreed that property should be made to bear I its fair share of the public burdens, but i the matter required grave consideration. The Government had made their financial proj posals for the present year, but had stated S that the change in the incidence of taxation ! was under consideration. He moved as an | amendment —“ That in the opinion of the I House, the incidence of taxation should be | adjusted so as to impose on property a fair share of the burdens entailed in the colony by expenditure on public works, and thereby afford means for the redaction of taxes on necessaries, and that the financial proposals of the Government next session should embody this principle.” Such change would enable them to place the whole finance on a sounder basis, and afford an opportunity to consider on what objects the main burden of indirect taxation should be thrown. The greatest improvement possible was in ad valorem duties. The principle was not a sound one. Any change shoidd rather improve the fiscal policy of the country than affect any great alteration in the proportions of the burdens of different classes of the community. It was not wise for the country to rely exclusively on either direct or indirect taxation. A mixed system was most desirable. Half the present taxation was derived from wines, spirits, and tobacco. He hoped the totals from these sources would be reduced gradually by decreased consumption. Already there was a sensible reduction in this direction. It was evident that changes in taxation required very careful consideration. It was impossible to make any change this year when the chief object was to make ends meet. The Speaker ruled that the amendment could not be put. Mr Stafford suggested that the House should allow Mr Woolcoek to withdraw his motion. Mr Manders hoped this would not be allowed, but that Mr Woolcoek woidd press his motion to a division. It was high time a change took place in the incidence of taxation and that there should be no further postponement in dealing with the subject. Mr Reynolds had for years supported a [proposal for a property tax. If members were true to their election pledges the majority would vote for it. Not land only, but all property above £3OO or £SOO should be

taxed. He did not think such a tax would, however, allow a great relief to be afforded in other directions. With such expenditure as ours, the revenue was altogether insufficient. A property tax would not render possible any great reduction in the Customs duties. The colony must give up extravagance and reduce its expenditure to the limits of its income. It had been too extravagant in the past. Mr Bunny warmly supported Mr Woolcock’s motion, but it was evident that no measure on the subject could be passed this session. The time had more than arrived when the middle and laboring classes should be relieved by a proportion of the burthens of taxation being transferred to the shoulders of the wealthy. A property tax was a sounder basis than Customs duties to depend on. Another question was whether the Colony would submit to a property tax, when one provincial district was receiving more revenue than the whole of the rest of the colony. We had one colony now and one Government, and they should insist on one purse. This question could not be permitted to be shirked. Mr Tbaveks urged the propriety of Customs duties being imposed on as few articles as possible, so as to be easily collected. He deprecated the cry for additional taxation. So long as the colony had a revenue from any source no further taxation should be imposed. No proper system of finance was possible till the whole revenue, land revenue included, were paid into the colonial purse. That must come. It was the duty of the House and Government to face the question. To carry out the public works policy the Government must have possession of all the revenue of (ho colony, and no further compromise was possible. Mr Gums thought property was already levied on by local rates. It would be unwise at present to press the question. Mr Sutton supported a property tax. Mr Lumsuen thought any new tax should interfere as little as possible with industry and enterprise. No public demand had been made for a reduction of taxation on such so called necessaries as tea and sugar. The County and Rating Acts really had effected an alteration in the incidence of taxation. The House might consider the question, but it was not desirable to rush into a complete change of fiscal policy. He preferred Mr Bowen’s proposal to Mr Woolcock’s. Mr Fishiok supported Mr Woolcock’s motion. The present system of finance could not last—paying subsidies to local bodies out of Loan. Now was the time to face the question. He objected altogether to a common purse, or the North sharing the Southern land fund. Sir E. Douglas said it was doubtful whether the whole Southern land did not belong to the Natives and not to the Government or Provinces. Mr Woolcock’s amendment being carried on the voices, became a substantive motion. Mr Bowen was about to move his amendment, but Sir George Grey rose first and moved an amendment to the effect that a property and income tax should be immediately imposed, so as to enable the people of the colony to be relieved from Customs duties on necessaries. The country had been misled by the financial statement. Within eighteen months the colony would require to borrow five millions more to meet its liabilities. To get this, our finance should immediately bo put on a sounder basis. We could neither stop nor go back, and to get means to go on we should re-arrange our system of taxation. He objected altogether to the system of finance advocated by Mr Bowen, which was almost as ridiculous as Major Atkinson’s grocers’ bills finance of last session. Prospective finance was the duty of statesmen, and the Government were bookkeepers who, however, despite promises, presented their accounts in a most involved and most unintelligible form. A plain statement of the position of the colony was wanted, but could not be got. The Government should this year have brought down proposals to change the incidence of taxation, and take a complete comprehensive view of the condition of the colony —a policy which, while affording relief to the people, would still have met the requirements of the country. Why not impose an acreage tax on land, so that the chief burden should not fall on those who improved their properties, but on those who acquired enormous estates. Extent, not improvements, should bo taxed. Lands acquired from the Natives in the way they had been ; could well bear an acreage tax. The annual j charge for the sinking fund, £IBO,OOO a year, ; should not be continued. This could be done ' without injustice to debenture holders. The people might be relieved of taxation through the Customs to the extent of £350,000 a year on the necessaries of life, such as tea, sugar, coffee, haberdashery, ;candles, kerosene, apparel, drapery, rice, cotton goods. Saving could be effected immediately, within a month, instead of being put off for a year, when probably it would not be clone at all. He would make all land pay taxes. If a man had but one acre, let him pay proportionately, and so be made to feel himself no pauper or communist. Such a tax would nip in the bud any attempt to create a spurious landed aristocracy. Large reductions in official expenditure, probably to the extent of £IOO,OOO a year, could be made. The land fund should also be made colonial revenue, but a portion should still be apportioned for local purposes in roads, &c., benefiting the land. The debate was interrupted at 5.30 p.m. PARLIAMENTARY INCIDENTS. (FBOXI THE COEBESTONHENT OE THE TRESS.) Wellington, August 17. The debat e on the Native Lands Bill dragged very slowly last night, members seeming tired of it. It was expected that Sir George Grey and Mr Ormond would speak, but each seemed waiting for the other, and after the halfhour’s adjournment the question was put. Contrary to expectation, both Sir Robert Douglas’s and Mr Lusk’s amendments were accepted without a dissentient voice, and so the Bill was shelved. To-day the Ministry seem to have got into another difficulty. They intended to move an amendment to Mr Woolcock’s motion, partially approving it, and promising to consider it during the recess ; but it, was discovered to-day that (ho forms of the House would not allow it, and the motion will have to be put as it stands, and before they can put, another motion. Sir G. Grey has an ex tended form of Mr Woolcock’s motion on taxation, which must be first discussed, approving of the abolition of tea and sugar duties, and the imposition of land and property taxes. Sir George Grey is now talking, and giving a summary of what ho said this afternoon, possibly for the benefit of the galleries, which are better filled. He is speaking more carefully than usual, and much more common sense.