GENERAL ASSEMBLY.

Globe, Volume VIII, Issue 987, 24 August 1877, Page 3

GENERAL ASSEMBLY.

[By Telegraph.] [per press agency.] HOUSE OF EEPEESENTATIYES. Thursday, August 23. The House met at 2.30 p.m. HR G. E. BARTON’S PETITION. Mr Sheehan said he intended, in reference to Mr G. E. Barton’s petition, to move tomorrow that on Tuesday next the House go into committee of the whole to examine into the allegations of the petitioner and deal with the petition. NEW BILLS. Auckland College Grammar School M anagement (Lusk), Dunedin Municipal Deserves (Larnach), Port Chalmers Library Deserve (Reynolds), Lawrence Water Works (Brown). INCIDENCE OF TAXATION. —RESUMED DEBATE. Mr Pyke’s amendment was agreed to. Sir George Grey moved to insert the word “ general ” before the word “incidence,” and strike out the words “ by expenditure on public works.” Mr Stevens thought the financial proposals of the Government demanded further opportunity for the grave consideration of the House. So important were the questions involved that he hoped to have an opportunity for fully considering these before the end of the session. On the immediate question before the House there seemed little real difference between the two sides of the House. All seemed to agree that no change was possible this session in the taxation. He bad always approved of the imposition of direct taxation when necessary, either to raise more revenue or to rearrange the Customs. He had expressed this view in 1863. He thought the acceptance of Mr Pyke’s amendment by the Government made a great difference in the question, as it proposed to tax professional earnings by income tax. He implored the House to consider what it was doing. He most strongly objected to inquisitorial investigations of professional earnings, trade profits, and industrial returns. He hoped the Government did not feel themselves pledged to such a tax. He could not vote for such a tiling. Ho objected to an acreage tax. Ho did not believe such a tax woidd burst up large estates. To reduce the Customs revenue would injure the credit of the colony and its borrowing powers, and so injuriously affect the laboring classes by interfering with public works. This would also injure small farmers by preventing the improvement of means of communication. He was opposed to a tax on mortgages, as it would fall not on the lenders but on borrowers. Regarding the land fund, a speedy determination of the question woidd be required, but a definite permanent settlement of a substantial portion must be made to districts in which it arose. He regretted the Government had not promised simply next session to revise the whole question of taxation, imposing such an amount of direct taxation on property as was desirable, and re-arranging the tariff so as to render it more equitable, but without increasing the total amount from Customs.

Mr Reynolds objected to an income tax, and in voting for the motion wished this to be understood.

Major Atkinson assented to Sir George Grey’s amendment, and said he hud, last recess, considered the question of taxation, but seeing it impossible to do anything this session, he had simply shadowed forth in the Financial Statement what was, as Mr Stafford had surmised, in the minds of the Government. They had really no information on whicli to base any definite proposals. A property tax he thought necessarily included an income tax, but many incomes should be exempt. These were matters of detail requiring grave thought, which the Government had not yet been able to bestow on the question. They understood the resolution as directing the Government to fully consider how all descriptions of property could best bo made to contribute fairly to support the burdens of the community ; also, how, if possible, necessaries ol lilc could to some extent be relieved. The Government held themselves, on full consideration, at liberty to make such proposal in tins direction as might be most desirable, and to propose such exceptions as they might consider just. Mr Reader AVood thought both the Government and Opposition had gone mad on the question of taxation, discussing it without any materials or facts to go on. No one had shown any necessity for considering the matter. If so important why had not the Government mentioned the necessity in the Budget. Night after night the House had been crowded in all the galleries like a theatre, yet the discussion was as great a farce as had ever been played. It was absurd to talk about definitely settling the land fund or anything, for the last seven years the House had every session definitely settled something only to unsettle it in the following session. All that the Government shadowed forth in the Financial Statement was that, if Canterbury and Otago objected to the land fund being taken, direct taxation was the rod in pickle for them. He thought the interest now shown in financial questions compared strongly with what formerly had been shown, and was really due to the fact that our finance was in a perilous condition. Something must be done to give sound and stable finance, but both sides were disorganised and neither had a leader. The Government policy was last year muddled along on Treasury bills. AVe would do the same this year, and as to next year, sufficient for the day is the evil thereof. Ministers had lost a splended opportunity. They should have brought down proposals to place the finances in a state of equilibrium. Had they done this they would have occupied a very different position from the present, harrassed by enemies, deserted by friends, patronised by the member for Timaru, and laughed at by everybody. The Government were like a pair of silk stockings darned till not a vestige of the original stocking remained, AVliat silk stockings were they now ? The Government should bring down a plain definite proposal to make the land fund colonial revenue, but as they would not lie would move the following amendment “ That in the n|iinion of the House, owing to the necessity there was Just year ol iug mart of the ordinary expenditure of the country by the issue oi Treasury Bills, and the fact that by the Treasurer’s statement the receipts and expenditure of the current year cannot be equalised with the appropriation of land fund made by the 16th section of the Abolition Act, the land fund should, at once be made part of the ordinary revenue and appropriated by this House.” Mr AYood then at considerable length criticised the Financial and Public AYorks statements and the Government railway management. He had consulted no no one about his amendment. He had no .party object in it, but was determined to force discussion on the question.

The Speaker ruled that Mr Wood’s amendment was irrelevant.

Major Atkinson’s motion, as amended by Mr Pyke and Sir G-. Grey, was then agreed to. Mr Wood then moved his amendment as a substantive motion on the proposal to go into committee of supply. The debate was adjourned till to-morrow.

PAELIAMENTAEY INCIDENTS,

[from the correspondent of tile press.] Wellington, August 23. The debate on taxation was continued last evening, and a division on Mr Murray’s motion was taken. Some members were very confused on the subject of voting. So as to enable Major Atkinson’s amendment to be put, the Government had to vote for the Opposition, and vice rerun, but the members, as the numbers are recorded, are almost identical with the Government majority on the question. Having lost the first division, there seemed signs of more obstructive amendments by Mr Stout and others, but on the debate being resumed this afternoon they were negatived without division, and Major Atkinson’s amendment was carried. Mr Stevens made the first important speech against the necessity for income and property taxes. It was a pity he did not speak earlier in the debate, especially previous to the Government committing themselves to an introduction of an income tax next session. There is nothing more at present threatening the serenity of the session. This evening the House resumed the debate on the second reading of the Local Option Bill, which is expected to bo concluded to-night. Mr Hislop is speaking drearily as I send t his.