THE ATTORNEY-GENERAL'S SPEECH

Globe, Volume XX, Issue 1375, 12 July 1878, Page 3

THE ATTORNEY-GENERAL'S SPEECH

Our Duredin correapondent telegraphs the following fuller report of the concluding part of Mr Stout's speech on Tuesday. On the redistribution of seats and Sir G. Grey's action re the Land Bill, the Attorney-General was silent. THE LAND TAX. On the land tax Mr Stout said :—lt is the fairest tax if it is hedged about with certain provisions. One of the provisions with which the Government intend to hedge it about is this. They believe that industry should not be taxed. Whenever a man improves his land a tax should not be imposed on those improvements. If possible we should get this unearned increment in the increase in value which is gained not by putting improvements on the land. Another thing we have to deal with is that there should be certain exemptions, as Mill and Fawcett point ont. I think that if you exempt all land below the value of £SOO you will succeed in exempting small settlers struggling to get a footing in the colony, and would cast the tax on those who are well able to bear it. [Loud cheers.] The small settlers pay quite enough at present in the shape of customs duties. How are these exemptions to be carried out ? There are two methods. I do not care which is adopted, because it seems to me they practically the sanle. One is an acreage tax, wiih what is called classification. The land is to be divided into various classes, which are to be taxed so as to make the burden press fairly. But really, in imposing an acreage tax with classification, you are practically imposing a tax on valuation, because classification means valuation. Therefore, I do not care whether you adopt that method of an acreage tax with classification, or this method —that the land shall be valued independently of buildings or improvements. That is that the ground rent should bo valued and not the mere buildings put up. If you had this ground rent valued independently of improvements, and also allowed a certain deduction, then you could pay your tax at ao much in the £. I beliove if that was dono it would be a fair tax. It is true it would be a direct tax, but I believe we shall never be able to get any economical administration until we bring the taxgatherer and the people face to face. Once the people have to pay the money out of their pockets they will see that the money is not lavishly or foolishly expended. This reform, which should be carried out, would be of great service. Contrast it with the other scheme which is proposed to the electors of the colony. We had an exMinister, for whom I have the greatest respect, saying that he would like to see — What do you think ? He wished to have a police and educational rate : that is, two rates. My first objection to such a tiling is that it would be creating two machineries, and that it would be an expensive thing to collect. Then there would be the objection that it would be a tax on industry, because you would be taxing improved and unimproved land, would be higher in fact on improved than on unimproved land. But the third and greatest objection of all, which I wonder has not been seen, is that it simply means that the outlying districts—districts, say, where there are perhaps hundreds of thousands of acres of land with nothing on it but a couple of shepherds' huts, the homesteads, the shepherd and his dogs, and the sheep—would not need any police or education rate, because the sheep would not require to be protected, nor the dogs require the schools. [Laughter.] Tne result would be this—that"these large properties, which are increasing rapidly in value, and not helping settlement, will escape scot freo from all taxation, while the burden of direct taxation will be cast on our town, suburban, and struggling rural population. I consider that that taxation would be certainly liable to the charge of class-taxation, which is not the case with the taxation which I have shadowed out as that which the Government intend to propose. There are various other things in reference to taxation which I could dwell on, but I think I have told you sullicient to show that the measures which the Government propose are fair to all classes of the community. Something has been said in reference to a "Bursting up tax." Gentlemen, if I had my own way, I should be prepared to prohibit any man from holding beyond a certain area; but unfortunately, in my opinion on this question, as on the licensing question, I am only part of the minority. I say if our system of taxation, which will exempt small holders, meons the bursting up of estates, we cannot help it. We are following out this taxation according to the highest dictates of wisdom. If it burst up the estates, so much the worse for the estates, we should act upon the old maxim, " To do right though the Heavens Bhould fall." We should have a proper system of taxation, though these things should happen. I am not, as a member of the Government, advocating "Bursting up." lam simply advocating a fair system of taxation. If it bursts up these estates they should not be there to burst up. QUESTIONS. In answer to questions, Mr Stout said — The ballot is practically secret. If there is any means that can be adopted to prevent double voting and dummies voting, I should be glad to see numbers done without. I will think the thing over, and if the same end can be attained I should not desire to see numbers retained on the papers. I believe the mistake that was made was in the late Government allowing the Proudfoot prosecution to become a quasi private one. It ought to have been gone on with as a Government prosecution straight through. I have been informed the present Government were advised by the permanent law ofiieer of the Crown, and it never became a political question at all 'that Government could not possibly carry on prosecution in the absence of wit nesses. and the result would have been an acquittal had they gone on without them. The case is Blill pending. All the Government could do would be to punish witnesses for their absence, which I do not think is a desirable thing to do. Government had no option but to enter a nolle prosequi. Mr Larnach did not leave his resignation here. He did not draw any salary while away, and Government did not pay his passage home. So far as I am aware, there is no intontion to hand over any confiscated laud, except some small

portions promised by the late Sir D. McLean. No new promises were made. On the contrary, the Government are doing all they can to get surveyed some of the richest land in all the North Island—what is called Waimate Plains, —and I believe it will be in the market within two months. Certainly reserves are promised, and properly promised, to be made in the W:>ikato. It would be an improper thing to take all the land away 7 from the Maoris. It would be gross inhumanity to do so. [Applause.] OPINIONS OF THE DUNKDIN PRESS. The " Herald" says : —" Except law reform there is nothing new in the speech, which confirms the belief recently grown up that the measures would be of a more conservative character than Sir G. G-rey led people to suppose. It is evident the Premier and Attorney - G-eneral hold more democratic doctrines than tho rest of their colleagues, and found it needful, in order to preserve harmony in the Cabinet, to yield a good deal to the political timidity of the latter. This is particularly not iceable in reference to the franchise. Manhood suffrage virtually disappeared from the Draft Electoral Bill, which has assumed the shape which tho staunchest upholder of the rights of property may face without much dislike. Mr Stout's explanations about the Electoral Bill are full and lucid, hut why did he avoid mentioning the redistribution of representation ? Is it true Government have abandoned this part of their programme, and existing inequalities are to be allowed to continue for another year ? It would have been interesting to learn the Attorney-General's views of the probable effect of the land tax upon the working of the county system, but he neither touched that point, nor the very important question whether or not the county system is left undisturbed.

The " Times" admits that manhood suffrage • so distinctly enunciated as part, of {he Ministerial policy has been shorn of its terrors. It approves of the female franchise, but thinks if New Zealand is to take the honorable position of lending in this measure of justice to the weaker ?ex, there should be no half way in its limitation, but the two sexes should be treated with impartiality. The question of taxation has now been plaoed before the country in a light which cannot possibly be misunderstood, and it must be admitted that Mr Stout made out a good case for a land tax. The address is a most valuable addition to the stock of information as to the future policy of the country. It is liberal, democratic, even radical to an extent vsry unusual from the lips of a Minister. The "Star " considers the speech as a political oration, a masterpiece, and amazingly confidential for a Minister. It comments on the absence of reference to the readjustment of representation, and says:—Mr Stout is very well aware the Atkinson Government had determined and had announced their determination to propose a property tax long before the " crisis "of last session. He also knows well that the House by resolution directed such a measure to be prepared at the time the " Liberal " party was still in embryo, and had not even erected a platform upon the purloined planks on which their leaders were to stand. A few meaningless generalities form about the sum total of the " administrative plank " upon which the AttorneyGeneral paraded. He says nothing about moneys waited by acceptance of "hole and corner tenders, "jpf flagrant ahu-e of patronage, of expensive subsidies to loud-mouthed unscrupulous journals, whose circulation fortunately curtails their powers of mischief. Ho is wisely reticent as to the expenditure upon Ministerial stumping tours and yachting excursions provided for political supporters. His silence proves one thing satisfactorily to his constituents —that he has not allowed his position or his associations to entirely dissipate the sound commonsense for which he has been distinguished.