GENERAL ASSEMBLY.

Globe, Volume XX, Issue 1418, 31 August 1878, Page 3

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. Friday, August 30. FIRST READINGS. In the Council to-day, the Colonia: Secretary introduced the Rating Ac Amendment Bill and Counties Bill, whic) were both read a first time, and the eecom reading fixed for Tuesday next. JACKSON’S BAY. Captain Fraser moved—“ That all ex pendituro on Jackson’s Bay settlement shoulc cease.” The Colonial Secretary promised stric enquiry into the subject. The motion was agreed to. MARTIN ANNUITY BILL. The Martin Annuity Bill was read a second time without opposition, but Mr Reynolds deprecated such a precedent as the altering ol a Pension Act. BILLS ADVANCED. The Dangerous Goods Act was read c second time, almost without comment, also the Juries Act Amendment. Both wore introduced by the Government. The Colonial Secretary moved the second reading of the Civil Service Amendment Act. The principle of the Bill was agreed with by the members, but some exception was taken to tho details. The Bill was read a second time. DUNEDIN BANQUET. The Speaker announced tho receipt of a message inviting members to be present at the Dunedin banquet on September 7th. He had replied that several would attend. SAYINGS BANK PROFITS. The Council then went into committee on the Savings Bank Profits Bill. HOUSE OP REPRESENTATIVES. Friday", August 30. The House met at 2.30. SUNNYSIDE ASYLUM, Mr Turnbull gave notice to move for ten thousand pounds being placed on the supplementary estimates for improving the Sunnysidc Lunatic Asylum. GRAND JURIES. In reply to Mr Wood, Mr Stout said tho Government did not intend this session to introduce a Bill for the abolition of grand juries. RAILWAY TO REEFTON, Mr Woolcock asked if, during the recess, the Government would cause a survey over a lino of railway from the nearest available point of Brunnerton and Amberlcy lino to Reefton, with tho view of a branch lino being constructed under the District Railway Act. Mr Maoandeew was understood to say ho would have no objection to obtaining a surrey if a company were prepared to construct the lino. ERROR IN TEE lAND TAX BILL, Mr Fox called the attention of Government to an error in the Land Tax Bill, by which it read a tax of a halfpenny in the hundred pounds instead of a halfpenny per pound, Mr Ballance explained that that was a printer’s error, but an obvious one ho thought. STATEMENT ON NATIVE AFFAIRS. Mr Sheehan announced that on Tuesday next he would deliver his statement on Native matters generally. CENSUS RETURNS. Mr Thomson asked when tho results of tho census taken in March last would be ready. Mr Ballance said the complete returns would not be ready before next session, owing to press of printing work. Tho agricultural returns would be ready in a few days. MORE HARBOR BILLS. Nine more Bills for endowing harbors were read a first time, imprest supply. Mr Ballance announced that on Monday next ho would ask for another imprest supply. SUGAR DUTY AND BONUS. Mr Sutton asked whether the AgentGeneral had been advised by cablegram that the Government propose to reduce tho duty on sugar; whether tho notification, as published in the “Gazette” of August 15th, promising a bonus of £SOGO for each island on tho production of 500 tons beet sugar had been withdrawn. Mr Ballance said tho Agent-General had been advised of the proposed reduction, and the bonus for production of beet root sugar had not been withdrawn. ADMINISTRATION BILL. Tliis Bill was further considered in committee, disqualification bill no. 2. Mr Stout moved the sqpond reading of this Bill, which proposes to prohibit civil servants and contractors from sitting in tho House, and provided for another executive officer without a seat in tho Cabinet in tho Legislative Council.

Mr McLean would not oppose the second reading, but thought the Attorney-General might have been more open with the House, and told them that the real title of the Bill should hare been a Bill to preserve the purity of the Parliament, and indemnify the Executive Council for having illegally held their seats.

Mr Stout—l will strike that clause out if you like. Mr McLean went on to quote from the Acts to show' that members of the Executive Council required indemnification, especially the Premier. Mr Barton hoped the Bill would be made to apply only to contractors and Civil servants, He also wanted to see those large tenants of the Crown disqualified from coming to the House to legislate on their own behalf. They legislated without pay, but they did so in their own interest more than for the people. While this was allowed, ho thought the Bill ought to be called one for preserving the impurity of Parliament. Large runholders came there, and voted in a block to keep themselves in possession of the lands of the Crown, on which they fattened, and to prevent payment to members, so that poor and liberal men could not afford to come to Parliament, Therefore there wore not enough representatives of poor men. The hon. member complained of the English system in regard to the elevation of judges not being followed in the colony. The hon. member then proceeded to inveigh against the squatters’ class, which came to the House for what they could pick up. The tenor of his remarks was in reference to the Canterbury squatters. Mr E.OLPESTON raised a point of order. The Speaker said the language of the lion, member w r as exceedingly indecorous, and in bad taste. Mr Baeton then went on to say that as the present Bill did not touch the wealthy woolgrowers, ho would oppose it. The present Bill, and previous Acts on the same question,

had the effect of turning tho House into a stronghold of a particular class. Mr Stout explained that, so far as he was concerned, he did not come within tho terms of tho Disqualification Act, and any irregularity which might be traced to some members of the Government, he attributed entirely to the Government having been without the services of an Attorney-General at tho time of tho appointments being made. The Bill having been read a second time, was at once committed. After a protest from Mr Barff on section 6, which reads that “No member of the Legislature may bo appointed a civil servant within twelve months after ceasing to bo a member under a penalty of £SO a day,” It was moved that the word “ any ” ho substituted. A division was taken, and tho word “ No ” retained by 56 against 19. The debate was interrupted by 5.30. EVENING SITTING. Tho House resumed at 7.30. TUB GOVERNMENT PROPOSALS.

3 Mr Ballanoe in moving the second readJ ing of the Land Tax Bill, proceeded to ex- ‘ plain that, having invited debate on tho I whole of the Government policy, ho would not confine himself to tho Bill under dis- ; cussion. Referring to the colonialisation of ' the land fund, ho said that though the direct ’ gain through that had only been £91,400 in 1 the half-year, tho indirect gain was much larger. Tho land fund in many of the , provinces did not come up to the estimate, ' and had it not been for tho surplus from Canterbury and Otago, there would have been a deficiency of more than £27,900, and nstead of having a surplus and being able to remit taxation, the Government would have had to propose fresh taxation. Referring to the reductions in the tariff, the Treasurer pointed out that tho taxes upon tho articles of the breakfast table were considerably higher (double in some instances) than in any of the other Australian colonies, and after the proposed reductions there would still be a largo per-centage in favor of the other colonies. As to a land tax, he was surprised to see such an amount of opposition to a tax so fair in principle. He drew a distinction between land and improvements, tho latter being the result of industry and perseverance he thought should be exempt. It had been a constant cause of complaint amongst settlers of the agricultural class that the more they improved the more they were rated. Tho hon. gentleman drew a vivid comparison between the legitimate settlers upon tho land and tho mere speculator, who bought land merely to hold it with the object of selling at an immense profit, when tho land had acquired great value by tho industry of tho legitimate settlers round about. It was the theory of encouraging tho industry of tho first class, and compelling the others to contribute towards the benefils derived from the industry of the former ; that was tho principle which ran all through the Bill under discussion. Stuart Mill adhered with great tenacity to tho principle that the State by right ought to own tho unearned increment on landed property. But tho Government felt to adopt that principle would be a discouragement of industry, and therefore they only proposed to take a portion of the unearned increment. It had been argued that the tax would fall more heavily upon rural land than upon that in the cities. But he disputed that. No rural land in tho country had shown such an increase in value as city land. The Marquis of Westminster, supposed to be the wealthiest man in tho world, became so by the purchase of land in towns, which increased annually in value. Tho very same causes were in active operation in this colony. As a proof of tho fairness of their proposed tax, he might instance the general satisfaction with which they were received in all parts of tho colony. Not a single word of objection had been heard. This tax, too, had tho merit of simplicity as compared with what was commonly known os tho “All round tax,” which was seen in operation in the United States, and which the most eminent authorities considered as unfair and unequal in its operation. Some of the smallest States paid as much as the great State of New York. Tho Government had decided from motives of expediency not to subject tho Maoris to the proposed tax. Any one reflecting upon the different circumstances of the two races, their surroundings and influence, would, ho believed, admit the inexpediency of subjecting the natives to this tax. As to an income tax tho hon. gentleman pointed out that even in England it was an exceptional tax, levied for war purposes generally, or in cases of urgency. Tho income tax in America had not been attended with tho success anticipated from it. Another ' reason why they should not impose an income tax was the fewness of large capitalists in the colony. But it was a different matter in the case of the income tax on joint stock companies’ profits, which represented the savings of the wealthier classes. Touching the beer ! tax, he argued there had been no complain to speak of, certainly no well grounded com plaint. Neither working-man nor publicans ; objected. The hon. gentleman then proceeded * to controvert the arguments raised by brewers 1 against tho tax. He pointed out 1 that the revenue had lost largely in ' consequence of tho high protective duties placed on it to assist tho colonial 1 brewers. Had tho duty of only sixpence a ! gallon been retained upon English beer, the revenue from it this year would have been £90,000, whereas the amount collected from ‘ the tax was only £23,000. After all the tax fell upon tho consumer, and ho did not feel it. Ho would, as cheerfully pay tenpence ns J eightpencc. After careful inquiry it was esti- 3 mated that £40.000 per year would be derived : from the tax, and, owing to the simplicity of 1 the tax, tho collection of all that sum would not cost above £SOO per annum. The New Zealand brewer was more highly protected ' than the brewers in any other colony, and l would still bo more highly protected, . and therefore had no reason to complain. - Coming to the tariff, that was a question which must necessarily evoke a largo amount ( of opposition. Tho object of the Govern- J merit had been to encourage free trade, and f which, from the unrivalled position and re- 1 sources of tho colony, must ultimately prove J of incalculable benefit to the whole colony. 1 It was very unwise of tho Legislature to pro- 1 tect the produce of one part of tho colony 1 against another. The non. gentleman quoted statistics to show that no danger need be ap- I prehouded from free trade, inasmuch as New ] South Wales (which, like New Zealand, ( subsidised tho San Francisco service) < had only received in tho last year I £37,000 worth of grain from California, < while New Zealand sent to Sydney ] £46,000 worth. It appeared to him that at I this time of day, it ought to need no argument to convince the grain-grower that protection < was not his friend. Comparing one colony I with another, as regards the effect of protection, tho hon. gentleman pointed out that I New South Wales, with a much smaller popu- ] lation, had a greater revenue than Victoria. 3 For the last ton years the exports of Victoria had not increased, while in Now South Wales i from 1866 to 1876 the revenue increased from 1 nine millions and a half to thirteen millions. 1 These, and many other instances that could £ be cited, went to show that the true t policy of the colony was to have its ports as j free as those of the mother country. While 1 they did not disturb some duties that at £ present were necessary for revenue purposes, i they purposed not to levy any more duties for 1 protective purposes. As regarded the tax on boots, it did not fall upon tho working man, 1 for the simple reason that ho got his hoots i made in the colony. Tho change of the ad 1 valorem tax would put an end to tho organised 1 system of fraud which had been growing up. s One case had been brought under his own 1 notice by an importer, who had received two 1 invoices, one for the purpose of passing the 1 Customs, the one 30 per cent, below the 1 other, and similar instances were numerous, f The hon. gentleman eat down amidst ap- f plauso. f

Mr WooiCOCK, who followed the Colonial Treasurer, expressed regret, that Government had not seen their way to postpone the debate in consequence of the illness of one gentleman (Major Atkinson), not in Ids place, who was in every way qualified to criticise the proposals. The House being free to criticise any part of a Government proposal,

the bon. gentleman, while praising the Minister o£ Works for the clearness of his statement, considered that the great scheme of the hon. member would bo rendered impracticable in consequence of the inadequacy of ways and means. He argued that it would bo better to borrow at an early period money to carry out the proposed works, and reserve their land until tho advancement of the works had given it a higher value than it sold at tho outset. Even if the scheme proposed were 'possible, and they placed the land in tho market periodically during the construction of the works, it would be highly impolitic to do so. To do that would be playing into the hands of land speculators, and to forego tho opportunity of bringing into the treasury a large sum of money. While granting tho boldness of the scheme, he urged that it was better to increase tho present debt and cling to the land that soon would be so much wanted for Inna fide settlers. He disagreed with the tax on joint stock companies, which were but an aggregation of small capitalists, who represented tho current capital of a large section of the community. I Why tax these, whose profits might be counted by tens of pounds, while those of the largo money lending institutions, and which went free, could bo reckoned by thousands. The fact was tho tax was only calculated to catch tho small fry, and lot the large fish go free. Had they placed six of tho largest capitalists of the country upon tho Government benches, they could not have done better for themselves, or more to crush the small capitalists of the country, and those great industrial machines on which the prosperity of the country so largely depends. He would not touch tho beer or land tax, as he agreed with both, though there were peculiarities in regard to the mode of levying the land tax that he would like modified.