GENERAL ASSEMBLY.

Globe, Volume XX, Issue 1421, 4 September 1878, Page 3

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. Tuesday, September 3. THE SHERIFFS. In the Council to-day the Colonial Secretary stated, in reply to Mr Hart, that the amalgamation of the offices of registrar and sheriff had been carried out on the advice of the Law Officers of the Crown. THIRD BEADING. The Literary Institutions Bill was read a third time, and passed. OAMAEU WATERWORKS BILL. _ On the question to go into Committee on the Oamaru Waterworks Bill, a long debate ensued. A motion was made by Mr Waterhouse to commit the Bill that day six months. Ultimately the debate was adjourned for a fortnight. catkin’s river cemetery. The Catlin’s River Cemetery Bill was read a second time on the motion of Mr Reynolds. HOUSE OF REPRESENTATIVES. Monday, September 2. the land tax bill. Mr McLean, continuing his remarks on the Land Tax Bill and the Government policy generally, said—The change proposed by the Government was a delusion, and altogether failed to remedy existing evils. The tax proposed on joint stock companies was the most unfair and unjust Bill ever brought down. Ho felt perfectly sure the Government itself would not support the measure. He thought they might leave the beer tax alone for the present. Ho felt assured the present Government were unfitted to remain on the Ministerial benches much longer, and was convinced that when they went to the country at the end of another year they would realise their position. There was too much quoting of Macaulay, John Stuart Mill, Herbert Spencer, and others. There were many acts of administration by the present Government they would yet hear more about. They did not know for an hour how they stood, and any Government without an Opposition was to be pitied. Dr. Hodokinson thought the Bill imperfect, inasmuch as it was not made to apply to all lands. Small landowners, whose holdings were of the value of, say £4OO, were men who ought fairly to be brought within the operation of the Act. The majority of these had been brought out at the expense of the colony. They had come to one of the finest countries in the world, where wages were high, and by that means they were enabled to acquire these holdings. Taking these facts into consideration, he thought this class was fairly amenable to the taxes. Ho looked upon the provision exempting improvements as a good one. He did not see the danger some apprehended from the proposal to tax joint stock companies. It had been said that its effect would be to drive away capital. So long as they had a complete system of railways, he felt convinced that capital would bo induced to our shores. Ho objected to granting subsidies, which were nothing more than bribes held out to districts when abolition was brought about. . _ . , Mr Macearlane reviewed the proposals. Alluding to the beer tax, he said ho felt convinced it would take at least half the duty to defray the cost of collection. The tax would bo a calamity to the country. Dr. Wallis said that the whole proposal seemed to be this, that the Government proposed with one hand to take taxation off the Customs revenue, and with the other hand to put it on. He was delighted when the Government avowed itself in favor of free trade principles. Ho was also glad to hear that the Government had learnt the lesson of recognising that the unearned increment belonged to the State. It was also a plea in favor of the Government policy that it admitted the importance of imposing a tax on joint stock companies. It showed that the Government was paving the way to an income tux. Ho objected to tbe tax upon beer. The Treasurer had spoken of giving a free breakfast table, but then he proposed to give a dear dinner. It was strange that the Colonial Treasurer should propose a tax of this sort in tho same breath as that in which ho proposed a remission of that on Australian wines; or in other words, that he should encourage what might be called a foreign industry and handicap a local industry ; and it was stranger still that this Government should place additional taxation on the laboring classes ; for the tea and sugar remission, which were supposed to compensate for the beer duty, would not in reality so operate, bepausc tho reraistjons would lead to no reduction whatever in the price of tea and sugar to tho working classes. He charged the Government with gross waste and extra-

vagance, and said that they mended their ways, it would prove their ruin. On the motion of Mr Gisborne, the debate was adjourned till next day. The House rose at 11.45. Tuesday, September 3. The House met at 2,30. PETITIONS. Mr Moss presented a petition from several hundred sons of old settlers at Auckland, sotting forth their hardships and services during the war with the Natives, and praying for such relief as the House might grant, NATIVE STATEMENT. Before going on with the business on the Order Paper, Mr Sheehan said he would not make his statement on Native affairs, if the debate on the Land Tax Bill was not finished. They intended not to proceed with any other business until after that debate was finished. SOUTH SEA THADE. Mr Hobbs asked if the Government would lay before the House any information they possess inspecting the South Sea Islands’ trade. The Premier said a return was in course of preparation, showing what was imported from the different islands. NATIVE COAL ON RAILWAYS. In reply to Mr Murray, Mr Macandrew said tho reason why the railway department continued the use in Otago of Newcastle coal instead of that from Kaitangnta, was that tho latter caused clinkers, and had otherwise been found unsuitable as compared with tho Newcastle coal. COLONEL m’dONNELL. In reply to Mr Dignan, Mr Sheehan said the report of tho Public Petitions Committee regarding Colonel M'Donncll was purely an open one, but tho matter was under tho consideration of the Government. land tax bill.

Mr Gisborne resumed tho debate. Ho congratulated the colony that for the first time for many years it was brought face to face with tho question of finance. The hon. gentleman referred to the Separation scare, and argued at some length to show that the policy of tho Government, as shown in tho way they dealt with land and railways, effectually precluded all idea of separation. The principle of the Government proposals, _ he considered, was the equalisation of taxation, though whether it was carried out in a suitable manner might be open to discussion. Ho recognised in tho proposal an attempt to equalise taxation. It was not class legislation. It was keeping tho promise made last session to adjust taxation so as to make property and incomes contribute more fairly than heretofore. He should have preferred that the Government would have came down with an income tax pure and simple. The experiment had been a great success in England, and was accordingly popular because the tax fell solely upon the wealthy. While heartily agreeing with a land tax, ho thought tho Government might get into difficulties in searching for the “ unearned increment” of land, and he hoped they would the matter. Ho would like to see Government impose some general tax on people in good circumstances, and do away with tho present complicated tariff, and only levy a tax upon a few articles. He was opposed to the beer tax as inconsistent, because it affected tho wages class, and ho hoped it would bo abandoned. He also objected to tho joint stock companies’ tax, bub if the Government insisted on carrying all their taxes as brought down, ho would bo reluctantly compelled to forego his objections to those two taxes in order to see that tho land tax was carried out. But he hoped Government would bo better advised, and would modify their present proposals. He would appose tho amendment. Mr Rowe said it was with regret he had to characterise the proposals of the Government as eminently unsatisfactory and unworthy of the Treasurer and tho Ministry. Ample time had surely been afforded to enable an alt oration that would have been a real alteration to bo brought about in tho incidence of taxation. But what had been done w r as a mere nothing of the wretchedest kind. He argued at consider able length to show tho suicidal nature of the tax “on [joint stock cmimmies. Nothing had done more for New in the past, and nothing would do so muclf in the future as the influx of outside capital, which ought not to be frightened away. He was at a loss to conceive what could have possessed the Treasurer to introduce the beer tax. Such a tax was hardly to be expected from a Ministry supposed to bo in accord with the people. He would oppose a land tax. A simpler plan

would have been to have put on an income tax, which would have yielded more than all they proposed. Mr Kelly thought the Government had not sufficiently considered the question of determining the value of unimproved land. The question was full of complications and difficulties, and the tax would result in great injustice to very many people in the colony. Then, as to not taxing improvements—a rich man might spend thousands on his land, and escape taxation on all the money he chose to expend that way. That was not fair to the poor man. It would be far better for the Government to impose some all round tax that would fall on everyone. The land tax he considered so objectionable that ho must oppose it, but if the Government made it a vital question, he would bo compelled to consider what other course he would pursue under the circumstances. His principal objections were to this tax. Mr Thomson said the House had before it a great deal of financialjpabulum, and it would be impossible in a reasonable time to deal with the thousand and one matters dealt with by the Government. Ho would, therefore, confine his remarks to the Land Tax Bill. The hon. gentleman went into statistics regarding the freehold and pastoral lands of the colony to show that the Treasurer was quite out in his calculations with regard to the amount ho would realise by the land tax. According to his (Mr Thomson’s) calculations, the Treasurer would obtain very much more than was put down, namely, £IOO,OOO. _ Taking the Treasurer’s figures as a basis, it appeared to him that a few of the principal cities would yield that. Any way there was too much dependence placed \ipou the land fund, because that, must come to an end some time. There seemed to be an idea that the Jand could bear any amount of taxation; hut it was a very erroneous idea. Look at the taxes already laid on land by Eoad Boards. Look at the losses farmers were constantly liable to, as in Otago lately, owing to the recent snowfall. There were districts in Otago where the population now was smaller than it was ten years ago, and this was mainly because farming did not always pay. It was not much use, however, to make any great noise over this matter, ns the time was coming when all the property of the colony would be taxed. He disapproved of the exemptions in the Bill. Those exempted would bo far more satisfied if they paid their share. The jointstock companies tax was not fair, as it did, not apply to all who lent money. Exempting lands owned by Maoris was also unfair. The beer tax he did not object to. Beer being a luxury, people should not mind paying a tax to the Government. The debate was interrupted by 5,30,

EVENING- SITTING-. ■The House resumed at 7.30. IAND TAX DILL. Mr Thomson continued. Ho thought the beer tax would yield a much larger sum than was put down by the Treasurer. Ho would suggest to the Treasurer the adyisabloness of adopting the registering machine in general use in the American States, which was an excellent check upon barmen, and the quantity of beer or liquor sold, and if they charged as in the United States, the Treasurer might easily raise a revenue of £IOO,OOO annually. Coming back to the land tax, ho pointed out that many districts not only did not benefit by the public works, but wore seriously injured by those works. .'A fair 'tiling to do would be to lay the colony out into railway districts, arid let every district maintain the railway passing through it, by making up any deficiency in tho working. Ho would support the second reading, but would endeavor to make amendments in committee. njafor Atkinson proposed to, examjno th,e financial and publip. warts uatements, but' would first say a few words on tho public accounts of tho colony.

Last session the Premier and and his supporters continually made charges regarding the public accounts, as if there had been gross corruption in keeping them, and though refuted at the time, by dint of reiteration a feeling got abroad that something very wrong had been going on, and it had been said that when the present Government mastered all the details, they would discover whet would prevent any of the late Ministry ever taking office again. What happened since ? Why the present Treasurer accepted all the figures and statements regarding a surplus and loans that had been set down by his predecessor. This explanation was due to the late Government. The Premier last year when accepting the estimates of the previous Government said ho disapproved of them, and intended to greatly reduce them, and ho could save a hundred thousand easily. The hon, gentleman then quoted from the estimates to show there was no absolute saving effected, as had been promised by the Premier last year. Taking the figures of the present Treasurer he found that, instead of saving a hundred thousand pounds, there had been an excess of expenditure of £7OOO, and this year they asked for £15,000 more than had been asked for by the late Government. Admitting that the present Government wore animated by every desire to economise in departmental expenditure, what a testimony it was to the care of the late Government that the present one spent seven thousand more than the late Government asked, and this year intended to increase it by another fifteen thousand. He would point out that a sum of £73,000, balance of loan, was carried to public revenue. There was nothing that Sir G. Grey denounced so much as carrying from loans to ordinary revenue. Ho did not object to this, and only pointed it out to show that the late Government were not so wicked as they were made out to be. Ho congratulated the Government on the successful floating of the loan, but the whole credit of it was due to Sir Julius Vogel. Ho held that the Government had not acted rightly in sending Mr Larnach Homo. There was no excuse for it, especially after the outcry made when Sir Julius Vogel went Home. Ho referred to the Inscription of Stock Act, which Sir George Grey had described as the most impudent proposal ever made in a Legislature ; and yet Sir George Grey afterwards brought down the same Bill word for word, and now it was the very foundation of the Government finance. Every bit of credit respecting that Act was due to Sir Julius Vogel, and when the colony had got rid of the glamour thrown over it by the Premier, it would resent the treatment of Sir Julius Vogel more than anything else done by the Premier. He considered the estimated expenditure reasonable, but the Treasurer was over sanguine regarding the Customs’ revenue. Coming to the proposals of : the Government. Last year they were told that the financial policy of the Government would bo based on a property and income tax. Ho also referred to the land tax as part of the scheme, and an indispensable feature of the land tax was that no exceptions of any kind wore to bo made. As to the figment called “ unearned increment,” the hon, gentleman proceeded to show it did not touch unearned increment at all, by instancing how the tax would operate on land differently situated in regard to a railway. The tax he considered was merely a tax upon capital invested in land. Their great object was to get land settled, and anything burdening that must retard settlement, Take the hills round Nelson and Marlborough, and north of Auckland, and say whether it was fair to tax these people the same as the holders of land on the Canterbury plains. As the clause stood in the Bill now it was absolutely impracticable. It would break down in the process of valuation. Ho did not know whether ho would vote for the Bill. He certainly would not vote for the amendment. Ho entirely disapproved of the joint stock tax as being partial in its operation, and, like the land tax, a tax on industry. Ho strongly objected to the beer tax, bccqqeo it was the beginning of excise duti?a, and as to thinking that they could get £ {O,OOO from the tax by an expenditure in collection of £SOOO, that waa a delusion. He disapproved of the scheme entirely that was embodied in the three Government Bills, inasmuch as it utterly failed to carry out the promises of the Premier. It allowed all those who lent money on mortgage through their lawyers, tq go free. What Government ought fp do’ to avoid this, would bo to bring in a general property tax, and ho hoped the House vrould compel the Government to withdraw these ohum measures, which were quite unworkable, and bring down a property tax. Then as to the tariff, last year the Premier said the duty on tea, sugar, and coffee, could be struck off instantly. But the Premier was in Opposition then. But he held that the reductions made were not wise, and ought not to be made, because, although the Treasurer estimated a revenue not likely to be realised, he could only show a surplus of some £55,000, and that before the supplementary estimates were passed, and especially when they had to make provision for a, further loan. The tax was pot felt by anybody, and should not be reduced under the circumstances of the colony. If the principles of free trade impelled them to the removal of the grain duty, then timber should be dealt with in the same way. A singular feature of the way in which the tariff was dealt with was the fact that not a single article on which the customs were cheated was touched. Ho did not perhaps increase the tax on working men’s boots, but they did on women’s and children’s, which was .more important. It was clear the Bills before them 1 hadj never received proper consideration or been thought out. Of cov.rsy it could not be expected when so much stumping was going on. As to the Public Works statement the country would not think much of it when i,t | was properly examined. He utterly refused to believe in the Minister of Worbs’ idea of constructing his railways out of surplus. It could not bo done. Before they started their 1 lines they should have their surplus ready, Their only way was to construct their railways out of loans. Another bad foatxq'o 'was that outlying districts won? to be taxed, but not benefitted in any way. They were quite overlooked because their voting power was weak. They were inadequately represented in the House. Then with reference to immigration, the very keystone of their policy, not a|word was said. That was a serious omission. Then there was no provision for roads. Districts were to have no power to borrow or rate themselves, and yet they were expected to make their own roads. Another thing, he could not help believing that the Premier and Minister of Works contemplated cither the restoration of provincialism or separation. The accusation had never b*Geq definitely denied by any membe~ p,I the Ministry. If the Minister Works or Attorney-General would assure him that they abandoned any such id,ea, ho would be satisfied. Ho deprecated the way Government pounced upon the land fund in the Patea district. He had no proposal to make to the House, except in general terms, that the House ought to insist upon the imposition of an income tax, even though it was not brought into force before the end of the year. If the Government did not keep open the country roads they would fail in their duty to the country. The debate is continuum.