GENERAL ASSEMBLY.

Globe, Volume XX, Issue 1441, 28 September 1878, Page 3

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. Friday, Sept. 27. THORNDON RECLAMATION. In the Council to-day, after the transaction of some formal business, Sir D. Bell asked if the Thorndon reclamation had been virtually handed over to the Wellington Corporation, the authority of Parliament not having been yet obtained. The Colonial Secretary replied at length on the circumstances of the case. The arrangement with the Corporation of Wellington was subject to the sanction of Parliament. BILLS ADVANCED. The Otago University Site Bill was road a first time, and the Impounding Bill a third time and passed. On the motion of Mr Hall, the Lyttelton Harbor Board Amendment Bill was read a third time, and the Council then went into committee on the Harbor Bill. HOUSE OF REPRESENTATIVES. Friday, September 27. HIGH SCHOOL EXPENDITURE. In the House to-day, Mr Moss asked for a return of expenditure on buildings, furniture, and fittings of the various high schools and colleges in the colony. Mr Ballance said that not sufllcient information was obtainable to furnish a full return. As far as possible the return asked for would be prepared. DEDUCTIONS PROM SUBSIDIES. Mr Wakefield asked under what authority the sum of £50,000 was deducted from subsidies to local bodies, and applied to hospitals and charitable institutions ? Mr Ballance replied that the authority was in The Financial Arrangements _ Act, 1876. The basis of division was certain instructions to the Treasury, a copy of which was laid on the table. LAND TAX BILL. Mr Swanson proposed that the debate on the fourth clause of the Land Tax Bill be reported in committee. Mr Murray objected, and leave to put the question was refused. GREYMOUTH-AMBERLEY RAILWAY. Mr Richardson asked if the surveys of the railway north of Amberley, towards Greymouth, were sufficiently forward for tenders to be called for ? if so, when they would bo called for ? Mr Macandrew replied that ten miles of the survey were sufficiently forward, and tenders would be called for. WELLINGTON RECLAIMED LAND. The Bill for the sale of reclaimed land in the city of Wellington, was read a third time, and passed. LAND TAX BILL. The House wont into committee on the Land Tax Bill. On clause 3, Mr Whitaker proposed the formation of two funds. The land fund should be applied to railways and public works, and kept quite separate from the ordinary revenue. He was in favor of a land tax, but would propose an amendment that the tax should bo added to the land fund, and applied to meet loans and charges for public works. Now was a convenient time to do this, and if the principle proposed were adopted, on new loans being issued, lot then the land tax be increased to meet that charge. He desired to keep these charges altogether separate from ordinary revenue. A principle of valuation should be laid down by the House. It was done in the United States. A general valuation should be made under the authority of the jio uße i which would be far more satisfactory than the present system. . Mr Kelly did not agree with the proposals made by Mr Whitaker, and thought it better they should be discussed when they were proposed to be inserted in the Bill, and not at present. Mr Bowen objected to the principle of taxing land, without improvements being also taxed. He favored the American system of taxing all descriptions of property. Mr Saunders thought it better to confine the discussion to clause 3. He moved that all the land in the colony should be liable to the land tax, without any exemption. The owner of only £SOO worth of land was not necessarily a poor man. It was inadvisable to leave a power of taxing in the hands of a class exempt from that taxation. Mr Gisborne would move that a penny land tax should be levied, instead of a half* nenny. If this were not carried, he would move that all improvements should he taxed. Dr HodGi-kini3o:T thought small holders wore better able to pay a land tax than the class next above them. Mr Woodcock proposed that the holders of property should pay on a sliding scale thua—Owners of land worth under £SOO, a farthing; from £SOO to £IO,OOO, a halfpenny; from £IO,OOO to £20,000, three farthings ; over £20,000. one penny. Mr GaruiNOaol supported the amendment of Mr Saunders. ' ’ i ' ''

1 Mr BalljAnce contended that some exemption should lie made, because below a certain sum the tax would not pay the cost ol collection. It was unadvisable to increase the tax, as a new lax always pressed unfairly in some instances. The Government proposed in future that all the surplus of the land fund should be paid over to the Public Works fund, ■ • i' .

Major Atkinson said that the two proposals wore distinct. The present Government only proposed to set aside whatever they might have over after keeping out ordinary expenditure. Mr Whitaker wished to set aside the whole of the funds derived from land. Ho supported a general property tax and a general authority to make valuation, and declared that the present proposals would exempt the whole seven millions held on mortgage on land. Mr Stout thought the proposal quite absurd, A tax on mortgages was not a tax upon land. A general property tax included nil clothing, stores, even jewellery, and would be very objectionable. Mr Montoomeey supported the amendment of Mr. Saunders. Mr Bastings opposed the exemptions being done away with. The general feeling of the country had been shown by the tone of the Press to be favorable to the proposals of the Government. Mr Mandees desired a general tax upon land, and hoped that it would pay to collect the tax on smaller properties. It was unfair to exempt mortgages. Mr McLean thought the Colonial Treasurer very fortunate to have so much money thrown at him. Mr Wakefield said the House last year decided that a general property and income tax was required, but that resolution had not been complied with. If such a measure had been brought down four-fifths of the House would have supported it. He would have been one of the warmest supporters. Sir George Grey was bound to support Irhis amendment. Only last year he had said that every man holding property should pay his fair share of taxation, if it were only 3d. He had said that all classes, without any exceptions, should be taxed. But this Bill proposed to exempt the small holders. It was the first introduction of class legislation, and should be resisted accordingly. The debate was interrupted by the adjournment, EVENING SITTING. the floods. On the House resuming, Mr Macandeew read a telegram re damage by floods in the Middle Island. LAND TAX BILL, In Committee on the Land Tax Bill, Mr Wakefield continued. An impression had gone abroad that the Ministry was prepared to make certain concessions. He hoped they would yet do so. It was objectionable to create an untaxed class, and this objection had never been met. It seemed possible that the object of the Bill was to place in the hands of a majority a temptation to tax the minority. The Maoris were to have a dual power of vote but wore to be free from this tax. The working classes were to have a great extension of suffrage, but were also to be exempted from this tax. The class feeling appealed to by Mr Stout had no existence. The large landed estates were being rapidly dissipated, but they were created by the 10s per acre system of the Premier. As for political science, he neither possessed nor desired much knowledge of it. It would be time to refer to authorities when they had agreed among themselves. He was opposed to a land tax, but if one were imposed it should bo upon all land. Ho did not regard it as a party question, because the welfare of the colony depended upon it. Mr Rees said the real secret of the opposition to the Bill was, that most of those who opposed it wore opposed to a tax on land altogether. All property was equally exempted up to a certain amount, as was the case with the income tax in England. This was an integral part of the Bill, and should be maintained. All great questions were party questions, and it was absurd to deny it. Major Atkinson thought this clause was against the principle of the Bill, which was that land had been specially benefited by the public works policy, and was therefore to be specially taxed. Mr Saundees said the best argument he had heard was that they wished to relieve those who were already heavily burdened. The answer to that was that if they deemed relief necessary, the Customs duties should be further remitted. Mr Wakefield had pointed out a groat constitutional objection to this clause —the danger of creating an untaxed class. The proposed amendment was in a perfectly friendly spirit. He approved entirely of the Bill. Mr B Allan ce would accept the amendment in the spirit in which it was offered. The same position existed in England in regard to the income tax, as the untaxed portion of the people might there combine against the tax-paying portion of the community. Mr Swanson maintained that all legislation was class legislation. Members were exempted from juries, doctors were exempted, and many other classes. Ho was in favor of a property and income tax. He desired land to be taxed at a valuation. Mr Caeeington desired to know whether the Government would make this a party question or no, because if it was accepted in a friendly spirit he would vote as he had spoken but otherwise, as a party man, he would vote with the Government on the division. The amendment was lost by 31 to 44, On clause 4 Mr Saundees proposed further amendments, by which the primary value of land should be altered from one pound per acre, and borougli lands be reduced from a £SO valuation to a £25. Mr Wason considered this clause the most objectionable feature in the Bill. Ho proposed that the clause excluding improvements should be amended to read thus —“ all land shall be valued at the capital value thereof to sell.” Mr Gisbobne thought it would bo unfair to claim unearned increment, because the chance of that had been soldwiththe fee simple. It would be much cheaper to take the principle of valuation at present existing. He would support the amendment. Mr Swanson thought the Government had no right to claim unearned increment. He would prefer that no land should be sold, but only leased by Government and improvements paid for at the end of the term. The principle of valuation at the value to sell or to let had been decided long ago. Ho thought it might be as well to allow every man to bo his own valuator, and send in his own return. ' Why should not the whole value of a property be taxed, Mr Woolcock said the difficulty of valuing was more imaginary than Mr Ballance said this was the vital principle qf the Bill, and had been before the country as a distinguishing feature of the Bill. He admitted that there was a groat deal of land in the colony that was not of the value of £1 an acre, and they were prepared to abandon this valuation, and allow valuers to decide the value. Competent valuers must be appointed by a superior authority Mr Bowen said that the ownership of the unearned increment was a matter that had been been considerably debated, and it was an open question to whom it Political economists had not yet decided to whom it belonged. Mr Stout declared that land was always treated as distinct from any other sort of property in every country. The State was allowed to deal with land in a manner different to other property. Mi’ J. E. Beown stated that land America was treated and dealt with by th«s State- just like any other He was in fayor of q goneial property tax. Ho gave - an instance of a mill being erected on a small piece of land which was only made profitable by a railway passing near it. Yet only this little bit of land would be taxed.