GENERAL ASSEMBLY.

Globe, Volume XXI, Issue 1792, 18 November 1879, Page 4

GENERAL ASSEMBLY.

HOUSE OF REPBESENTATIVES.

Monday, Novembbb 17. Tho House met at 7.30. NOTICES. Sir G. Gbey gave notice to ask if the Government were prepared to give an order far fifteen or twenty locomotives, to be built in the colony, on a satisfactory assurance of the efficiency of the manufacture. Tomoana gave notice of the Maori Representation Act Amendment Aot. Mr Beowk gave notice to move that maps and plans, showing the position, quality, price, &c, of all waste lands open for sale and selection, be on view at all land offices throughout the colony. SUPPLY. A message from His Excellency was read asking for supply to 30th June for salaries and contingencies. Major Atkinson said he had proposed to go into Committee of Supply next day, but as the message had been received he would take it now. Sir G. Gbey asked if the hon. gentleman would go into committee next day, or at an early date ? He wanted the assurance in order that he need not move anything he intended to move that evening. Major Atkinson said he wonld give tho assurance. Mr Macandbew said that when the Colonial Treasurer made his last brief statement, the House was informed upwards of two millions of the new loan had been forestalled. He asked for a statement showing the contracts entered into, amounts of tenders outstanding, dates of completion of works, &o. But although a month had elapsed, no answer had been made to the request. If the Government desired, they could have furnished the return in a few days. He did not wish to hurry the department, and should be satisfied if he received an assurance that it would be forthcoming in a few days. Major Atkinson apologised for the delay, although it was not in his department, and assured the hon. gentleman that the return would be supplied within a day or two. It had taken longer than had been expected to get necessary information. An Imprest Supply Bill "of £250,000 was then passed through all stages. The Colonial Treasurer then proceeded to deliver his financial statement. After the financial statement, Mr Macandbew said he was dissatisfied with the spirit of the proposals, and decidedly objected to the statement that the position of affairs was greatly due to the late Government. Tho allegation that any works had been undertaken without the authority of Parliament could not be supported, because any work of the kind would be found to be covered by the vote for unauthorised expenditure, when the necessary information for which he had asked was forthcoming. If they had come boldly forward and said that these financial extravagancies, inaugurated under the authority of the continuous Ministry, must cease, the publio would have applauded them, but it was not fair to impose this fresh tax upon population without some warning and discussion. Mr Montgomery asked when the Property Tax Bill would be brought down. Major Atkinson replied the next day. He hoped the Bill would be circulated by Wednesday. Sir Geo. Gbey said some discussion was necessary on the points raised. Ho denied that our finances had drifted into a bad state, as alleged by the Colonial Treasurer. He felt certain that the real difficulty was the stoppage of the land fund, which had suffered a temporary failure, but it would ultimately rise to a larger figure. As to the deficit, the hon. gentleman and his friends were responsible for it. Every man in New Zealand knew that the present Government were put into office for the purpose (principally by the Bank of New Zealand, the Upper House, and men of property in the land) of getting rid of this land tax. The Government which initiated the gridironing system of Canterbury might be expected to act in this way, to get rid of the land tax at all costs. Large landed proprietors in New Zealand had got hold of the best portions of the colony, and the tax thereon was now to be swept away in order to facilitate the retention of this land by large holders. The object of the tax was that these estates should be broken up in order that the colony might no longer be in the hands of a few and the laboring classes kept out of possession of their share of the waste lands of the colony. The speculator was now to be exempt from all taxes on the land which he may hold for the improvement by his neighbors without any expenses or contributions towards the taxes of the colony. The deficit might have been met by a tax on land in Buch a way that the duty would have been fairer than in Victoria, and without the necessity of imposing taxes on Customs duties." No explanation had been given of any intention to impose an income tax, although by this means some £300,000 or £400,000 might have been raised without affecting the poorer classes. This would have raised the revenue equal to all requirements. It was intolerable that those reaping all the benefits from this colony should be exempt from taxation at the expense of those least able to make good the deficiency. They were told the deficiency to be accounted for amounted to something like £BOO,OOO or £900,000 per annum, but it was not fair to say that this would continue, because we have reproductive power quite equal to the emergency. It was a gross misrepresentation to say that the land was to be merged into the Property Tax. It was merely a blind to hide the real intention of palming off the burden upon those least able to pay. It appeared to him that the system of borrowing was to be continued as before. They had not been informed of auy intention to the contrary. He feared that they might bring on a depression which was not at all necessary in our present condition. When where the railway works to be continued, and the line carried through to Taranaki. If they wished to economise, let them get rid of an extra immigration establishment at Home, increase the tax on land and tax incomes above £3OO per annum. They would not need to tax improvements in the country, which must be a great blow and burden to the people. He hoped the House would not assent to these proposals, but make a firm stand against them. He hoped that an income tax would be passed, and that land held for speculative purposes would be taxed. If the hon. gentlemen refused' these their tenure of office would be short. He deprecated the large holdings, such as the 85,000 acres of Piako lands given to one individual for £5600. That transaction was a disgrace to all concerned. The people were not represented by the Government or by the Upper House, who actually controlled this House. He was filled with indignation at all these things, and every honest man should feel the same as he did. He believed that men would yet rise and say that they would not be represented by mere nominees. Mr Wood contended that nothing could be done with such debate unless they had the statement fully before them, and had time to study. The statement that the finances were not in a bad way was the merest sham and delusion. They knew that of the £5,000,000 to be raised no less than £3,000,000 had been expended in advance. This state of affairs was the result of the financial expenditure extending over the last nine years, but he did expect that the late Government would have done more to economise in the excessive expenditure than they had. One great source of deficit was the non-paying character of railways, and under these circumstances it was folly to ask that lines should be continued. He quite approved of the suggestion to dispense with the Agent-General's office in London. The intention did not seem to be that of getting rid of the land tax, but to increase it by merging it into other and more extended taxes. There could be no doubt that the financial situation was a grave one, and it would not do to say that they should not interfere.

Mr MOSS characterised the statement as the most cold-blooded which could possibly be uttered. He suggested they should begin with the highest salary in the land and ask for a reduction to assist in meeting the deficit, instead of adopting the course they had. They should first exhaust all sources of direct action before coming to the indirect. The resolutions re new duties and determination of deads were then reported to the House and adopted.