PARLIAMENT

Hokitika Guardian, 27 August 1917, Page 1

PARLIAMENT

THE COUNCIL. WELLINGTON, Aug. 24. AFTERNOON SITTING. The Council met at 2.30 p.m. The Juries Act Amendment BUI passed its second reading by 13 to 2. The committee stagy will'be taken. next week.

THE ROUSE. Tin. House met at 2.30 p.m THE BUDGET.

Air' Walker resumed the debate on the Financial Statement.

Sir Joseph Ward replied on the debate. X •

The -Minister gave a comprehensive and interesting outline of the Governnumt’s big financial proposals for raising New Zealnad’s'war expenditure for the current year, lifting tlie veil of the Taxation Department’s problems during the past year, to members, and enabling them to appreciate the reasons for, the radical divergence pf the 1917 money raising proposals from those of 1910. Sir Joseph AVard also afforded members several v.ivid glimpses into the • big- Finance Bill which he will introduce in the course of a few days, and forecasted the Government’s intention of catching big financial: malingerers on one hand and of its proposed clemency yi people at the other end threatened with excessive taxation burdens. Referring to the land and income itax the .Minister said: he. did not hold Hi the. view taken by some members lint the extra taxes should continue longer than was required:- This taxation>for the current year was just a little over 40 per. cent off the income of people who were being called upon it. How much further did any member desire to go? Ho contended it was the duty of this country to reduce taxation in every direction as soon as possible after the war. (Hear hear). The duty to the country was to levy taxation now only to the/ extent necessary to provide every necessity in connection with tin- war and provide for soldiers and their dependents and ordinary expenditure. Countries which after the. war, could- say they had. the lowest taxation, irrespective of taxation for policy purposes, were going.to he in a better position to compete with other countries and to develop their resources. AiORTGAGE CONCESSIONS. When .the taxation Rill came down it would be found to contain a proposal ’giving sonic relief to tile nmn with a 'small mortgage. .Hi* was as strongly opposed to the idea of taking a man on his mortgage as any other member was, Ini t hard facts had to be faced. A substitute had to he found, and not one member had suggested any substitute. (Hear, hear, and laughter). INGENIOUS EVASIONS.

As an example of the difficulties the taxing department had to contend against with ingenious people, determined to evade their just share of taxation, the Afinistor cited the following instance of what might, be sa'd, be called smart, but which was at' - the same time legitimate as the law stood. One business firm, possibly there were others, towards the end of the financial year gave, a mortgage to a hank over its premises for the purpose of securing its overdraft. The day before ill,' end of the year it increased its overdraft to such an extent that when if deducted the mortgage from the tax it had; to tax to pay whatever. Mr. Noswortliy: That was a sharper's trick; CATCHING .FINANCIAL AIiALLIN-GER-S The Alinister went on to say that •peoplo who contributed to the last war loan had, in many instances borrowed 90 per cent- of the. money they paid; into the loan. There were dozens of instances—lie was one himself—who felt it their duty to pledge securities for the AA’ar Loan. The people of the country generally had nobly responded to the call for war money, but it was a regrettable thing to have to'say that some- people and wealthy people, had done and were doing nothing at all. The Government proposed in legislation the House would get later, to ensure quality of sacrifice for the purpose, of. saving the country in this respect and: he did not believe any rational person, in the country would take- exception to the course they proposed’. (Heat-, Hear). The Minister emphasised the fact that the silver bullet was largely moulded from the money of people of large incomes. This applied to- New Zealand just as much as. to Britain.

'file Minister said he expected’ to get £585,000 altogether, including £300,000 from the special war tax. 'this was legitimate conscription of wealth and not parliamentary legalised robbery, as was. urged by some members, who tpo not realise that to take all was killing the goose that laid the golden og». They had to consider the land tax and the income tax together. There were cases where business, people in the towns were going to pay certainly 13s. in the pound. Money must he gotProvision would ho made in eases of hardship, and they were going as far as they could in reason with smnll farmers but he pointed out that in. the last month applications were received for relief amounting to £1,700,000 per annum. He did not wput to see anyone ruined by taxation, but they had get the money. Our own requirements must take precedence of everything. People had to borrow money in many instances to pav their taxation. Personally, he would come in for everything, except beer or* whisky, neither of which, lie drank nor was interested in. (Heaity' laughter.) If it was necessary to double the proposed taxation to wm the war be was prepared to do his share, and no matter who squoaled they had to get the money. (Hear, hear.) THE small shareholders. As t» entail shareholders .ispanto* ressoitabto pwwision would b*

made to meet them in the Taxation .Bill (Hear, hear.) He recognised that if some exception were not made in their favour it would be imposing a rate o ftaxation in. many instances of 7s. 6d: in the. £. They did not intend to do that, and; he thought tbo House would he content when members saw the proposals in the Bill. Answering criticism that the Department" failed to follow up evasions, Hot stated that the Department had; imposed' one penalty of £3500 for a.false-i ncome tax return. EVENING SITTING. The Housco went into committee <>n the Estimates. Discussion on the first item, Legislative Council £I2OO was. continued till 12.45. a.m. when it was passed and the House rose.