WELLINGTON TOPICS.

Hokitika Guardian, 14 August 1922, Page 4

WELLINGTON TOPICS.

LAND FOR SETTLEMENT. UNSATISFIED CIVILIANS. SI’ECIAI* TO GUARDIAN. WELLINGTON, Aug. 9. The Minister of I.a mis was not par-' ticularlv happy in his reply to Mr Milford's question in the House on Tuesday concerning the land for settlement policy of the Government. The leader of the Opposition wanted to know what steps the Minister was taking to satisfy the growing demand for land by the voung men in the country, who, through no fault of their own, had been unable to take part in the great war. There wore many lads, he said, who had grown into men since the conclusion of peace, and these men still were unable, to obtain facilities for making homes for themselves, because they had not done what it was impossible for them to do. Mr Guthrie admitted that practically all the available land bad been reserved for returned soldiers since 1010, but stated that there nowlarge areas in North Auckland and at Atiamuri open for ordinary settlement. Mr Milford protested that scarcely any land bail been settled in this way during recent years, and the Minister retorted that sections abandoned by soldiers had been occupied by civilians. The House did not seem entirely satisfied by the reply .and probably the work of settlement will be speeded tip. EAILM'AY REFORM..

Business men here are no more satisfied with the progress being made with railway reform than are those in Christchurch and Dunedin. They fear there is a disposition on the part of the authorities to use the promised business board and local agents, which were to revivify the whole service and put it in a position to compete with motor ears and lorries, as a refuge for superfluous officials and for those approaching the superannuation age. This sort of thing has been happening, in greater or smaller measure, ever since New Zealnnd was granted the privilege of self-government, hut it was hoped Mi Massey had so fully recognised the need for drastic reform in this ease tlint no makc-shilt of the kind would be permitted. The intial appointment in Dunedin, however, is creating such widespread dissatisfaction that intetested people here are taking alarm lest the appointment for the North Island should not he entirely suitable. Meanwhile the railway policy and adminis- . trillion • are showing no signs of Improvement, and the motor services, taking heart of grace, are establishing themselves more firmly than ever. A CANDID FRIEND.

That there is some ground for alarm in this connection may he judged Irnm the fact that the " Christchurch Press,” the most ardent of all the t■ n\ ■nimcut's ionrnalisti< siijqvirtors,

makes no attempt to disguise its disapproval of the Dunedin appointment “ If the facts nro as stated,” it says.

“they indicate that the Government is still bungling over the task oi instituting that root-and-branch reform of the service, and the administration that the conditions of the Dominion demand as absolutely necessary. 11 the commercial advisers are to he worth anything approaching their salaries they must he men who can talk in a business way to business men." All this is headed “A Fallacious Itel'orm,” the title, of course, not applying to the reform itself, hut to the manner in which the Government is threatening to carry it out. Many authorities here are

raising their voices ill louder pro lest, I,nt the significance of the Christchurch rebuke lies in the source from which it comes. When the ” Press ” finds mult with the Government it is safe to assume the reproach is not premature. THE PARTIES.

There is little outward indication of the efforts of the Hon. George Fowlds and Mr P. J. O’Regan to promote an “understanding" between the Liberal and Labour parties for the pur|>oso of the general election hearing any fruit, hut there are sanguine Progressives, as they like to call themselves, who profress to believe that there will lie much less vote-splitting at the polls this year than was the case in 1919. If the issue could lie reduced to a simple question of electoral reform this probably would be the ease ; hut the difficulty here is that neither in the Liberal Party nor in the Labour Party is there a majority really enthusiastic

i over this question. The two parties ! ure agreed officially on proportional representation, lmt with most of tlieii members proportional representation is merely an election cry, ns it was with the Reformers in 1011, and probably were they safely entrenched liei bind a good majority in the House they | would be loss eager than they profess 1 to be now to launch an assault upon the ' existing system of election. | TAXATION. REPORT OF ADVISORY COMM ITT EE. WELLINGTON, Aug. 11. ! The report of the Advisory Taxation Committee, laid on the table <>l the House on Wednesday afternoon, follows much on the lines of the predictions offered in these columns some weeks ago. The report begins by emphasising t|ie urgent need tor substantial vcoiio- | inics ill the administration of the af- ; fairs of the Dominion, and then goes cm to recommend that shareholders in companies should pay taxation on then divid mds and the companies only on their undivided profits: that the maxi- 1 I mum rate of income tax should not exceed five shillings in the pound ; that the losses on one year should he placed against the gains of another, within a certain time limit; that the question of double taxation should be discussed with the Imperial Government ; that all State and local body trading enterprises should Ik* subject to land and income taxes : that the super-tax on land should he discontinued as from April Ist, 1922, and that a number of minor alterations should he made in the present system of taxation. The member!' | of the committee were unaimous except i on the recommendation to change the ' method of levying the company income , tax and two questions of less importance. COMPANY TAXATION. The proposal to change the method of levying the income tax on companies was the subject of a prolonged dis-

cussion by the Committee, and it is understood there was a substantial minority of the members in favour of the retention of the present system, wluch requires the companies to pay at the same rates as do individuals with similar incomes. The change would mean that the companies would escape a large proportion of their present taxation, amounting in almost all large concerns to over 8s 9d in the pound, and that their shareholders, with incomes above the exemption, would pay at the specified graduated rate. The effect of this would be that the shareholders would receive largely enhanced individuals and would pay taxation on the amount by which their incomes exceeded the exemption. The net result, so far ns the State was concerned, would he a considerable loss of revenue

and this would have to be recovered meanwhile by the increase of the graduation on incomes which at present esape comparatively lightly STATE AND LOCAL BODY TRADING

The members of the Committee were unanimous in thinking that State and, local body trading undertakings, which come into competition with private enterprise ,should he made subject to land and income taxes. There has been quite mi extraordinary revolution in public opinion on this question during the last ton or twelve months, duo, no doubt, to the fact that the results obtained by the State and local body undertakings have been more closely examined during that period than they ever had been before. Some of them have been found sadly wanting in many respects and very few of them have brought any substantial advantage to the public or to the special communities in whose interests they were instituted. A number of the State concerns are costing the country large sums every year, and though taxation may not at once make them profitable investments, it should draw public attention to what they are doing, and ultimately lead to their reform or their extinction. Tn theory, State trading is very admirable, but. in practice it has proved much less commendable. WHAT NEXT?

What will happen to the report ill the near or the remote future is a question which only the l’rime Ministei can answer, and he for the piesent is keeping his own counsel. Meanwhile Hr Massey, in reply to an inquiry from Mr Sidey, has promised that if the debate on the Financial Statement does not provide sriffieient scope for the discussion of the Committee's recommendations “another and a proper opportunity ” to consider them will he afforded. At the same time, he said, that probably legislation dealing with the substance of the report, apart Dorn the annual taxing Bills, would lie introduced. One can only speculate as to how- much this means, hut members of tli House who approve of the general tenor ol the report, hope that the recommendations ill regard to the ieedjustment of the company income tax will he Adopted. This, however, would email a substantial increase "t the tax Upon moderate incomes, say from Coir to £2.000 or £I,OOO a year, and tin Prime Minister will require to take Ins count'"’ in both hands to move in this direction on the eve of n general election.