WELLINGTON NOTES,

Hokitika Guardian, 21 August 1923, Page 1

WELLINGTON NOTES,

TAXATION'. exemption of aoricul;it:isal LAX I). CSpecial to ‘Guardian”.) WELLINGTON', August 18. It would be easy to over-estimate the significance of the division in the House of Representatives on 'Wednesday mottling, after an all-night sitting, when the Government carried its proposal for the exemption of agricultural land from the operation of the income tax by one vote. There can be. however, no disguising the fact that the Prime Minister lias a very difficult task in leading a House in which his pledged friends and his pledged opponents are so evenly balanced that the scale may tip either way in any crucial division. On this particular occasion he was saved from defeat by Mr .Murdoch, the member for Marsdcn, crossing the floor of the House to vote with the Reformers. Of course, had the scale tipicd the other way, the result of the division would not have necessitated the resignation of the Government. but in view of his promise to relieve the farmers of the incometax imposed upon them as a war measure it would have placed Mr Massey in an extremely embarrassing position and gravely impaired the prestige of the Ministry. ‘•I.KTTING them OUT.”

Referring to the exemption of farmers from income tax the ‘‘New Zealand Times” denounces in its old-time style the relief given to “the plutocratic .sheep-farmers of New Zealand.” “This unwarrantable concession to one already favoured and privileged class,” it says, “is calculated to create strong indignation and condemnation throughout the country. If there was one class more than another that benefited by our success in the war, at the enormous sacrifice' of blood and treasure, it was that represented by the sheep farmers who are tlie land monopolists cf the country. They were protected in the continued possession of their great territorial estates which yield them immense revenues. This was a-liievod only a! the cod ol the lives of many thousands of our most promising young men and the health and prospects in life of many thousands of oilers. And now . . the opulent sheep farmers . . . are allowed to naval out of their income tax liability at the expense of the rest of the inhabitants of New Zealand. It is intolerable.” This vigorous language relic t- much of that used in the House. OTHER CRITICISM. Tile “Dominion” docs not harry the Prime Minister upon the results ot his week's woik. Its Line, indeed, is generally appreciative though perhaps not so effusive as ii might have been two or tlnee years ago. The “Post . In.-wever, i- not quite sure that the increase in the debenture tax is a wise move*. “Public bodies, it says, must have- a stable linancial system. and short-term loans, with constant renewals. are not generally suitable for them. How will the new debenture (ax affec t t heir finances ? Will it not weight the balance against them? If they borrow now they will bo compelled to oiler a higher rate of interest, and they must pay that rate for ten. fifteen, or twenty years. Higher taxation makes higher inioiesf necessary. In course ol time taxation will be reduced, but the lender will p,..|\t thereby. The borrowing public body (and its ratepayers') will continue saddle! with the higher interest, originally imposed to compensate for high taxation.” The debenture tax still will let off local hollies more lightly than companies ami individuals are let oil and so ,lnr leaves no cruise for complaint. DAIRY PRODUCE CONTROL.

It is expected that the Dairy Produce Export Control T>i 11 will make its appearance in tin* lloii-e early next week, and meanwhile ike parties to the controversy going on in Die newspapers over the measure are exchanging tbeir tim'd shots. ‘•■Mercantile houses.” a correspondem writes in the ‘Times” this morning. replying to Mr Ground's attack on “vested interests”.

•‘are opposed to Government interferbecause they know the dancers jikcad. Governments change and the changes are mu. always lor the national benefit of 1 lie public. Although the dairy industry has unde great procress, no one contends that its management lias rent hH the stage of perfection. There is room for further improvement, .but tbis can be actiieied o> voluntary effort, ami reasonable onoperation. Business people do not desire to see Syndicalism established ill this i-ounti v by Art of Parliament. The Dairy Control Bill is pare Syndicalism and that is worse than Socialism. Wo have now got meat control, il tin* Dairy Control Bill is passed we will mivo butter and cheese control, mid d a Labour Government gets into power it would be fully justified in passing a “job Control Bill.” And so the eontroversy wages on.