PARLIAMENT.

Manawatu Herald, Volume III, 18 June 1891, Page 2

PARLIAMENT.

HOUSE O"F IIEP'reSeNT'ATIVESTUESDAY, JUNE 16. The House met at 2.30 pita". . A tiiimber of liew bills were introduced and read the first time.

. . THE ELECTORAL BJLL. Tlie Premier, iii niovirig the second reading of the Electoral Bill, spoke of the principle of " one man one vote," and said that in municipal elections in England that principle had been admitted. The Government also proposed a general holiday fdr" electors oil election day, which Would leave every man free to exer-' else his vote, without being under an obligation to his master, or putting himself td irlcoij veriietice. Iri order IS. purge the electoral roll, all who did not vote at a general election should be struck off, although they could register again, so it would be I no hardship. A debate ensued which was interrupted by the 5.30 adjournment. On the House resuming at 7.30 the Hon. 'the Premier made his FINANCIAL STATEMENT. The estimated expenditure for the year 1890-91, including the Civil list and other permanent charges, amounted to £4,125.502. Tlie. actual expenditure was £4,175,103. The late Government; estimated the revenue to be received at £4,159,---000, which included £55,000 for primage duty for the whole year. The revised revenue to be received was accordingly £4,131,500, instead of £4,159,000 as before stated. The actual amount received was £4,282, - --504 or £151,004 in excess of the revised estimate. The gross public debt on the 3lst March, 1890, was £38,667,950*. and the sinking funds accrued amounted to £1,386,186 (as revised after receipt of the English accounts) ; the net public debt was therefore £87,---281,764. PUBLIC WOBKS FUND. Taking the three parts together* ; the available balance at the beginning of the year was £1,047,465 16s 2d, which was increased to £1,053,248 0s lOd by some small receipts. OBDINARY REVENUE OF THE YEAR. ' After careful consideration I estimate our ordinary revenue receipts will amount to £3,986,500 or £8,004 less than the actual receipts of last year. In addition to the above there will be issued in aid of revenue £282,300 for sinking.fund increases, as against £288,000 issued during the past year. Adding these together our total receipts are estimated to fall short of last year's actual receipts by the sum of £13,704. FINANCIAL ARRANGEMENTS. We believe the time has come when the penny post should be established in New Zealand. The loss is estimated at not more than £40,000 and it is calculated that within three years the loss will be covered. We propose, in the present year to apply the sum of £30,000 out of revenue for the work of opening up land for settlement. This amount will probably have to be supplemented by a vote from the Public Works Fund. We propose to remit the Native lands duty on leases, amounting on the average to about £6000 a year. The Land Department has made a calculation of the sum it will cost in surveys and administration to obtain the territorial revenue in the present year, and the estimate is £40,000. There is an estimated deficit in the present year in. the land fund, through* the probable : decline in cash sales, of £21,820," which I propose to meet by transferring a similar amount from the Ordinary Revenue Account, which will come out of the j estimated surplus." 1 . We propose to place a tax of 2J per cent, on the money passing through the totalisator, which will, amount to about £10,000 a year and for the remainder, of the present year to about £5000. . land. The time, it is believed,,, has arrived when suitable areas will have to be purchased 'by the Crown for small farm settlement. In many parts of the Colony the Crown lands available for this purpose have already disappeared, and if the population is to be retained the wants of intending settlers will have to be met. A Bill will be introduced, hedged round with the necessary safeguards to establish a satisfactory system of purchase. TAXATION. We propose to introduce a Bill to abolish the property tax, and to provide for a land and income tax, and in respect of the land tax, to grant an exemption on improvements up to the value of S 3~,000 for each owner, and also to impose a graduated tax upon all persons and companies the value of whose land, less the £3,000 of improvements, shall amount to £5000. It is estimated that the deduction of improvements will cause a loss of revenue of about £60,000,1 and the graduated tax will bring in an increased revenue of £61,899. In addition the deduction for improvements there will bo the exemption of £500 from an owner's land ; and it is not proposed to grant the exempsion when an owner's land, less deductions he mayjclaim, will exceed £1600. Thus if a farmer has

land worth £800, the improvements on which are valued at £800, the exemption would make him riot taxable ; and with land worth £1300, and improvements £400, the taxable balance would be £300. We believe the property tax to be grossly unjust in its operation, imposing without discrimination burdens on capital, whether productive or unproductive, and discouraging industry. For this obnoxious form of taxation we intend to substitute an income tax of a shilling in the pound. There wi'-l be an exemption of £150, and a deduction by way of abatement of a like amount from incomes which do not exceed £600. I have now to bring together the estimates of land and income tax, of the amounts receivable under the different schedules of the Bill Land tax, including land and mortgages, under Schedule A, £266,847. Income tax under Schedule B, including banks, life insurance, goldmining, fire and marine insurance, and other companies (omitting profits from land and mortgages), and companies' debentures other than mortgage debentures, £47,300. Income tax under Schedule C, from trade j and commerce, £40,000. Income tax under Schedule D, professions and salaries, £15,000. These amounts added together give a grand total of £369,147. The conclusion of the statement was received with loud applause. . Progress was reported and then the House adjourned.