NO-CONFIDENCE AMENDMENT.

Manawatu Herald, Volume L, Issue 3987, 22 August 1929, Page 2

NO-CONFIDENCE AMENDMENT.

MOVED BY LEADER OF OPPOSITION.

The Leader of the Opposition (Rt. Hon. J. G. Coates) dropped a bombshell in the House of Representatives last night when he moved, as a protest against the primage, land taxation, and highways revenue proposals, an amendment to the Budget, which the Prime Minister (Rt. Hon. Sir Joseph Ward) promptly accepted as a want-of-confidenee motion in the Administration. The point was emphasised by Mr. .'Coates that the move was not one to compel the support of the Labour Party, who, lie predicted, would vote on the division with the Government. The House adjourned immediately. Mr. Coates led up to the moving of the amendment by criticising the taxation proposals of the Government. So keenly did he feel on the matter, he said, that he proposed to move the following motion :

In the opinion of this House the taxation proposals are not acceptable without farther revision and amendment on the grounds that:

1. The increased primage duty will increase the cost of living, and if further Customs revenue is absolutely required the duty should be imposed on certain selected luxuries of foreign origin.

2. That the proposed increase in land tax amounts in some cases to a confiscatory single tax absorbing the whole annual income of the property without regard to whether such property is capable of subdivision or not. Moreover, the reduction in the mortgage exemption will impose grave hardship on many farmers.

3. That if any change is to be made in the taxation on that class of farmers contemplated by the Budget it should be based on the principle of capacity to pay, viz., income tax with adequate provisions for preventing aggregation. 4. Experience has shown that a proper classification of lands suitable for subdivision is essential before penal taxation is imposed. 5. That the proposals as to highway revenue are a breach of faith with the motorists of New Zealand, who agreed to the imposition of special taxation on the condition that no part of this taxation was to be available for the general purposes of the Consolidated Fund”.

REASONS FOR AMENDMENT

“The amendment is moved as a protest against the proposals of the Government in regard to taxation,” said Mr Coates. “I have noticed that certain newspapers in New Zealand have suggested that the amendment when given notice of was a cute move on the part of the Leader of the Opposition to try to inveigle the Labour Party into voting with the Reform Party. That is not our concern at all. The Labour'Party, I think, will vote with the Government. It may happen that later on the Reform Party and the Labour Party may be bound to vote against the Government. The present is not a move to try to secure the support of the Labour Party. I sqy again that the proposal to double the primage duty is ■not justified. It will add to the cost of living. It will be passed on. I oppose the land taxation proposals on the ground that the system proposed would create no end of hardship and that the rest of the country would feel the reflex of the depreciated values that must automatically follow the impositions. “The method we suggest is that a pamper classification be made of all the lands suitable for settlement. As far as the so-called wool kings are concerned, well, if it is nepessary to tax them more, then bring in the income tax.”

PRIME MINISTER'S STAND. When Ah Coates sat down the Prime Minister rose to speak: “The amendment moved by the Leader of the Opposition can only be accepted in one way- —a vote of want of confidence. I wish to announce that that is the decision I have arrived at, and that is the attitude i null take up until the motion is disposed of. The adjournment of the debate was moved by Air C. A. Wilkinson, Independent member for Egmont, and the adjournment of the House was then moved by the Prime Minister.