The Three Million Loan.

Patea Mail, 18 August 1882, Page 3

The Three Million Loan.

RAILWAYS AND LAND TAX.

An important amendment to the Loan Bill has been discussed in the House, but not finally disposed of. In committee, Major Atkinson moved a new danse limiting the borrowing to one million a year. This was agreed to. An amendment to limit the borrowing to within the colony was negatived. An important debate arose on the following proposal from the Opposition side for taxing land to make up for deficient railway revenue : Mr Sbrimski moved, as a new danse, “.When any railway or portion of a railgay made under the provision of.this Act shall be opened for traffic, if the net returns from such railway or portions of a railway, after deducting working expenses and all costs of repairs of permanent way, rolling stock, and plant, be not sufficient to pay the interest upon the money expended in making such railway or portion of a railway, then the Governor in Council shall raise an amount sufficient to pay such interest by imposing and levying a tax in such manner and at such differential rates ns the Governor in Council shall deem fit, upon all lands within fifteen miles of either side of such railway or portion of railway.”

The chairman ruled that the motion could not be received. It was of a taxing nature, and tbe mover could move the re' committal of the Bill in order that the clause might be added. Sir George Grey' said the entire Bill was a taxing Bill, and as such the clause ought to be received.

The Speaker was then consulted by tbe chairman, and said tbe clause was in order. It was therefore moved and discussed.

Major Atkinson opposed tbe clause. Such a proposition in the Bill would ruin tbe general credit of the colony’, and entirely defeat tbe whole intention of the Bill. The proposal was utterly impracticable.

Mr J. E. Brown supported, and Mr Kelly opposed the clause. Sir George Grey warmly supported the clause as a most valuable and opportune proposal. It would raise instead of injure the credit of the colon}’. All land which benefitted by public works expenditure, whether on railways, roads, or bridges, should be taxed. Messrs Fish and Steward supported the clause. Mr Macandrcw thought this the most hopeful proposal made for years. The tax, however, should be on provincial districts, as originally proposed. Mr Pyke asked why town property should not also be taxed. Mr Moss approved of the principle, but thought the clause out of place in the Loan Bill. Sir John Hall thought the matter too important to bo hastily dealt with, and suggested the propriety of reporting progress. Mr Montgomery approved of the suggestion, and Major Atkinson concurred and moved to report progress. Mr Seddon strongly opposed this, and said the proposal was really land tax in disguise. Sir George Grey hoped the matter would be dealt with on its merits, Aot as a party question. It was most important. The motion to report progress was carried by 53 to 21, and leave given to sit again. Railways to be Made. Some discussion arose in committee on the mode of allotting the loan between districts. Mr Montgomery thought it was only fair that they should be informed of the works upon which the first million was to be expended. Mr Johnston said a section from Blenheim South would be provided for. Government recognised that it was a necessary work, whether it became part of the main trunk line or not. Another section from the Canterbury side will also be made. No new works would ,bo undertaken. The money would be strictly appropriated to the extension of works already commenced, and which arc now in an incomplete state. Major Atkinson said the policy of borrowing this money was fully recognised by the House. He would therefore ask them to pass the clause, and take up the question on the consideration of the schedule. This was agreed to on division. In May, 1881, there were 11,868,845 sheep in this colony.