House of Representatives.

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8938, 2 October 1907, Page 3

House of Representatives.

The House met at I.SO. Notice was given by Mr Barclay to Introduce the Public Service Reform Bill tith tho object of repealing tbo regulations which prevent public servants tikirig part in politics. The House went inta Committee on the Land and Income Assessment Bill Ve Premier Etated that ho had looked into the point raised by Mr Hanan that iwe was a conflict between clauses 15 n( l if. and was advised that the clauses autlvev stood were qnito right, though there imght be some overlapp ng. Eefrrring to the conditions necessitating 15 Z* cent, of tbo purchase money being Lid before tho seller was relieved of his liability to pay the graduated tax, the I'remior said he would move a proviso to Jl»u=e 16 enabling the Commissioner of >rws to enquire into the bona fides of A e 'purchases where less than 15 per cent. „« paid, so that if he was satisfied that the purchase was bona fide and not an .ttoinpt to evado tha tax, ho could grant Mcraption. This, ho added, would grant " opportunity to a poor man desiring in t'ike up land' and would meet cases of wchhip which might exist. He urged tl'at tho proviso should .take away all obiection to tho clause. jlr ]/.nrd suggested that the clauso should not be retrospective. The Premier said ho was not prepared to limit the operations of the clause to transactions during the past iivo years. H r Herries said that all a man need do to evado tho tax was to cut up bis estate Mion" his relatives/and produce a receipt fir 15°per cent, of tbo purchase money. Rv this means ho would defeat the object of tbo Government in desiring to get settlers on the land Mr Alison isaid tho Premier had not riven any effective reasons why the clause sh«uld bo retrospective at all. lie instanced the case of a man who pu.r- ---| 'w e d land from the Assets Board, and

tad "old tho samoin sections to industries working men on the payment of £5 *' no deposit. By this means more ,Vporfo had boon settled on tho land than f, /Government had s « ttl( : rt °* * h ° whole of tho lands iu the Auckland n-ovinee. Iu no case had any of tho o'archasoTS of these sections paid Lie than £25. Under tins clause, hi added, tho original purchaser Lin tho Assets Board would, for the nrposcs of this Bill, he regarded as L owner of the lands, and world accordingly have "to :pay graduated bud tax. . , , -u The Premier reminded, members that i ,0 8,000 had been lost to revenue durin" a short period. Ho reiterated the statement that tho'proviso to tne clause would amply protect the bona iide seller. Mr James Allen contended that tho clan=o was against the transfer of the land. Ho added that previous transfers were mado under the existing law, and -yet under this clause many would be compelled to pay the I graduated tax without any possi-j baity of evading it. Ho argued that tho operations of the clause iu regard j o transfers that had already been ! nado was distinctly unfair, and tided that tho clause:would not tend o bring about the objects desired by he Premier in the Bill. Mr T. MacKenzie said the intenioa of the clause was to defeat lummy divisions of laud, and he intended to support the clause with ;ts proviso. Mr Field said it would be a wiso lonrse to allow of appeals to a SnIrome Court Judge. The" Premier expressed his nihility to nccapt the suggestion, as ; was tho intention of the Bill to void litigation. >,jr Bndtlo said the question Oi sale viis'a difficult one. He argued .that here was really no transfer withoutoccupation. Mr Rutherford could sec no reason for the clause, and if it was struck ant altogether there were sufficient slaases in tho Bill to moot its obMr Alien moved an amendment to Hie clause to confine operations to transactions taking place after the ■passing of tho Act. WOn resuming at 7.30 p.m., the llouso, Kn committee, further considered the ■Land and Income Assessment Act. JA motion to limit the operation of tho ■Act to commence as from the date of Eta passing of the Act was rejected by II to 13. A proviso was agreed to providing that the Commissioner of Taxes be empowered .0 accept, a 3 apart from the provisions of tie Bill, cases in which a sale had been aafe on a basis of less than 15 per cent, rfcero the Commissioner of Taxes is atisfied that they constitute an evasion it the graduated land tax Tho Bill was reported with amendDents.

Tha Murine Insurance Bill from tho Council was read a first time and tho iouso adjourned at 12.20 a.m.