PARLIAMENT.

Stratford Evening Post, Volume XXX, Issue 87, 15 July 1916, Page 2

PARLIAMENT.

HOUSE OF REPRESENTATIVES.

THE FINANCE BILL

(Per Press Association). Wellington, July 14

The House met at 2.30 p.m

Sir Joseph Ward moved the third .reading of the Finance Bill. He [thanked members for the treatment [accorded to what was a difficult Bill. [Ho read a statement of the finances of the country for the quarter ended June 30 last, showing an increase, in all departments but five, which amounted to £313,459, as compared with the corresponding period of last year. Among the increases was rail- . ways from £952,000 to £1,006,000. There was a decrease on the expenditure for the three months of £7446. Ho said the figures were very satisfactory, and pointed to a considerable balance on the right side. With the £2,600,000 invested in London, and i the now taxation, he looked to having [ on hand for war purposes at the end of the year six and a half millions. He hoped that what was being done by j the Government to meet the altered circumstances created by the war j would he appreciated by members and the country. He quoted statistics of the wealth of the Dominion showing | that New Zealand was one of the safest countries in the world in which to invest. Referring to the proposal to issue debentures for land purchased for soldiers, he justified that course, on the ground that it was necessary to provide for local requirements. The war loan would be raised free from income tax up to 44 per cent. He impressed upon members the importance of the Government doing nothing which would prove an incentive to capitalists to raise the rates of interest, and pointed out that the issue ol £5 bonds had not been successful, which he attributed to the fact that the people would not lock up money for fifteen years at 4J per cent.

Mr Wilford objoctocl to some of the statements in Sir Joseph Ward’s address. He said that if wealthy men would not subscribe to their loan at o per cent, he would take their money. He contended that our system of taxation was not based upon any scientific principle. It seemed to him that oiir taxation was all in favor of the rich man.

Mr Wilkinson (Egmont), favored an increase in the graduated tax so as to assist in bursting up large estates, thereby obtaining land for settlement which could not, owing to high prices, be secured at present.

Mr Craigie personally approved of the Bill. Ho hoped after the war that a complete system of taxation would be proposed.

Dr Newman said that the way the Finance Minister had handled the Bill had been most pifPticularly approved of the reduction ol the tax on smaller incomes from one shilling to sixpence. He thought any regulations to prevent the export of capital would be dodged. Mr Young said that as the Government had power to take land for soldiers on debentures, on which they paid 5 per cent., the natural corollary, in his opinion, was that a similar course should apply to money. Messrs Walker and Payne continued the debate till the dinner adjournment. EVENING SITTING. On resuming at 7.30, Mr Payne urged the Government to make use oi the twenty millions of depositors’ money, lying in the banks, instead oi borrowing money at high rates of interest and paying heavy charges in London. Mr McCombs criticised the Government for declining to take steps to reduce the cost of living. Mr Pearce said the cost of living in Australia, under the Labor Government, was greater than in New Zealand.

Mr Webb took exception to the Bill because the large landowners were not called upon to pay their fair share of taxation.

Mr Isitt protested against tin; wearisome reiteration of arrant nonsense.

Mr W. J. J ennings (Taumanmui) drew attention to the high cost of living so far as settlers in outlying districts were concerned. Mr Hindmarsh appealed to the House to deal earnestly with the tent question.

Sir Joseph Ward, replying, said i h e effect of the repeal of mortgage tax would be to help the struggling mortgagor. He pointed out that the Government were not dealing with party policy measures, and that was why groups of professed Labor members failed to appreciate the true position. The all-important work was to obtain the money required. He ridiculed the statement that a large sum could be secured by reducing the exemptions from income tax to £lo(). Ho moved the third reading, which was agreed to on the voices.

The House rose at II p.m. until 7.J0 p.m. on Tuesday.