FINAL BATTLE ON TAX BILLS

Sun (Auckland), Volume I, Issue 146, 10 September 1927, Page 5

FINAL BATTLE ON TAX BILLS

MEASURES PASSED BY HOUSE MINISTER’S DEFENCE: TARIFF CHANGES (THE SUX’S Parliamentary Reporter.) WELLINGTON, Friday. JfUST as Rome was not built in a day, so does it require more than one sitting day of Parliament to alter the graduation of the country's taxation schedule. Once again the members of the House of Representatives engaged in a spirited debate on the Government's Land and Income Tax proposals, and traversed much of the ground which has been covered many times during the past week. The Prime Minister denied that the country had been promised reduced taxation, although he promised whatever relief that could be given in this direction next year. Both bills passed the third reading.

r |MIE Minister of Finance, the Hon. W. Downie Stewart, described it as the irony of politics that he, a staunch advocate of low taxation, should have been made the object of the storm of protest against the taxation proposals, but . he, in his political innocence, had thought that no accusation could be laid at the door of a Minister who regraded the schedule of taxation, and incidentally secured additional revenue from the operation, when this was but part of the general proposals. He was not prepared to lay before the House the whole proposals, however. Members had displayed great apprehension in the promise of concessions on the tariff, but he assured them that they very shortly would have an apportunity of judging that for themselves. Mr. J. A. Lee: What about the statement of the Minister of - Education, who said the money was required for schools? Mr. Stewart: Well, he no doubt! would be eager to take every opportunity of forwarding his programme of works. Mr. P. Fraser: Then he will object to a reduction of taxation? (Laughter.) Mr. Stewart: Well, he will doubtless take a broad view of the position when it is put to him. (Renewed Labour laughter.) The Minister went on to say that many unwarranted stories had been circulated in the city throwing an entirely wrong complexion on the proposals. Clerks on less than £3OO a year had been informed that they , would be affected by this Bill, while insurance agents had been making capital of it by inducing people to increase their life insurance policies on the pretext of securing exemptions from income tax. Everyone was satisfied when the position was explained to them that the -adjustment was fair. Mr. Fraser (sarcastically): In fact, they welcome it, I suppose. Mr. Stewart: I do not say that, but they have sufficient sense of justice to see when this is warranted, and fair : enough minds to see that the regrading is fair. NO PROMISE GIVEN Mr. Coates said that no definite promise was ever made by the Government that taxation would be reduced, but he wanted to say now that the Government hoped to be able to reduce it substantially. One could not take exception to any capital that the Opposition might choose to make out of a position which, on the face of it, appeared somewhat difficult at the moment. They mu li place the burden in a manner fair ana equitable to everybody. MAKING FOR REDUCTION “It is reduction we are making for, and it is reduction we will get,” Mr. Coates went on, “and we hope to be able to apply it in the not distant future.” Mr. Coates said that a great deal of the Press criticism throughout the country had been unfair, and some of the big newspaper editors had adopted an entirely wrong attitude. He asked the people to be patient and careful of the future. He believed the country was about to face a good year, as there was a decided upward tendency at the present time, but even a record year would have no effect upon the tax to be received. Next year it was hoped that something would be done. There were those, however, who would simply love to see this country faced with a deficit. Mr. G. W. Forbes and Mr. T. MeCombs together: Who are these people? Mr. Coates; Now, has any consideration been shown in this House for the

future? It has been totally disregarded. It must be known that incomes this year will be affected by the past two years’ conditions. Mr. H. E. Holland: But the Minister says he does not want revenue. Mr. Coates: It is true that this is designed not for revenue, but merely a step toward ultimate equitable adjustment. Customs duties would be greatly affected by the tariff proposals and imports would drop considerably, which, of course, was a good thing. This would adjust itself. FROTH BLOW ERS' CHORUS Mr. F. Fraser became curious as to whom Mr. Coates had meant when he said people desired to see a deficit. Working it out upon the speeches, Mr. Fraser could lay a finger on one man only, the member for Hawke’s Bay, Mr. H. M. Campbell, who had suggested that a small deficit would have been better in the circumstances tlufn a large credit. Mr. Fraser suggested that Mr. Coates should apologise to Mr. Campbell. (Laughter.) Mr. Fraser asserted that Mr. Stewart, instead of taking the House into his confidence, had put the confidence trick over on the House, saying to them: “Trust me, believe in me, take my 1.0. U., and then, like Micawber, wait for something to turn up.” There has never been such a chorus of disharmony in this house as there has been during the past two days’ debates. Members of the Government give all sorts of reasons, like a new Crothblowers’ chorus, “The more they are together the unhappier they’ll be.” Last night Mr. Wright stalked into the contest in full armour, brandishing a weapon—l won’t say it was a threat—and tramped roughshod right through Mr. Downie Stewart’s statement that no more revenue is wanted, by telling us that we cannot get more schools without more revenue.

OLD ARGUMENTS TRAVERSED The Land and Income Tax Annual Bill was passed about 10 o’clock and the House went on to discuss the Land

nd Income Tax Amendment FIT!, nany of the old arguments being reived and used again. This measure ras passed at 11.45 and the House proreeded to discuss the estimates. The igriculture vote of .£ 3<>o,oSt>. and the drestry vote of C?3t>.351 were passed. The division list on the amendment, a ken while the House was in commit;ee, which Mr. H. E. Holland said he vould regard as a test, was as folows: —• NOES (42N Anderson Link later Bell Luke Bitchener Lysnar Burnett McLennan Campbell McLeod Coates Man iilian Dickie Mason, J. Dickson. .A S. Nash n. J. .Mr,;. Nosworthy Field Reed < uriing Rhodes Hamilton, J. R. Rolleston. V. .1. Hawken Rolleston, J. C. Henarc Stewart Holland. H. Sykes Hudson Waite Hunter Walter Jones. D. Williams K vie Wright Lee. E. P. Young

AYES {2O). At more McCombs Buddo McKeen Forbes Mason. H. G. K tYiiser I’axrv Harris Ransom Holland. H H Sa.ape Horn Sullivan Howard Ye itch Jordan Ward Lee. J. A. AVilford Fairs.—For the Bill, Potter. A. Haniln agralnst the Bill. Side>, Forsyh.