ADMISSION OF WEAKNESS

Sun (Auckland), Volume III, Issue 743, 16 August 1929, Page 10

ADMISSION OF WEAKNESS

SUPER-TAX ON LARGE ESTATES RUINING LAND VALUES (The SUN'S Parliamentary Reporter> PARLIAMENT BLDGS., Thurs. Holding that the Government had admitted weakness in imposing the super-tax to break up large estates, Mr. W. D. Lysnar (Gisborne) criticised the Budget today. Mr. Lysnar said there was no real cause for the extra taxation which it was proposed to charge farmers, and it such policy were put into effect it would be ruinous to the prosperity of the Dominion. He suggested that if the Government had decided that additional taxation was necessary it should have explored other avenues. It had been stated the Government desired the additional land-tax to achieve two objects—to produce revenue and to break up large estates. If the Government found it could not acquire sufficient land under the present compulsory provisions of the Act it should present to the House in a straightforward way a plan to increase its powers under the Act. If the Government wanted to destroy the value of land it should place the proposed legislation on the Statute Book. It would ruin the value of land, and it might ruin the Government, too. (Laughter.) Mr. W. E. Barnard (Napier) said that with the presentation of the Budget the House was now able to form judgment as to the proposals of the Government, and one could only hope that the Prime Minister had not displayed all his wares. The country was expecting the Prime Minister to make good all his promises, and he for one was trying to exercise patience in order to give Sir Joseph Ward a chance before issuing a writ for breach of contract. The Prime Minister had diagnosed the economic ills of the country, but had not yet offered a practical cure. Speaking of land taxation, Mr. Barnard thought the Government’s proposals would receive the general endorsement of his side of the House and of the Dominion as a whole. He suspected some members of the United Party were a little uncomfortable as a result of the decision to increase the primage duty, which possibly conflicted with promises some candidates may have given their constituents during the election.