THEIR AFFAIRS IN ORDER

Sun (Auckland), Volume III, Issue 747, 21 August 1929, Page 16

THEIR AFFAIRS IN ORDER

LANDOWNERS AND NEW TAXATION DEFENCE OFPROPOSALS '(THE SUX’B Parliamentary Reporter.) PARLIAMENT BLDGS, Tues. Replying vigorously to Mr. D. Jones (Mid-Canterbury), Mr. W. A. Bodkin (Central Otago) made a vigorous defence in the House of Representatives this evening of the Government’s land taxation proposals. He claimed that one i effect of the proposals would be to make the large landowners set their affairs in order. The member for Mid-Canterbury, | lie said, had not been seen in the j Chamber since he had received a Hansard copy of his speech. Reform Members: That is unfair. Mr. Bodkin went on to ridicule the idea that the Government’s landtaxation proposals would ruin the farmers. He quoted what he said were the figures to be relied on. those from the Commissioner of Taxes. These showed that out of dO,OOO farmers only 25,000 paid land or income-tax. The new proposals affected 2,200 only of this number, and of that number 550 only would pay land-tax as a result of the reduction in mortgage exemption. The other 1,650 would pay increased taxation. People would realise, bear j ing these facts in mind, that statements saying that the taxation pro- i posals would ruin the farming com- j li unity were utterly unreliable. ft might be possible for the Reform Party, if it made sufficient noise, backed up by the Reform Press, to stampede the farmers for a little while, but when they received heir income-tax assessment the galme would be up. It would not be long before that form came to hand for the farmers HARDSHIP CASES Mr. Bodkin went on to discuss Mr. I Jones's talk of fall in prices and the j effect this would have on the j farmers. The only cases of hard- j i-hip quoted were those of men whose ! interest figures were very big. For) the last few years these men had had difficulty in making both ends meet, and if prices fell they would surely be in queer street. Such men would be failures when the time of depression came, irrespective of the incidence of taxation. While the Government was creating the necessity for some landowners to realise the desirability of selling, it was at ihe same time creating a market for t hem. There were thousands who would be only too glad of the opportunity to buy and the State Advances Department had millions to assist those people to purchase. Was it a hardship to compel men who were vainly endeavouring to carry on a bankrupt proposition to put their house in order? It would be a God-send for those people to have their affairs straightened out, if the lands on which they were hopelessly mortgaged were acquired by the State and subdivided. Discussing the land taxation proposals in the course of his Budget speech in the House of Representatives tonight. Mr. 11. S. S. Kyle (Riccarton) said that had the United Party placed its proposals before the electors, it would not be occupying the Treasury benches at present. The Government had no mandate from the people and was in the occupancy of the Treasury benches at the dictates of the Labour Party. Mr. Kyle said that he had ascertained that 5,933 farmers would be affected by the proposed reduction in the mortgage exemption, and in his opinion hundreds of some of the country's best settlers would be driven either to the Bankruptcy Court or out of the Dominion altogether. The Hon. G. W. Forbes, Minister of Lands, had described the taxation proposed as a gentle reminder. Mr. Kyle hoped that when Mr. Forbes visited Huruuui the farmers would give him a gentle reminder. (Hear, hear.). AFFECT ON CITY Mr. Kyle next turned his attention to the Postmaster-General, the Hon. J. B. Donald, saying that he had announced that the land-tax proposals in the Budget would not affect city properties. He hoped that when Mr. Donald addressed the House he would give his reasons for that statement. Mr. Kyle criticised the Minister of Education, the Hon. H. Atmore, in regard to his announcements about education policy. The junior high schools policy was promised some time in January but now, in the middle of August, and half-way through the session, nothing had been heard of what the Minister intended to do. MORE FROM RACING Mr. R. W. Hawke (Government) said he regarded the increase in the primage duty as temporary; he would not attempt to support the increase if he thought it were to be permanent. He considered more revenue could be raised from racing clubs. Mr. U. McKeen (Wellington South) said if the Government was honest asd sincere in its endeavour to bring about closer land settlement it could rely on support from the Labour Party. He expressed the view that if the ini l ease in thd primage duty returned S 1.000.000 of revenue to the Consolidated Fund it would cost the public £2.000.000, or even £3.000,000, as a result of the increased price of goods. Mr. McKeen said it would cost only £258,000 to restore the civil service salary “cut." The Post and Telegraph Department was making very large profits and it seemed to him the time had arrived for salaries to be restored to their former level. The cost of this step would be £45,000 for railway workers, £128,000 for post and telegraph employees, and £85,000 for the general body of civil servants, making a total of £258,000. Mr. R. Semple (Wellington East) said one of the greatest problems of the day was to find employment for he unemployed apd for young people leaving school. One step toward a solution of this problem would be the development of certain industries. More labour should be employed as a result of the development of the motor-body building industry. There should be no hesitation in increasing the duty on products from the United States. ;