DRAMATIC TURN IN DEBATE

Sun (Auckland), Volume III, Issue 748, 22 August 1929, Page 11

DRAMATIC TURN IN DEBATE

Reform’s ChsJlenge to Budget PRIME MINISTER’S COUNTER No-Confidence Issue Raised (THE SUN’S Parliamentary Reporter) PARLIAMENT BLDGS., Wednesday. rIE drama of politics once more pervaded tlie air of the House,of Representatives tonight, when that longthreatened amendment of the Rt. lion. J. G. Coates’s was sprung on the Government and acted like a cold douche to the comfortable security of the men on the Treasury benches. At tlie end of his long Budget speech Mr. Coates moved an amendment which lie was careful to explain was not to get Labour to vote with Reform. If was to record a protest against the taxation proposals contained in the Budget. The Prime Minister, Sir Joseph Ward, however, chose to take it as a vote of want of confidence, and accordingly refused to sit out the debate while such an amendment was in the air. He accordingly moved an adjournment of the House, after suggesting that the debate should be adjourned. It may be that things are coming to a political head. The House adjourned at 9.45.

Certainly on the mention of Mr. Coates’s amendment the party Whips started to get busy, but the division did not take place. At the end of his speech. Mr. Coates moved the following amendment to the motion that the House go into committee of supply on the Budget. In the opinion of this House the taxation proposals are not acceptable without further revision and on the grounds that (1) The increased primage duty will increase the cost of living, and if further Customs revenue is absolutely required the duty should be imposed on certain selected luxuries of foreign origin. (2) That the proposed increase in land-tax amounts, in some cases to a confiscatory single-tax absorbing the whole annual income of the property without regard to whether such nroperty is capable of subdivision or not. Moreover the reduction in the mortgage exemption will impose a grave hardship on many farmers. (3) at if any change is to be made in the taxation on that class of farmers contemplated by the Budget it should be based on the principle of capacity to pay, viz., income tax with adequate provisions for preventing aggregation. (4) Experience has shown that a proper classification of lands suitable lor subdivision is essential before penal taxation is imposed. (5) That the proposals as to highway revenue are a breach of faith with the motorists of New Zealand, who agreed to the imposition of special taxation on the condition that no part of this taxation was to be available for the general purposes of the Consolidated Fund. RECORD OF PROTEST Mr. Coates said that the amendment was moved as a record of protest against the proposals of the Government in regard to taxation. “I have noticed,” he said, “that certain newspapers in New Zealand have suggested that the amendment, when given notice of, wa.s a cute move on the part of the Leader of the Opposition to try to inveigle the Labour Party into voting with Reform. That is not our concern at all. The Labour Party, I think, will vote with the Government. Jt may happen that later on the Reform Party and the Labour Party may be bound to vote against the Government. The present is not a move to try to secure the support of the Labour Party.” He maintained that the proposal to double the primage duty was unjustified. It would add to the cost of living and would be passed on. He opposed the land-taxation proposals on the ground that the system proposed would create a lot of hardship, and that the rest of the country would feel the reflex of depreciated values that must automatically follow the impost. “The method we suggest,” he said, “is that a proper classification be made of all lands suitable for settlement. As far as the so-called ‘wool kings’ are concerned, if it is necessary to tax them more, then, bring in income tax.” Sir Joseph Ward then intimated, amid a hush, that he wished to make a statement. SIR JOSEPH’S DECISION “Th© amendment moved by the Leader of the Opposition,” he said, “can only be accepted by me, on behalf of the Government, in one way, as a vote of want of confidence. That is the decision 1 have arrived at, and that is the attitude I will take up until the motion is disposed of. I have not had an opportunity of replying to the speech of the right honourable gentleman at this stage, but I can say this, that for misrepresentation on material points the speech Mr. Speaker here told Sir Joseph Ward that he should reserve his comment until he spoke. Later the Prime Minister said that he would withhold observations until the motion was disposed cf. The Leader of the Opposition knew at the caucus that afternoon that the motion would be accepted as one of want of confidence. Mr. Coates: AIL right. The Prime Minister: You understand the position and so do 1, and I hope every member of the House does. A Labour Member: Don’t look this way. (Daughter.) “It remains for me,” said Sir Joseph, “to move an adjournment of the House if someone will move an adjournment of the debate.” •V oices: YV'hy ? Mr. Coates rose to a point of order, asking the Prime Minister the reason for an adjournment. Sir Joseph Ward: Certainly I assumed the debate would be resumed, but in the meantime the Government is not going to sit here with a vote of want of confidence impending, and allow the debate to go on until we have a decision upon the motion. As far as I am concerned I wish that someone would move an adjournment of the debate and I will move an adjournment of the Plouse.” Mr. C. A. Wilkinson moved an adjournment of the debate, and Sir Joseph Ward an adjournment of the

House. Members did not immediately leave their seats, but remained clustered in talking groups. “Are the days of 1912 to be revived?” is the question being asked. SPECULATION RIFE HOW WILL LABOUR VOTE? PARTIES HOLD CAUCUSES (THE SUN'S Parliamentary Reporter) PARLIAMENT BLDGS., Today. Following on the Rt. Hon. J. G. Coates's surprise amendment of last evening, there is plenty of speculation in the lobbies today as to what course things will now take, and whether the debate will be lengthened by any discussion on the amendment. Sir Joseph Ward will be the first speaker this afternoon, and all other business will be at a standstill. He will reply to Mr. Coates and carry on the war. People are w'ondering how Labour will vote when it comes to the time of the ringing of the division bells. On the whole it is thought that Mr. Holland and his party will vote with the Government, for, although they may be in agreement with the first part of the amendment regarding the primage duty, of necessity they must disagree with the second clause concerning the objection to the increase in the land-tax, characterised by Mr. Coates as a “confiscatory single-tax.” Both the Government and the Labour Parties held caucuses this morning, but there was nothing to report from these. Mr. H. E. Holland w'ill speak this afternoon. Sir Joseph Ward cancelled several deputations which were to have approached him this morning. Under the Standing Orders an interesting position now arises as to whether the debate will be drawn out longer. Those speakers who have already had a say in the Budget debate may speak again to the amendment and take up hours again, but those who have not yet spoken will be entitled to their hour. But, instead of confining themselves to the amendment, they may speak on the w'hole Budget and the amendment as well.

Interviewed this morning as to the proposals of the Reform Party, Mr. Coates said he did not think the amendment should make much difference to the length of the debate. It all depended upon Mr. Speaker’s ruling as to whether the amendment was a separate question or could be included in the debate. In the event of Sir Joseph Ward speaking first, he said that the party had plenty of speakers to put up.

(Frohi Yesterday’s Late Edition.)