PARLIAMENT.

Taranaki Daily News, Volume LII, Issue 227, 30 October 1909, Page 5

PARLIAMENT.

LEGISLATIVE COUNCIL : FRIDAY, OCTOBER 20. Uy Telegraph.—Press Association# Wellington, Last Night. The Council met at 2.30. Don. Sinclair moved that tne question of the erection of a suitable memorial to the memory of the late Euward Gibbon Wakefield be taken into cureideration by the Government In sunport of the motion, the mover dwelt at,' some length on the great pioneering services rendered New Zealand oy Wakefield. , , , Hon. K • MacDonaid: seconded the motion. . , Hone. Kelly, Loughnan and -McGowan spoke in eulogy of Wakefield. The Attorney-General, in a neat speech said something ought to bo done to perpetuate his memory, and the Government would take the matter into consideration ag asked. The mction •was carried. The Land Tax and Income Tax Bill irom the House passed all its stages. The council adjourned until Wednesday

HOUSE OF REPRESENTATIVES ' LAND AND INCOME TAX BILL. In the House this-afternoon, the Pre jnier moved the second reading of the liind and Income Tax Bill, wnich was similar to the usual Bill, with the excep. tion of 25 per cent, addition to tne Graduated Land Tax. Mr. Massey, while supporting the second reading, urged the abolition of the mortgage tax, which was prejudicial to the borrower. The amount could be collected as income tax. Mr. Baume advocated a progressive income tax in order to prevent the excessive accumulation of private wealth. Mr. Herries wished to know what the Premier estimated would be the amount produced by the imposition of 25 per cent, graduated land tax. The Premier, replying to Mr. Baume, said there would be an opportunity to go into the whole matter later in the atesion. Regarding the mortgage tax, if this were removed as suggested, they would get no graduated land tax out of the land at all. Land owners, in order to evade the tax, would only have to get a mortgage on their land. He could not agree to Mr. Massey's proposal. Replying to Mr. Herries, the Premier said he estimated the amount provided by the graduated laud tax at £25,000 per annum. The second reading was agreed to and the bill was committed and reported unamended on the third reading. Mr. Massey said the Minister for Finance was confounding the mortgage tax with the graduated tax. A man paying tie mortgage tax was a lender who in turn transferred it to the borrower. It was a very unfair position for the borrower. He suggested that the question be referred to the Public Accounts Committee with whose decision he ' would be content.

Mr. Taylor urged that men with ' families should have a concession in regard to the income tax and customs. A! present they were heavily taxed for doing their duty. The Premier, replying, said he iad"iiered to his statement that if the mortgage tax were abolished land holders could evade the graduated tax. All the landholder required to do would be to divide his estate or transfer it to his lainily and take a mortgage over il and thus escape the graduated tax by reducing the value of his estate to under £40,000. The bill ivas read a third time and passed. NEW FINANCE SCHEME.

The Premier moved the second reading of the State Guaranteed Advances Bill. He said it had been felt'that further opportunities should be given settlers to obtain loans at reasonable rates. 'Power was given under the bill to the new Advances Office, which was to be established to lend two and a ha, 1 ! millions a year, preference to be given .to smaller settlers. Power was also £iven to advance sums over £3OOO. The funds of the Public Trust and the Life Insurance Department would be utilised for this purpose. The bill made provision for advances, to local bodies, and .£500,000 was set apart for this purpose. The system proposed was infinitely better than that now in existence. Provision would also be made in respect of mining operations. The new State Guaranteed Advances Department would absorb the Advances to Settlers Department, and a board consisting of six members would be constituted. He proposed to ask the House whether funds for the yurehase of lands for settlement world be included in the Bill. He thought it would be advisable to have this branch included in the State Guaranteed Advances Department. He did not propose to give sellers of lands for settlement debentures with principal and interest payable in London, as the practice was injurious to the Dominion iu connection with its financial operations in London. The system of issuing debentures would be stopped, and instead cash would be paid for estates prrcha«ed. It would also he cheaper and very much better from every point of view for the country. The Bill provided for a sinking fund in case of loans to local bodies. The same system applied to public bodies. As to the advances to settler?, the former could have loans for long or short periods and repay whenever they liked. The bill would aid industry and generally help local bodies and assist settlers on the land and he beneficial to the development of the country generallv. Mr. Allen said" the Bill made no material alteration in the law as regards advances to settlers and workers, save it raised the limit of loans. The Bi|! wag not so satisfactory in its provisions for loans to local bodies. He criticised the constitution of the hoard aid the powers of the superintendent. The scope of the borrowing powers proposed was very large and would have the effect of encouraging easy borrowing and possible spendthrift habits among the people. The limit of £3OOO for advances to workers was far too high; £SOO would be nearer the mar?. EVENING SITTING. Mr. J. Allen continued his speech,

I animadverting on the elauses of the Bill. I Kcferring to loans to local bodies, he I Baid it Ir.' ":e effect of making it more I expensive for local bodies to obtain the I necessary funds to carry on their work

§ than formerly, when loans were granted | at less than' the rate of interest paid [i by the fiovernment. Mr. Fraser urged tliat the settlers in / Otago should he granted advances for tile purpose of irrigation. Mr. 1' ■ supported the Bill on the giound tii.'.l it would provide plenty of J; cheap money and encourage settlement .5- and industry. He could not speak too ; lighly of tbeAdvances to Settlers Officj, 5 which had done more than any institution to build up Xew Zealand. i Mr. Wiiford contended the Bill would 0.0. a great deal of good and ought to have been on the statute book before, 1:1 which case tin' resent distress arising from unemployment could have been considerably lessened. Mr. Jhci)ni!iilil supported the Bill. Mr. Laurenson held that so long as ■ the money was expended upon interest■X bearing works borrowing was justified. j§ If the Bib was extended to allow loans a being made by men with only small § Mieposits to put down, it would do an H immense amount to solidify the country 3 and encourage the working man and the jf struggling settlers. If Mr. Massey said he had no intention m Of making the Bill a party one. He H was not hostile to it. hut it would be I none the worse for criticism. There was not very mucb new in the Bill, 6 . ocept th:- tremendous amount of bor- * rowing r ntemplated. Everything should (he (lorn to keep down the rate of int'• -t on advances to settlers. He had i'i'l! informed on good authority that people in good circumstances in towns borrowed money from the Department and lent it to settlers at a higher rate of interest. Regarding loans to local \bcdies, he regretted the old system was to be superseded by the Hill." This was ■ a retrograde step, and he would vote against that part of the Bill. Mr. Massey agreed with Mr Laurenson that s the maximum advance to a worker of | £330 was too low and he would supi P n rt it being raised to £450 as a niaxiTJ mum, and tliat the man with a family ;; should be , able to borrow a larger ' amount. The Premier, replying, said there was « misapnrehension regarding the position of local bodies requiring small Joans. Clause 71 specially dealt with • rein, and the position -was ntrcngthcni'l by tl)p Bill. If tile amount advanced W settlers was limited to £SOO this would rtsnlt in increased interest • e ' ar gcs by the money lenders and reUiee the earning power of the Depart- »\ Kent. The object of the Bill was to provide cheap monev for all classes. Tt • rv tint Mr. Massey and at. Allen should deprecate the incrcas- | M. borrowing while anxious to raise the maximum amounts of the various loans. *,* He «"'<! «mt as regards loans to public "iWies, (he svstem provided in tbe Bill in the