PARLIAMENT.

Taranaki Daily News, Volume LIII, Issue 116, 24 August 1910, Page 5

PARLIAMENT.

HOUSE OF REPRESENTATIVES. By Telegraph.—Press Association. Wellington, Last Night. MR. COLVM ELECTED CHAIRMAN OP COMMITTEES. In the House of Representatives this afternoon iSir J. 0. Ward moved that Mr. Colvin be appointed Chairman of Committees. iMr. Colvin had been eleven years a member of Parliament, and lmil occupied several positions on local bodies on the West Coast, and served on every public body in the Buller district successfully. He was therefore, said the Premier, well qualified for the position of Chairman of Committees. 'Sir W. Steward expressed surprise that 'lie had not 'been selected by the Government for t-lie position, seeing he was the oldest member of the Party, and had formerly 'been Chairman of Committees:. Mr. Massev moved to substitute Mr. Eraser's name .for Mr. Colvin's. He had no objection to Mr. Colvin, but could not see why the question should; be made a party one. The Opposition was more concerned in the aopointment of a Chairman than the Government Party, as one of his chief duties was to protect the minority. Mr. Taylor (Christchurch) suggested that the time was ripe for a change of Parliamentary procedure, and he desired to see the power of nomination used by the Executive so frequently for parity purposes taken from it. ISir J. G. Ward said the Opposition had been exercising its ingenuity in endeavouring to bring about a split in the Government ranks in connection with the matter. Sir W. Steward had to recogise that circumstances were a determining factor in the solution of a difficult question. Mr. Herries said a few more blunders like the present one would discredit Sir J. G. Ward in the eyes of the House and the country. The motion was carried by 45 to 27. Mr. Colvin returned thanks for his election, and said he would be impartial and courteous in the chair.

GOVERNMENT MEASURES.

N Sir J. G. Ward moved that after Wednesday next, Government business take precedure on Wednesday for the remainder of the session.

I >An amendment by Mr. Massey to fix the hour for Government business as from 7.30 p.m. was negatived. Sir J. G. Ward mentioned that he hoped all the Government policy' measures would be carried this session. The Land Bill would probably be placed before the House next week, and would contain very important proposals, which would meet with the support of the country 1 . The Local Government Bill will be introduced at. the end of next week, but the Bill contained so many far-reach-ing proposals that, in (his opinion, it would not go through this session. The 'measure required to be fully considered by the people concerned. He considered the session would last till the middle or the end of (November. There wa9 no reason why the Defence,,the Superannuation and other Bills should not be put through this session. The motion was carried.

PUBLIC DftßT EXTINCTION. Mr. Allen resumed the debate on the second reading of the Public Debt Extinction Bill, and said he would vote" for the second reading, as he supported the principle of the Bill. The arguments directed against sinking funds did not apply to their use, but to their abuse. 'No country, so far as he was aware, had done more to abuse the principle of sinking funds than the. Dominion, he held that the only sound source from which to derive a sinking fund was surplus revenue. Touching on the Graduated Land Tax,, he said tihat if an estate valued at £50,000 increased by 100 per cent., 5a per cent of the increased value would be paid in taxes. In other, if a property worth £50,000 increased in value to £IOO,OOO, in twenty years the owner, would have paid ±125,000 in graduated land tax.

Mr. .Malcolm held that the best way to provide sinking funds was to cease borrowing. The Bill assumed that the necessity for 'borrowing ceased in twenty years, an entirely unwarranted assumption. The Dominion was about to emibark in water-power utilisation- and other great schemes, which necessitate future .borrowing. He could not support the Bill, which was unnecessary, unworkable, and unfair.

Mr. 'Higg could not see any good reason for objection to the principles of the Bill.

The House rose at 5.30 p.m. , In the, House in the evening, Mr. Hogg I continued his speech on the second read-1 ing of the Public Debt'Extinction,Bill.' He advocated an increase in the gradu-: aited land and income taxes. He would like to see the £150,000 handed over to the, State Guaranteed Advances Office for' lending to settlers multiplied lenfold. Mr. Herries agreed the Bill was to provide means of paying the uebt, but < there was a difference of opinion as to j the best means of doing so. Referring j to the loans to local bodies, for which ■ there was an amount of £753,000 ac- 1 cumulated as sinking funds, he eata the ' Premier proposed to take the interest i on that. Consequently, it would cease ' to grow. Whereas, had it been allowed j to accumulate, the debt would have been ) wiped out in 1916. The whole system < of the Bill was one of deferring pay-.' ments of loans for a period of 75 years.' A more absurd theory than Sir Joseph Ward's that the Dominion could cease borrowing in 20 years had never been held by a statesman in New Zealand. Wfe would have to go on borrowing to a greater extent than ever. . I Mr. Eraser likened the scheme for abolishing the National Debt to the claims made for, liquid air. The principle of the Bill, which was based on ac-) cretions on compound interest, would be successful in regard to small suks, but failed in the case of large amounts. A 'proper sinking fund should have two ' characteristics —first, that investment should be of a liquid nature; second, 'that the proper safeguards should be ! taken. He did not consider the wnnne laid down in the Bill possessed these two principles. Mr. Anderson approved of the proposal to set aside £150,000 yearly, but considered the Premier was over sanguine [in supposing that sum should go to the accumulation fund for an indefinite I period. He would support the Bill, j Mr. Thomson (Wallace) considered thei Bill would reduce borrowing. He did' not believe any future Government would abolish the scheme, which was ! a statesmanlike one and calculated to win praise from succeeding politicians. Mr. Hine favoured the principle of sinking funds, but was opposed to the methods of investment proposed by the Bill. • • | Sir Joseph Ward, replying, said sure-' ly members recognised that there was I now an indebtedness of 75 millions. InI terest on that amount alone would in ' 75 years total 150 millions. By providing eleven millions more we could rejay the whole amount in addition to

the ordinary contributions of interest made in the meantime. It had been suggested that there vvaa not sufficient safeguards provided by the Bill, when the fact was that no investment should be allowed in the Government security. There was no uncertainty in this connection. Continuing, Sir Joseph Ward said all the Opposition critics announced they were going to support the Bill, He was prepared to accept any amendments in committee which he was satisfied would improve the measure. The second reading was carried on the voices. EXHIBITIONS BILL . (The House went into committee on the Exhibitions Bill. < At clause 2, Mr. Masiey suggested that and P. Society shows be exempted. Mr. Russell considered the clause might apply to art societies' exhibitions. After some discussion, the Minister promised to have a proper definition of "exhibition" embodied in the Bill. Mr. Taylor (Christchurch) moved that a proviso be added to clause 7 prohibiting the sale of alcoholic liquors. The Minister could not accept the proviso. After some discussion the amendment was carried on the voices, and the Bill passed through committee. The Foreign Insurance Co.'s Deposits Amendments Bill also passed through committee. Progress was reported and the House rose at 12.30 a.m.