PARLIAMENT.

Taranaki Daily News, Volume LV, Issue 88, 30 August 1912, Page 5

PARLIAMENT.

THURSDAY, AUGUST 29. THE LEGISLATIVE COUNCIL. By Telegraph—Press Association. Wellington, Last Night. The Council met at 2.30 p.m. OOUXCIL ELECTION BILL. Mr. Smith reopened the debate on the Council Election Bill. He had been struck by the fact that the so-called Conservatives in the Council had advocated a change, while the Liberal and Democratic members of that body advocated continuance of the present nominative system. That so many attempts had been made to alter the constitution of the Council convinced him that there was a desire on the part of the people for a change. The fact that so many valuable amendments had been made in the legislation introduced during late years showed that the Council had fu> filled its purpose. The nominations to the Council during the past twenty years had been made by one party. Had there been changes of Government the matter might have rectified itself, and there would perhaps have been no demand for alteration of the constitution. He supported the elective, principle, although he Tecogniscd the great danger of duplicating legislative machinery and making the Council a reflex of another place. He preferred large electorates, and denied that the farmers would not secure adequate representation, alleging that Canterbury farmers were becoming very well organised. He would vote for the second reading. Mr. Collins thought that when the House was newly elected it should select its Ministry, and that Ministry should then nominate the Council. This plan, he thought, would destroy all the basis for cavilling at the Council. Under proportional representation the system of selection would be by powerful organisations, each with a full ticket. With the proposed electorates the organisers alone would be able to meet the voters, and only wealthy organisations would meet with success. He would vote for the Bill going into committee, and trusted that a select committee would be appointed to deal with it. Mr. Parata supported the second reading, but would oppose the third reading if the necessary modifications were not satisfactory. Mr. Rigg's amendment was lost by 25 to 6, those voting for the amendment being Messrs. Rigg, Jones, Beehan, Gilmer, Loughnan and Kelly, Mr. Bell replied at length, combatting the objections to large electorates, which he pointed out were essential to proportional representation. He disagreed with the contention that the farmers, under the proposed system, would not be adequately represented. There was a consensus of opinion that a change in the method of choosing the Council was essential, and the elective system must be on a different system to that of the House. Election by both Houses would be objected to by the people, who would want to have a say in the matter themselves. The second reading was agreed to by 38 to 8, and the committal of tKe Bill was fixed for Tuesday next. The Council then rose. HOUSE OF REPRESENTATIVES. The House met at 2.30 p.m. LEAVE OP ABSENCE. A month's leave of absence was granted to Mr. Millar, on the grounds of ill-health. DUNEDIN DRAINAGE BILL. The Dunedin District Drainage and Sewerage Acts ■Amendment Bill (Mr. Sidey) was read a second time. Mr. Massey stated, in connection with a remark by the mover of the Bill, that he intended to introduce a Bill this session to allow local bodies to appoint their own sinking fund commissioners. MOKAU HARBOR BOARD BILL. The Mokau Harbor Board Empowering Bill (Mr. Wilson) was read a second time. LAND AND INCOME ASSESSMENT. Mr. Allen moved the second reading of the Land and Income Assessment Amendment Bill. Included in the Bill, said the Minister, was one of the Government's main principles—taxation of land and the principle to increase graduation and induce owners of large estates to cut up their land. The effect of the liiil would be that it would not pay companies and syndicates to hold large estates. They had no desire to increase taxation on those who held estates under the value of £30,000. Practically speaking, there was an additional tax on all estates over that amount. A regular .graduation had been aimed at for equitable reasons, and he desired to emphasise the fact that taxation on all estates over £30,000 was considerably increased. The present increases were bound to accelerate the cutting up of large estates. The two principles involved were, an alteration of the graduation to a regular system and a 25 per cent, increase on estates over .-€30.000 unimproved value, instead of £40,000 as heretofore. Provision was made for the payment of taxation on goods manufactured outside the country and sold here. He desired to emphasise the fact that the 25 per cent, increase had been reduced for estates of the value of £40,000 to £30,000 unimproved value. He explained that for every £1 increase in the unimproved value of land there was an increase in tax. Taxation would now be placed on a much fairer basis. He. was unable to say what would be the total increase, because he was unable to say what the effect would be in bursting up large estates. If there were no estates broken up there would be a considerable increase in revenue. The House adjourned at 5.30 p.m. The House resumed at 7.30. Sir Joseph Ward, continuing the debate, agreed that, from Mr. Allen's point of view, the course he had chosen to puisne was probably correct. The one pound graduation was under consideration during his (Sir J. Ward's) term of office. Under the proposed system there would not be an increase, but a decline in the tax. The object of the tax was to break up large estates. A reasonable period should be given to holders of large estates to get rid of 1 their stock. At the expiry of that time the tax should be increased. His Government had had more land offered them than they could buy. The large land holders should recognise that the people would not allow them to increase prices. The cutting up of too much land at one time would .produce a panic. New Zealand was a country which must have small holdings. The 'system which obtained in Denmark would have to be established here in the future. Mr. Masisey said that he was disappointed in Sir Joseph Ward's speech. Tie (Mr. Massey) really had nothing to reply to. Mr. Ngata: "The Bill is ours." Mr. Massey: Then the lion, gentleman and his friends will, of course, support Continuing, Mr. Massey said that he thought Mr. Allen ought to be congratulated on bringing down wdiat was undonbtedly the most important Bill of the session, and one that would give satisfaction to the country as a whole. 'The tax up to £30,000 had not been increased. They did not desire to tax fanners who improved their lands. That class had not been affected bv the in. crease. Tn IDI.O there were 40.022 freeholds. Eighty-five per cent, of the farms of Canada were freehold. The Labor

'"ovi-rnmr-nl in Australia were advertising that they were prepared to give cheap freeholds. That was wh'af was wanted in this country. He was doing all in hie power to bring the lands of this country under cultivation. Their policy was not nationalisation of the land, but sub-division of it. Under the Government proposals double the number of people would pay land tax than paid it now. lie was speaking of those holding estates over £30,000. The tax would burst up the large estates, and that was what the Government was aiming at. The Bill was perfectly fair and reasonable. He would have liked to exempt mortgages, but there was a possibility of bogus mortgages. Mr. Buddo said that he was glad to hear a sinner repent. About ten weeks ago the Prime Minister was declaring that the mortgage tax would be abolished. The real problem for the Government was to purchase good land at such a price that the coming settler could afford to pay the additional cost of roading it and still make his holding pay. Mr. Russell said that the policy of the two parties -had become similar,' and he considered the proposal fairer than the present system. The Prime Minister might be sure that there would be no captious or obstructive opposition from his side of the House. He considered, however, that it was an anomaly that the tax did not apply to big city firms holding land of very great value. Mr. Brown said that the Prime Minister should carry out what he advocated while in Opposiiton, viz., settle the native lands and make the natives pay taxes. Mr. Witty contended that the land tax had not been so effective as had been intended. Mr. Wilson held that the graduated land tax was creating speculation by syndicates and 'retarding settlement. Mr. Buchanan said that large land owners were not against the nroposals of the Bill. He had taken up the stand that he would do everything possible to encourage closer settlement.