PARLIAMENT.

Taranaki Daily News, 15 July 1916, Page 4

PARLIAMENT.

HOUSE OF REPRESENTATIVES. THE FINANCE BILL. isy Telegraph.—Press Association. Wellington, July 14. After a prolonged discussion the short title was passed. In clause 2 an amendment was proposed defining the expression, ''lncome on which tax is payable,' 1 which led to a discussion. A division was called for, the amendment being carried by 52 to 4. In clause 5, an amendment was proposed that the income tax be increased on assessable income* bv sixpence in the up to ,C!) 00 and one shilling in the £ over that sum. After midnight the clause was passed. In cluuse 14 a proviso was added that the value of land for the valuation of assetg shall be not less than the present sale price. Minor consequential amendments, moved hy the Minister, were made in clauses 15, lfi and 17. To clause 17a was added that in certain hardship the Commissioner may compute the standard income otherwise than under a previous section. Clause 20 was omitted, but a sub-clause was added to clause 21 enabling the Commissioner to make greater provision for a wasting asset. Clauses to 33 were passed as amended by the Minister. At clause 34 (power to Issue debentures in payment of compensation or purchase money for land) objection was taken to the introduction of a new principle by Messrs. Pearee, Nosworthy and others. Bil' Joseph Ward agreed to limit the. operation of the clause to a period terminating twelve months after the war. An amendment substituting the word "may'' for "shall be obliged to" was rejected by 42 to 2. A proviso, added on the motion of the Minister, limiting the operation of the clause to the term of the war with Germany, and for twelve months afterwards, was carried on a division by 40 to 2. Clause !tS was omitted and a new clause substituted, giving power to make regulations a 9 to the investment of moneys and the rates of interest. Wellington, July 14. After the telegraph office closed a number of amendments were moved by the Minister in Part VI. of the Finance Kill, dealing with the stamp duty and were a<;.'eed to without discussion. Part T 'II., referring to the Public Trust Office; Part VIII., Post Office Savings Bank deposits; and Part IX., social insurance, passed after brief discussion. Replying to Mr. M'Coombs, Sir Joseph Ward "sa ; d he could not do it now, but later lie would get a report on the working of the National Provident Fund as between local bodies and its employees. The Bill was reported from Committee with amendments, and the amendments agreed to. The third reading i 9 set down for the next sitting. The house rose at 2.12 a.m. FRIDAY'S SITTING. FINANCE. Wellington, Last Night. Th" IJoi.se met at 2.30 p.m. Sir Joseph Ward moved the third reading of the Finance Bill. He thanked member* for the treatment accorded to what \va« a difficult Bill. He read a statement of the finances of the country for the quarter ended June 30 last, showing a:i increase, in all departments but five, wii'vli amounted to £343,45!), a.s compared \v>lh the col-responding period of 'ast real Among the increases was railways fr<m £952,000 to £1,000,000. There Vn? a decrease on the expenditure for the thice months of £7-140. He said the figures were very satisfactory, anil pointed to a considerable balance on the right side. With the £2,000,000 invested in London, and the new ta.vation, he looked to having on hand for ivar purpose - at the end of the year six and u halt millions. He hoped that what was being done by the Government to ir>'et the altered circumstances created by the war would be appreciated by member;: and the country. He quoted statistics of the wealth of the Dominion pho.ving that New Zealand was one of the safest countries in the world in which to invest. Referring to the pronose.! to issue debentures for land purchased for soldiers, he justified that course, on the ground that it was necessavv to jrovlde for local requirements. The war loan would be raised free from income tax up to 4| per cent. He impressed upon members the importance of the Government doing nothing which Wuiild prove an incentive to capitalists to raise' tlx rates of interest, and pointed out that the 'ssue of £5 bonds had not been .vicce.-sful, which he attributed to the fact tliat the people would no lock up money for fifteen years at 4J per cent. Mr. WillVid objected to some of the st-i'."i>ieuU : .n Sir Joseph Ward's address. He said that if wealthy men would nut siibscrilx to their loan, at 5 per cent, he would take their money. He contended that, our system of taxation was not based upon'onv scientific principle. It seemed to him that our taxation was all in favor of the rich man. Jtr V/'lkiu-on (Egmont), favored an incre..i<: in the graduated tax so as to assist in (.mating up large estates, thereby obtaining huul for settlement which could not. owing to high prices, be secured at present. Mr. Cranio personally approved of the Bill. He hoped after the war that a complete s-ystem of taxation would be proposed. lii*. Newman said that- the way the Finance Minister had handled the Bill had been most satisfactory. He particularly approved of the reduction o< the tax on ;mailer incomes from shilling to sixpence. He thought any regulations to prevent the export of capital would be dodged. Mr. Young said that as the Government had power to take land for soldiers en (iebentuies, on which they paid 5 per ctnt, the natural corollary, in his opinion, was. that a similar course should apply to money. Messrs Walker and Payne continued the debate till the dinner adjournment.

because tlio large landowners wore nof t'ullod i>jion to pay their fair share oi taxat ion. Mr. Jsit4 protested against the weari* some reiteration of arrant nonsense. Mr. W. T. Jennings (Taumarunui). drew attention to the high cost of living so far as settlers iu outlying districts were concerned. Mr. Hindmarsh appealed to the House to deal earnestly with the rent question.

Sir Joseph Ward, replying, said the effect of tlie repeal of mortgage tax would he to help the struggling mortgagor. He pointed out that the Government were not dealing with party policv measures, and that was why groups of professed Labor members failed to appreciate the true position. The all-im-portant work was to obtain the money required. He ridiculed the statement that a large sum could he secured by reducing the exemptions from income tax to £l5O. He moved the third reading, which was agreed to on this voices. The House rose at- 11 p.m. until 7.30 p.m. on Tuesday.