PARLIAMENT.

Taranaki Daily News, 4 August 1917, Page 8

PARLIAMENT.

HOUSE OF REPRESENTATIVES By Telegraph.—Press Association. "Wellington, Last Night. The Bouse met at 2.30. Notice was given by the Premier to introduce the Parliamentary Representation Bill. Hon. D. Buddo gave notice to ask the Government if it would set up a parliamentary committee to formulate a comprehensive scheme for settling returned soldiers on the land. Sir James Allen stated that in spite of frequent representations no cargo had been brought back on any transports. DEFENCE MATTERS. Mr. Wilford suggested that the generals in charge of the New Zealand Forces should issue a monthly bulletin for publication. Sir James Allen approved, and said he thought it possible that such a bulletin could be issued. The Defence Minister made a statement with regard to applications to the Financial Assistance Board. There had been a total of 442 grants made during July, bringing the total granted to 1531, representing an annual total of £38,842. Dealing with other matters affecting defence, tbe Minister said there was a guard on all our coastal defences. The supply of animuntion was sufficient. The garrisons could be mobilised in a few hours. THE LOAN BILL. At 3.10 the House went into committee on the Loan Bill. Replying to I>. Newman, Sir Joseph Ward said provision for compulsory contributions to the war loan would be made in the Taxing Bill. Answering re-, newed objections to the interest being/ free from taxation, the Minister said if this were not done he would require to issue the loan at Ct per cent. Even then lie might get the money, but the tired would be to put up interest all round. We would certainly not get it at five or five and a, half .subject to income-tax. , Mr. Payne: Then where is the patriotism of the people? Sir J. Ward: What is the use of appealing to patriotism 'when you want twelve millions of money? Mr. Poync: You never said anything truer in your life. Continuing, Sir J. Ward said he was not sure we would get the money even on the terms offered, and he was quite certain we would not get it on any less favorable terms. Mr. Payne protested. Three per cent, was ihe utmost limit to which the country should go. The banks in London held twenty million of our people's money, known as short call cash, on which tln-y were paying no Interest. The Government should compel the banks to keep that money in the Dominion and invest it in war bonds. Mr. Craigie contended that a man with £110,001) would save £SO9 a year by investing it in war bonds as against lending it at six per cent., owing to exemption from income tax. Sir J. Ward, in reply, said they would not get a single application from a man •with £IIO,OOO. If there was any better or cheaper way of raising the money than that in the Bill it would have been proposed to the House, but there was no better way. A division was then called for on clause 4 (exemption from income-tax), the clause being retained. The Bill was reported from committee unamended. On the House resuming at 7.30, on the third reading, Mr. Payne reiterated his ;uir.e.nts against freeing interest from cation. Mr. McCombs said the Bill affirmed the principle that the larger the investor the biggT the interest. Sir Joseph Ward, in reply, said it was quite evident the Labor Party were goiii" to vote against the Bill, consequently they w.re going to vote against the men a/ the front getting pay, and against pensions. They objected to interest free of income-tax, but did they know that every country on the Allies' side who raised" loans had done so on the same principle? He reiterated that his reason for no income-tax being col-lecte-i on the interest was that the money was wanted suid mnfit toe had.. He {Lanicd liter* wu sag warrant for sag-

posing the reference in the. Budget to compulsion meant seizing capital.' It simply meant that heavy taxation would be imposed on those able to do so 'Who had not subscribed to the last or this loan. His sole desire, was to raise money in the cheapest manner, and it would be found this was one of the cheapest loans raised during the war. Full 00-operation of the banks was required iu connection with raising- the loan, and it might be necessary to show them some consideration for their help. The loan was a large one for New Zealand, but. the Government felt they could not go to the Mother Country for assistance. Under the circumstances he appealed to the people for help, for by helping the loan they 'were helping to win the war. The Hill was read a third time, after a division, by 40, to 4, Messrs Payi.e, McCombs, Webb, and Walker voting against it. The Bill was then passed and the House rose at 10 o'clock.