WELLINGTON TOPICS.

Taranaki Daily News, 30 August 1917, Page 7

WELLINGTON TOPICS.

TIIIO FINANCIAL DEBATE. THE MINISTER IN REILY, (Special Correspondent.) Wellington, August 27. The discussion of the Budget, popularly known as the financial debate, which concluded on Friday evening was easily the "fist noteablc demonstration of the kinu .hat has taken place in the House since Mr Ballance introduced his farreaching propositi*; between the talk of the last two or three weeks and the talk of twenty-si.v years ago. The existence of a National Government representative of both the important political parties prevented criticism of the heated and bitter character that assailed Mr Ballance'a revolutionary taxation and land reforms, but there was plenty of plain speaking of tiie candid friend description and now and again some display of unmistakable dissent. On the whole, however, the members exercised a very admirable self-restraint and the House may be fairly congratulated upon having got through n. very critical stage of the session with becoming dignity. THE NECESSITIES OF WAR. The keynote of Sir Joseph Ward's reply to the criticism that had been showered upon his proposals was that he had not attempted to produce a reforming Budget, but one that would meet the needs of the situation and satisfy the demands made upon the country by the war. .lie had not taken the line of least resistance in any timid fear of tile opposition he might encounter, but he had sought to make an equitable distribution of the vast burden the people wero required to hear without introducing unnecessarily controversial questions or disturbing existing customs and institutions. There were many questions on which the war had thrown mtfch light, and the altered view and altered conditions would have to be boldly faced on the conclusion of peace, but at the moment the all absorbing purpose of the Dominion must be to assist, the Mother Country and her Allies in defeating tho common enemy. TAXATION PROPOSALS. Sir Joseph Ward did not claim that the taxation he proposed to impose was the most scientific that could be doviscd. But he insisted that in the circumstances it wa.s the taxation that could be most easily and most certainly collected and the taxation that would realise, most fully the principle of equality of sacrifice. He had abandoned the excess profits tax, not because he did not wish to reach the people who were making profits out of the war, but be-imse it would not produce the revenue lie wished to obtain from these very people. Another objection to the tax was that its adjustment to a hundred different cases was left in his hands and this was a power and a responsibility which should not Test with any single individual without statutory directions. The graduated income tax and the graduated land tax would'give much better results. TIIE MORTGAGE TAX. The Mini.-:tci admitted quite frankly that the abolition of the mortgage, tax had brought about the very conditions some of the critics of this step had predicted. The exemption of mortgages from taxation had permitted people to incrense their mortgages to such.an extent that they had to pay no land tax. at all. This, it; will be remembered, was the danger Mr. Ballance and Mr. Seddon foresaw when they were urged again and again to abolish the tax and it is reasonable to assume Sir Joseph ventured where his former leaders hesitated in deference to the strong opinions held by some of his present colleagues. At any rate the experiment lias failed. "It is astounding,'' the. Minister said, ''how many people contrived to increase their mortgager; last year when mortgaged interests were exempt from taxation." Evidently human nature proved more persistent than he and his colleagues expected it would. LIQUOR. The Prohibitionists may find some .difficulty in reconciling themselves to Sir Joseph's attitude as Minister of Finance towards the liquor question, but even they must admit it is only consistent with his desire to avoid revolutionary changes till after the ivar. He expressed "the most profound respect for the temperance people," but he could not contemplate with equanimity at such a time as this a step that would deprive him at once of a large slice of hi.s revenue and necessitate the payment of a huge sum by way of compensation. He believed the country was moving in the direction of State Control and ho thought some change in that direction was absolutely necessary, but when it came the Minister of Finance of the day would have to find from some other source about a million of revenue. That was not a task he would appreciate himself just now ami he doubted if the effort would be in the best interests of the country. THE BUSINESS AHEAD. Now first the financial debate is out | of the way the House will be able to I get alo.ir will; biisires? which the public will regard as of greater importance. Sir Joseph Ward, whose speech is being generally commended as a candid common-sense exposition of the needs of tho country, has prepared the way for the taxation Bills and probably these will make their appearance this week. There will be criticism from both sides of the House, and from the little group between, but it is not expected there will be shy wanton obstruction. Tho Minister has made it abundantly clear that money is wanted and has satisfied a majority of the members he is going tho right way about getting what the country requires. So far the business of the" session has been proceeding very leisurely, but from this forward it will be pushed along at a better paco and unless troubles at present unforeseen arise the prorogation will not be much .later than the usual date.