THE FINANCE BILL

Taranaki Daily News, 12 April 1918, Page 4

THE FINANCE BILL

A NEW £20,000,000 UOAN,

OUR WAR BILL : £76,000,000. „ i

LIFE 0«' PARLIAMENT FURTHER EXTENDED.

By Telegraph.—Press Association. Wellington, Last Night. In the House of tonight the Finance Bill was introduced by Governor's message, and for which /Sir Joseph Ward claimed urgency, and he proceeded to move the second reading. He explained that the Bill was important because it contained proposals covering the whole financial requirements up to December 31 next on the basis of the present expenditure. That was the usual course. In cases where a special session such as the present was held there could be no estimates. These would be brought down next session. The Bill also provided for increased amount of unauthorised expenditure in case provision already made should prove insufficient. The Bill also fixed the amount of land tax at precisely the same rate as last year. No alteration in the law had taken place in connection with the land tax or income tax. The Bill also provided for special war tax which would also be the same as last year. The amusement would bo amended in the direction of exempting admission fee paid for entering A. and P. shows, patriotic entertainments, and some similar forms of entertainment. So far as the war loan was concerned provision was again made for the purchase of war certificates on time payments by employers and employees. That system was a great success in connection with the last war loan, and he hoped it would be so on this occasion. The Bill repeated compulsory clauses of the former Act, but it proposed to make the financial shirker pay in proportion to his means. That proportion would be determined by the Commissioner of Taxes, who will report to the Minister once it is determined that the compulsory clauses shall be put into operation. The shirker will be penalised to the extent of double the amount of land and income tax ho has to pay. He will then have to make his contribution {o the loan as determined by the Tax Commissioner, on, which he will receive only three per cent., not four and a half per cent., as given to those who subscribed voluntarily.

War loan bonds and certificates bought from others at a discount will not be allowed to count as a contribution to the loan, nor will a person who sold them be allowed to count them. They ■wanted, fresh money, and would not turn over the same money again arid again, ] The Bill gives power to raise an additional twenty millions as a new loan for war purposes. This meant that since August, 1914, authority had been given to i;aise £83,393,830, of which £76,000,000 was for war purposes alone. Of this amount £32,000,000 had been raised in New Zealand. This was exclusive of the twenty millions provided for in this Bill, because that money luid not yet been raised. Over subscriptions (if any) would not be returned, but would be credited to the next twenty-million loan. The period in which the expiring local body loans could be renewed had been extended to twelve months after the war.

Clause nineteen provided for further extension of the life of Parliament until December 19, 1919. This was because it was impossible to hold a gen-i eral election between the close of next session, which would probably open in October, and December 10 of this year. The Government had carefully considered Die position, and had come to the conclusion, after consulting members, that this was the best course to take.

In conclusion Sir Joseph Ward defended the proposal to raise the loan free of income tax, as it was impossible to raise the money required on other terms. Mr. Forbes said the House .mis' give the Government the money required. He personally was opposed to loan investments being free of income tax, but as the Minister of Finance held strong opinions on the point he was not disposed to put his opinion against that of the Minister during the present crisis. Mr. Pearce regretted the Minister had not seen his way to reduce the heavy taxation imposed last year. He approved of the compulsory powers in connection with the loan, hut thought the proposals in the Bill were too indefinite. The Commissioner of Taxes had an absolutely free hand to lajr down what conditions he chose. He might take all a man had. Dr. Newman thought the' proposal to make people subscribe to the loan "according to their means" w;as unsatisfactory, because it afforded no information to the taxpayer as to how much he was expected to contribute. The clause in its" present form was most vicious, and the composition of the board unsatisfactorv.

Mr. Witty did not object to providing the money for war purposes, but protested against the waste going on in the Defence Department. Parliament should not adjourn till the House was told how the Minister of Finance had been spend, ing the money the House voted. Ht would oppose the proposal to extend tin life of Parliament, and the Ministers lmt no right to suspend /Parliament 'during the absence of the leaders.

After eleven o'clock the discussion was continued by Messrs. Brown and Hudson. At 11.20 p.m. Mr. Anderson moved the adjournment of; the debate. The House rose till 11.30 a.m. to-morrow.