HOUSE OF REPRESENTATIVES.

Waikato Times, Volume XXXVII, Issue 2977, 13 August 1891, Page 2

HOUSE OF REPRESENTATIVES.

TUESDAY. The House met at lialfqjast two. A letter from the Auditor-General was road to tho effect that the work of the Audit Department was not at jiresent being sttisfactoiily performed, owing to the staff being shorthanded, and asking the House to take tho matter into consideration. The letter was referred to tho Public Accounts Committee. Mr Soddon introduced tho Nava' and Military Settlers and Volunteers Land Act Amendment Bill. The Land and Income Assessment Bill was further considered in committee. Clause 19, how objection is to be made to assessment, was amended, so as to provide that notice in writing shall be given of Clause 20, Boards of Review to bo appointed. . After considerable discussion, bir John Hall moved an addition to the clause, '• that no jjerson holding Government office shall be capable of sitting on the Board of Review," which was agreed to. Clause 21, powers and duties of the Board. Mr Guinness moved to ammend tho clause by inserting a provision that if an objector to an assessment made a reasonable objection to such assessment, the costs should be paid. Agreed to and the clauso passed. Clause 25: "Tax to be recovered by Commissioner," was amended to provide that a summons shall be served on the defendant at least thirty days before the day ajipointed for hearing, instead of fourteen days. Clauso 30: Power to purchase land at tho value stated in the return in certain events, caused considerable discussion, several mombers contending that a fresh valuation should bo made before tho land was purchased by tho Government. Tho clause was eventually altered on Mr Batlance's motion to provide that any person ,ir company affectod should have the right of a|)|ioal to tho Board of Reviewers to determine tho fair or actual value of tho land. Clause 43: Penalty for making false returns or evading tho tax. Sir John Hall moved a proviso that a penalty should not bo onforccd in cases

whore neglect tn furnish the return lequiied hy the Act was nut wilful. 'Agreed to, and tlio clause ;■■,;• •- d. Schedule A : Tax to be . on aclu il value of land. Sir John Hall Hie I'lemier what concession ho proposed to make us to improvements. Mr B.illance Raid he thought _the h- st plan would be to leave the "X-iKtttion in the Bill us they stood for the present year. Tf the committee struck oil' nil improvements, it. wold lead to a lur«u delieit in the revenue. Mr Shera moved that all improvements be exemp'ed from the Act. Sir G. Grey and Mr (luinn.vs stnbigly supported tilt; amendment, the la'ter asking whether, for the sake of I..sini» n certain amount nt revenue, Liberal inembers of the House should now give up what they had been fighting for for years nast. Mr Samid-rs differed altogether from Mr OuinnesH' views. What, they should do was to make larpe properties in towns pay their fair share of taxation. He moved another amendment to the etfect that the limit, €30,000, should not apply to factories, Iked machinery or any improvement for agricultural or horticultural development. ".Sir G. Grey again appealed to the Premier to pass a proper land tax, which they wore all sent there to "ffect. After further discussion Mr B dlance said the difference between Sir George Grey and the Government was that the lion, gentleman wont a little further than the Got eminent. Tho position taken up by the Government was that they wanted to know where they were in regard to valuations j before they give their final decision. As to improvements, if they found next year that they could dispense with less taxation by exempting improvements it could very easily he done, and that was surely a reasonable proposal to make. Ift asked the committee not to go further than tho Government were opposed to at present, but to leave tho Bill as it stood till next session. If the Government then found that tho circumstances of the colony warranted them in doing it, they would go the full length, and exempt all improvements from taxation. Mr Shera's amendment was then put and lost by 23 to 35. Mr Saunders' amendment was also lost by 2(i to 31. WEDNESDAY. The House met at 2.30 p.m. Mr Saunders brought up the report of the Public Accounts Committee on the Oimaru Harbour Board Loan Bill. The. report was to the elfect that the position of the Board appeared to be such as to render it advisable for Parliament lo abstain from encouraging further linancial operalion by the Board ouUide the means it already possessed and the committee therefore recommended that the Bill referred to be not further proceeded with. It was decided that the report he referred to the Government and that it bo an instruction to the Postmaster-General to take steps to recover from tho Oamaru Harbour Board uioueys due to tho Post Oiiice Trust Fund. During the debato which took place on the report, Mr Duncan and Hon. MeKonzie said the present position of tho Board was principally due to the action of tho Hallway Commissioners who carried goods from Dunodin to Oamaru at much too cheap tates merely to cut oil' the sea tralfic from Oamaru. Mr B dlance told Mr Bryce that the Agent-Generalship question had not yet been considered by the Government, but as soon as Sir Dillon Bell's successor was determined on, he should inform the House of the selection. The Land and Income Assessment Bill was further considered in committee. Schedule A, Clauso 1 : " Mortgagees to bo t.axe ! on mortgagei." Mr Bi'lance moved to exempt Banking Companies or a Building and Investment Company from the operation of this clause. Mr Rhodes protested against such exemption, and said ho should divide the House to show that the Government were in favour of helping banks. Mr Billanco defended the amendment, contending that banks were differently situated as compared with companies. The discussion was interrupted by the 0.30 adjournment. 'lhe House resumed at half-past seven. After further discussion, it was decided to separate Mr Balance's amendment, and tho proposal to exempt banks from taxation for mortgage being put first, it was carried by -lo to l(i. The second part of the amendment providing for the exemption of building and investment societies from taxation for mortgage was, after some discussion, lost on tho voices. An amendment by Mr Shora to exempt all registered .wings banks was lost on the casting vote of tho chairman. Clauso 3: Schedule A was amended to require tho mortgagor to compel the mortgagee to register his mortgage. The schedule as amended was then agreed to. Schedule B: Graduated tax on land, Sir John Hall said it was useless to attempt to make any alteration in this schedule, considering' the majority possessed by tho Government. He wished to sav, however, that the amount of taxation proposed to be levied on particular properties was e.xcessivo and unjust. It was not based on any fixed principle whatever, and since the Financial Statement was delivered the 'axattou'on £100,000 in value had been doubled. He held that tho taxation proposed passed the lino at which taxation ended and confiscation hogan. It was both unjust and impolitic, and he felt sure it would prove very injurious to the country. Mr Ballancn said that Sir John Hall waa tho first to protest against the graduated taxation on improvements. Surely the lion, gentleman must know that the increased taxation depended on the quantity of improvements made, and the intention was to make the tax bear most heavily on the unimproved value of land while tho improved would comparatively escape. If it were found after twelve months that any one was dealt with unjustly an opportunity would be given to amend the law. 11 would be a most beneficial effect if the Inge states were broken up, and he hell that if thoso estates were allowed to remain as they were thero was no hope for the future of the coiony. Mr Bryce did not see any g< od to he gained by the debate on lhe principle of tho Bills at the present stage as it would not influence a single vote. Mr Billanco moved a proviso to the SL-hodule that the tax on ab<ente<-s be increased by 20 per cent After some discussion, Captain Russell remarked that he should liko to see absentee holders of property back again in tho colony as they would at any rate give somewhat of a healthy tone to the politics of the country, which he regretted to say, was imir absent. Mr Rollestou could not see how the Premier's proposal would work and he would vote against it. The Hon. John McKenzie said it was amusing to hear the Opposition take up their present attitude on this question when the matter was almost forced on the Government by one of that party. It was the greatest fallacy to say that such a proposal would drive capital out of the country. Mr Dulhio moved to amend tho proviso to the elfect that it shall only apply to persons who shall be absent from the colony for three years after the passing of the annual Act imposing the tax. After considerable discussion, Mr Duthie's amendment was lost, and Mr B dlance's proviso carried, both tin tho voices. Mr Ballance moved to omit the second paragraph of Schedule B, and to insert "and all graduated tax as aforesaid shall be assessed and levied on the amount of the assessed value nf the land, less all improvements thereon, improvements to include houses and buildings, fencing, planting, draining of land, clearing from timber, scrub or fern, laying down in grass, oats, or pasture, but the effect or benefit of such improvements shall be unexhausted at tho time of the valuation." Agreed to. Schedule B as amended was added tt. tho Bill by 38 to 13. Schedule C : Income of companies. Mr Moore nskeu what tho intention of the Government was in respect to the schedule. Mr Ward said it dealt with companies only who would be charged tho uniform tax of ono shilling without any exemption. (Loft sitting.)