I.—lo

1882. NEW ZEALAND.

SPECIAL TAXING FOR PUBLIC WORKS COMMITTEE (REPORT OF, TOGETHER WITH MINUTES OF PROCEEDINGS AND APPENDIX).

Brought up sth September, 1882, and ordered to he printed.

ORDERS OF REFERENCE. Extracts from the Journals of the House of Representatives. Feiday, the 18th Day op August, 1882. Resolved, "That the principle of specially taxing property increased in value by the construction, with public money, of railways, roads, bridges, harbour, and other public works is just. " That to give effect to the principle by legislation, so as to do substantial justice, is beset with great difficulties. " That it be referred to a Select Committee to consider the subject and report thereon. The Committee to consist of, Mr. J. E. Brown, Mr. Conolly, Mr. Seddon, the Hon. Sir John Hall, Mr. Hursthouse, Mr. Macandrew, Mr. Montgomery, Mr. Shephard, Mr. Sutton, and the mover. Five to be a quorum ;to report within one week." — (Hon. Major Atkinson.)

Feiday, the 25th Day op August, 1882. Ordered, " That the Special Taxing for Public Works Committee have leave to postpone making their report until Tuesday next."— (Mr. Conolly.)

Tuesday, the 29th Day op August, 1882. Ordered, " That the Special Taxing for Public Works Committee have leave to postpone making their report until Friday next."— (Mr. Conolly.)

Feiday, the Ist Day op September, 1882. Ordered, " That the Special Taxing for Public Works Committee have leave to postpone making their report until, Tuesday next." — (Mr. Conolly.)

EEPORT. The Committee have the honor to report,— 1. That the original proposal of the Immigration and Public Works scheme, as embodied in the nineteenth section of the Immigration and Public Works Act of 1870, was that the interest upon the cost of construction of railways (nothing being said about profit or loss upon working account) was to be charged against the Land Fund of each province in which such railways were constructed, after deducting one-half of the stamp duties collected within each such province. 2. That in the following year the nineteenth section of the Act of 1870 was repealed by the twelfth section of " The Immigration and Public Works Act, 1871," and it was enacted in lieu thereof that, after deducting one-half the stamp duties collected within each province from the interest upon the cost of the construction of railways, and adding thereto any loss which might be made upon working the lines or deducting therefrom any profit upon the said working, the balance was to be charged against the Land Fund of the province ; and further provision was made that "in the event of the Land Fund of such province not being sufficient to meet such charges, the same should be met and recouped to the colony out of moneys to be raised by direct taxation levied within such province." No machinery was provided for levying such taxation, nor was it said whether the taxation was to be imposed and collected by the Provincial or the General Government. 3. That by the thirteenth section of the " Immigration and Public Works Act, 1875," the twelfth section of the Act of 1871 was repealed, and other provision made in lieu thereof, but the same words relating to taxation were repeated in relation to the charge for interest on cost of construction. But in the fifteenth section of the same Act it is directed that, in the event of the Land Fund of any province proving insufficient to meet the charge of interest, and the loss, if any, on working expenses, the General Government was to stop the balance from the Custom dues and other general revenue which was payable over by it to the province under " The Payment of Provinces Act, 1871."

I—l 10.