SPEECH BY DR. FINDLAY.

Gisborne Times, Volume XXVII, Issue 2575, 9 August 1909, Page 2

SPEECH BY DR. FINDLAY.

THE TAXATION QUESTION. ll'icu I’Hi'SH AHSlil'l A TlOrV . ! FEILDING, August 7. •ho Hoh. Dr. Findlay addressed a large mooting here ia*t night. _ * The Iviayor (Mr. J. B. Trewen) presided. The Minister o t Justioe, in his speech, so far as statistics were concerned, recast the speeches made at otheir places, notably Timaru and Dunedin, and brought them up to date. Referring to taxation, he said he understood that subject was not moro payable than having a tooth drawn, but since taxation was inevitable, it was well it should receive close attention. He developed this portion of his speech into two principal classse, taxation for necessary State services, and taxation for development of the country and the promotion of the material welfare of special classes of the community. The first included the maintenance of a system of justice, and for the second taxation should he left, at least to some extent, to private property, which benefits most by such expenditure. In tho first case it was not a toll to the State for production, but a return to the State of some portion of the wealth which public expenditure had increased in private hands. It was from such considerations that tho now theory of taxation had arisen, and was in fact adopted by the British Government. no new theory was that the taxpayer should contribute to the necessities of the revenue, to the State in some proportion to the extent of such enhanced value of property.' The speaker said mat- we had heard much against State borrowing, and he admitted., the virtue of self-reliance, but supposing tlie 2-7 millions borrowed during the past 18 years had been raised/ by taxation in New Zealand; upon whom should tho taxation have fallen? Upon tho whole population, including 800,000 or 900.1XJ0 people who have no land or other means of taxation, or upon those whoso wealth was largely increased by the proceeds of such taxation? But they were told that the money requisite for development could bo obtained without further taxation, by more economy in the administration of the Government. ‘‘Unless sacrifices are made in public services,-’ he said, “I believe further reductions than those already contemplated are impossible. We can get more revenue through our railways, certainly, but only by increasing rates, and that increase must bo paid mainly by those the Opposition party claim to represent.” The Minister then answered some criticism by Mr. Massey regarding taxation, and claimed that Mr. Massey had made a blunder in referring to the Minister’s address at Timaru, in which he (Dr. Findlay) said, “The great mass of our people are paying less taxation than formerly. That is, of course, the majority of our population have had the rate of taxation reduced.” This, Mr. Massey had denied. Dr. Findlay said, “You must first look at what is taxed, and what class of purchasers consume it, secondly, on the rate of taxation, and what class pays it. Our total number of direct taxpayers does not exceed 41,000. and direct taxation increased in the last ten years from £703,267 to £1,460,299. This increase has not been due to any increase in rates, but to the enormous increase in the private wealth of the Dominion, which wealth is estimated to have increased since 1891 by not less than 250 millions sterling.” The Minister’s main proposition was that during the last ten years taxation in this country had been reduced by at least 25 per cent, upon the mass of the people, and that tne increase shown in the product of our taxation had been due maifily to indirect taxation. He claimed that the cost of living had increased chiefly because of the increase in the prices of meat, bread, poultry, potatoes, eggs, and similar articles of food, for which taxation was not responsible, and it certainly could not bo said that the Liberal Government had placed upon the mass of the people during the past ten years an increased burden of taxation. Mr. Massey clung to the worn old fiction of the wealthy class, that if you take from the wealthy, by taxation. or otherwise, you necessarily reduce the fund which they devote to wages, and go the worker suffers.” If Mr. Massey would only bring his political economy up to date.,” said the Minister, “who knows but he might then agree with my views of taxation.” Dr. Findlay devoted some attention to the closer settlement of lands. He remarked that it was curious how a political policy of one decade became the accepted creed of the next. Even the Opposition had accepted the policy of resumption of private land for closer settlement. Well, it was not the past but the future that concerned them. More must be done to put people on tho land. Large estates were still the chief obstacle of closer settlement, despite the fact that £6,000,000 had been spent in buying estates,, and they had imposed a graduated land tax to induce, if not to force, subdivision. Mr. Massey had a great liking for Denmark, yet how did Denmark effect a remarkable subdivision of estates. By progressive land taxation, that horribly socialistic graduated tax. If a Dane held one large estate the tax applied ; if two estates, a much greater tax, and so on until it grew almost to confiscation; because the object of the Danes was to set people an the land. It was Mr. Massey who rejoiced in the Danish success, and who saw no socialism in Danisli methods of subdivision, and would he not then adopt the same means to similarly subdivide estates in New Zealand? That seemed like the question of an electioneering campaign, and would probably be answered in an electioneering wty. Denmark was a splendid object lesson. We are, he said, prepared to copy Her'methods. Our graduated land tax was promoting subdivision, and they must still do more. Voluntary private subdivision must be mainly looked to for widespread closer settlement, rather than to State purchase. Summing up this, the speaker said: “If the Special Settlement Finance Bill of last year is passed into law, we will say to the landless, ‘Look around you. If you can get a large owner to sell an estate suitable for closer settlement at a reasonable price, the State will guarantee to find the whole of the purchase money, and will give you the fee simple of your selection.’ ” ,