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Evening Post, Volume CXII, Issue 14, 16 July 1931, Page 8

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ADDRESS IN REPLY

SEVERAL MORE SPEECHES

■PAETYgPAKBING

Tlie aebato on tho Address-in-Beply was continued in the House pf Eepresentatives yesterday, and when the adjournment was taken at 10.22 p.m. there was uo sign of the end. Again a wide, range of topics was covered, and several speeches were characterised by party sparring. ~: .;, Mr. A. Harris (Keforin, Waitemata) deprecated the lack' of information given by tho Government in New Zealand in connection with its loan prospectuses. The Government should be more frank with the people.' There had been too many Cabinet secrets over loan transactions in the past. The first information covering; the recent loan had como from London, and had been published,a few days, ago in,an Auckland newspaper. It was stated in the prospectus that, public, works- expenditure had been-tapered; off. by':4o,:per cent., but the pnblie had not been told anything ..about it. . Tlie, present ■Government was attempting .tO: restore the country's prosperity by , bleeding it white, but that would not work.... The doubling of tlie postal and telegraph charges had not appreciably increased the revenue. Tho increase defeated its own ends. BALANCING THE BUDGET. Mr. W. E. Parry (Labour, Auckland Central) said that when the Government tried to balance the Budget' by reducing workers' salaries tho Reform Party had given its support, but now that the Government was going to attempt to balance it by extra taxation, Eeform members claimed that it was not necessary to do so. Tho Reform Party was very much concerned about a reduction in the rato of interest on State Advances, but it was tho Bel'orm Party that was responsible for increasing the rate from,4J to 5J per cent. Referring to unemployment, Mr. Parry made a vigorous-attack on the immigration policy of the Beform Party, and said that the Laboir Party had always opposed it. Hutdreds of immigrants had been brougl't into tho Dominion and had been left to clamour round tho Labour bureaus because of the muddling policy of the Beform Party. The real dire need of New Zealand was for a lead to be given to the people, who were not afraid of paying their way, but of paying money into the coffers of a Stato with a bankrupt policy. If the Government had a real plan that would relieve tho distress and cure the financial illness of the Dominion the people of tho country would be with it. ' INTEREST THE BURDEN. 'Mr. C. 1 H. Cliukard (United, Rotorua) quoted English political authorities in support of his contention that the present crisis required to bp dealt with by, no one party. Ho said that the burden that pressed most severely on the peoplo at present was interest, and tho time had come when tho State should "givo 3 lead by effecting a redaction. For this year at least, 1 per cent, should be deducted in respect of State Advances loans. Mr. Clinkard urged tho utmost assistance for local industries. Mr. H. G. Dickie (Eeform, Patea) referred to the many suggestions that land development should bo encouraged, and said that as soon as the present Government came into office it stopped the railway in course of construction for tho opening up of the pumice land in the Taupo region. Many of our present troubles were due to 'currency inflation in England years ago. Touching oa unemployment, Mr. Dickie advocated greater co-operation between the local committees, tho Public Works Department, ana the Unemployment Board. The unemployed could well bo utilised in improving dangerous railway crossings. Tho Minister of Health (the Hon.; A. J. Stallworthy): "Out of railway profits?" NO CONSTBUCTIVE IDEAS. Mr. R. Semple (Labour, Wellington East) said he had been disappointed that the-speech'from tho Throne contained no -constructive ideas, but not one constructive idea had yet been put forward by the Government. Tho Governmont should take the people into its confidence and convince them that the money derived from taxation was bebig used for the best productivo purposes. Discussing wage reductions, Mr. Scmplo pointed out that the Bank o£ England directors.had • decided _to make no "cut," and commended it as a "cold, well thought out business decision." The banks in New Zealand were conspiring to defeat tho Government, if it was' courageous enough to reduce intorest rates, by inducing people to withdraw their money from investments and placo it on fixed deposit. The only hopo for the unemployed was for the Government to pay attention to secondary industries. Land development was all rights but it was impossible .to settlo all the unemployed on tho land. The Unemployment Board had prepared a list of 140 articles which) could be manufactured in the Dominion, thereby enabling our own peoplo to be kept in work and keeping our money within the country. Mr. G. (X Muiins (United, Eoskill) said that .until they could educate tho peoplo up to the use of New Zealand goods the imports into - the country would keep up. Tho Government was planned'for the present position, but" it had to be remembered that it had been loft many heirlooms by the Eeform Party. He instanced the Audiland railway station, which was an absolute waste of money, and the Arapuni hydro-electric works.- Government could not bo held responsible for the large number of men who were out of work*." Apparently, the Labour Party thought that tho Government should provide work for everybody at 14s a day. Mr. J. O'Brien (Labour, Westland): "But you said you would do it." The Loader of the Opposition (the Eight Hon. J. G. Coatcs): "Wasn't it a proniisa?''-. : Mr. Munns said that tho Labour Party's atatements wero made for electioneering purposes. Mr. R. A. Wright (Eeform, Wellington Suburbs) denied the allegation that the present Government had been left the legacies mentioned by Mr. Muuns, and weut on to reply to other statements made in criticism of Eoform; Mr. OT3rien also devoted his speech to replying to points and criticism made by previous speakers. PRIVATE MORTGAGES. Mr. A. E. Jull (United, Waipawa) said that there was a tendency to indicate that loans rather than grants would bo practically the main financial assistance given to people in the earthquake area; and he expressed the .hope that the.administration of the rehabilitation fund would be more sympathetic than.-was suggested ;in the- footnote to the-application form ißsued by the eoinmittoe. Eeforring to tho current negotiations for a reduction in-interest rates, Mi-. Jull said-that nothing that took place in' the discussions would make it obligatory, on the part of the private mortgagee to reduce his rato of interest on current mortgages. That was a matter of vital concern, and wiiilo it might be possible that tho bigger financial institutions might agree to a reduction in present as well as future advances, lie felt that unless some

[means was devised whereby privatq 'mortgagees"could' bo "encouraged into the fold," a very large number of mortgagors who bought their properties at high rates would be placed at a considevablo disadvantage.

"I suggest,"■'added-'Mr. Jull, "that to.meet these cases an extension might be made for ,the principle under,which unearned income is charged a higher amount of income tax than is earned income. Thus we might deternrino that unearned income, which would include interest on mortgages, should pay a groator rate than at present, and there should bo a proviso that the rate should be subject to reduction upon the mortgagee satisfying tho Commissioner of Taxes that ho hfid made a corresponding reduction to his mortgagor. In that way we would ensure some relief in the case of tho privately-owned mortgages. The idea is not to secure additional revenue but to make provision so that private mortgages will not escape." WEATHERING THE STORM. Mr. W. P. Endean (Reform, Parnell) reminded the House that Beform had all last year advised a policy of economy, but it was not heeded.. If the Government had taken the advice it would have been much better able to weather the storm that had descended on us. Ho /criticised the attitude adopted by Mr. Forbes while in England. Mr. Forbes had declared we wanted^ nothing from tho Old Country instead of reminding her that wo were a junior partner in the Empire, that we had fought for her in the war, and that we expected her to reduce her tariff to us. Instead of doing that .'he had said something' about passing the ball and then earue back ,to New Zealand without the ball." 1 : Then,, instead of returning via Canada, and endeavouring to make^a favourable trade agreement with .our .sister Dominion, Mr. Forbes had chosen to come back by a route he had not aeon before—the Suez Canal. Mr. Eiadcau went on to say that Great Britain had been reduced to a third-rate Power economically, while in the matter of defence she wa i nowhere. v Mr. Endean urged the need for maintaining our British market and deploring others. In connection with unemployment, he urged tho Government to see that no malingerers were given relief. .The debate was adjourned.