WORK OF THE SESSION

Ashburton Guardian, Volume 51, Issue 213, 22 June 1931, Page 3

WORK OF THE SESSION

ECONOMY PROPOSALS.

FUNDS FOR UNEMPLOYED RELIEF.

(Special to "The Guardian.")

WELLINGTON, June 21. Members oil Parliament will begin to assemble in Wellington from Tuesday, in readiness - far the session, which opens on Thursday. With the political situation as it is, there is every reason for believing that the Government will not bring down a great deal of legislation, and that it will confine its programme to bare essentials. This being so, the session should not be a particularly long one; but there is little doubt that what it lacks in length it will gain in interest. The Prime Minister (the Rt. Hon. G. W. Forbes) stated last week that the present time was not regarded as opportune for making legislative experiments. He had already" decided not to introduce legislation to give effect to the recommendations of Sir Otto Niemeyer concerning banking, currency and. exchange problems, and there is every indication that other proposed measures' will also be shelved. During the coming weeks Mr Forbes will carry to its last stages his economy campaign, aimed at balancing the Budget. Paring the Estimates and taxation increases will unquestionably be the most important of the Government's proposals during the session.

It was stated in Government circles on Saturday that the work of the Economy Committee had been brought to a close as far as its attempts to assist this year's Consolidated revenue were concerned. Having investigated every aspect of the State's activities, and probed into Departmental expenditure with _ particular thoroughness, the Committee will now wait for the important part of its work to be reflected in a substantial reduction in Departmental spending. It is stated that practically the whole of the Committee's recommendations will be carried out, and that a sin-prise awaits the Country in the disclosure of the extent to whidhi the cost of the State services has been reduced. Any proposals to extend Departmental activity has been regarded with undisguised disfavour by the Committee, and members of the Ministrv have received plain indication that the present is not the time for undertaking schemes that would otherwise have been sanctioned. An instance of this is provided by the Air Force vote. It was proposed some time ago that this should be practically doubled, and that the air arm of the defence forces should be built up to greater strength. This proposal has been abandoned. In view of recent developments the opinion of Cabinet is that the cost of maintaining even the existing services is too high. Busy Start Expected. The first few days of the session are certain to be particularly busy. Formal business will be disposed of on Thursday, and it is understood that the House will proceed to the question of granting supply the following day. This must be granted before the end of the month, and the House will proably sit on Monday in order that the unemployment question may be dealt with as soon as possible. The Government is drafting legislation providing for additional funds for the Unemployment Board, which has come to the end of its resources. There is also a possibility that a measure will be introduced early to extend the special powers given to local bodies in 1926 to. raise money for unemployment relief. In view of his recent statements ou the question, it appears to be the wish of the-Prime Minister that local authorities should do as much as they can toward relieving the Unemployment Board of part of its financial burden, and a Bill is apparently being brought down to encourage them to raise more money for relief in their own districts. Highways Finance. One of the first steps to be taken by the Prime Minister will be the appointment of a Select Committee to investigate highways finance. Legislation passed last- year rearranging the allocation of highways revenue was made operative until the end of next August, and Mr Forbes has undertaken that the whole position will be reviewed before that date. At piesent the whole of the proceeds from Customs duties on petrol and tyres, together with certain license fees and fines are ear-marked for reading expenditure. For Forbes's opinion is that ear-marking any tax for a particular purpose is unsound in principle, and that the amount the community can afford to spent on roads should be determined in relation uo the relative urgency of all other calls on the public purse, and the financial position of the country generally. As the ear-marked revenues are at present considered to be more than sufficient to cover maintenance expenditure on highways, it is likely that the Government will seek to make some alteration in the present system.