THE FINANCE BILL

Ashburton Guardian, Volume 56, Issue 245, 29 July 1936, Page 6

THE FINANCE BILL

RESTORATION OF WAGES.

OPPOSITION’S CONTENTIONS

DEBATE ON SECOND READING. cPer Press Association.) WELLINGTON, July 28. In the House of Representatives today the second reading debate on the Finance Bill was resumed by Mr H. S. S. Kyle (Nat., Riccarton), who said that wages should be restored as from April 1. The Government had said that this concession would date back to the date of the election. Mr Savage: We never said: anything of the sort. Mr Kyle said that the favourable financial position of the country enabled the Government to restore the cuts. He thought it was an extraordinary thing that such a Bill should be brought down at that juncture. Previously when restorations had been made it had been done when the Budget was presented. Parliament was now asked to vote huge suni9 of money without knowing the state of the country’s finances, except that there was a Budget surplus. He objected to the clause dealing with the payment of tho expenses to membei s making inquiries on behalf of a Minister, as that would 1 increase the cost of Government. He also drew attention to the fact tlia.t this payment was mado retrospective to April, whereas the cuts were restored only) from July 1. Unwarranted Aspersions. The Hon. J. G. Cobbe (Nat., Oroua) said the Minister, in moving the second reading, made unworthy and unwarranted aspersions on the past Government when lie spoke of the hardships being inflicted on the people. Ihe Minister knew quite well what the state of the finances of the country was at that time, and the Minister had made an unfair reflection on those who had] conducted the affairs of the country during a time of unparalleled difficulty. He said that people in the country viewed the acts of the Government with considerable apprehension, and he referred to some of the legislation alreadv passed since the Government assumed office. Apparently in this socalled democratic country they had appointed a dictator with the poweis of a despotic ruler who had control over monetary matters in New Zealand. Referring to tho Reserve Bank, Mr Cobbe said it was a< mistake to assume that when the bank became nationalised it was in the hands oi the people; actually it was in the hands of a small group of politicians. He thought, liowevei, that the country could look forward to the future because many men. who had drifted into Parliament on the crest of tho guaranteed-prices wave would go out again with the ebb of the Socialist wave. Mr W. T. Anderton (Lab., Eden) said that every individual throughout the length and breadth of tho countiy knew well that the performances of the: members now in the Opposition belied the statements they had made that the restoration of the cuts should be made retrospective to April 1. Mr Forbes, in bis speech, seemed to take the Labour Party to task for not doing that. Mr Forbes, in 1931, when faced with a deficit seemed to think that the only possible method of making up the leeway and to create: stability was to reduce Civil Servants’ wages. _ He reminded the Opposition that their belated desire to assist Civil Servants would not go down with individuals of the country who realised that actions spoke louder than words, and when the Opposition had the opportunity they acted in a way contrary to the spirit of their remarks at the present time. Position Becoming Worse. Mr S. G. Smith (Nat., New Plymouth) said he wondered why that Bill, which was more important to more people than any Bill so far brought down, was not broadcast. He thought the reason was that the Prime Minister’s conscience liad pricked him and ho knew the Bill could be. assailed on the ground of broken promises. The Minister, in moving the second reading, liad repeated the parrot cry that there was no need to curtail expenditure during the depression, and Mr Smith quoted figures to show how the income oi tho country had fallen and how it had been necessary for the Government to meet the position. He said that except for assistance to certain industries and men put. on public works there was no suggestion by the Government of any practical method of solving unemployment in New Zealand. The position was becoming increasingly worse, and there was a large army now on sustenance. H’e appealed to the; Minister to take Part 1 of the Bill hack to consider if it could he made retrospective to April 1. He suggested that more Ministers should he appointed if it was necessary to call on members for assistance. That would he better than the co-opted system. Mr H. E. Herring (Lab., Mid-Can-terbury) expressed the opinion that when the effects of the Bill were felt the people generally would realise that its foundations had been well and truly laid. Freer Spending. The Hon. W. Nash, in reply, said Mr Cobbe had referred to apprehension in the country. He (Mr Nash) did not know where it was, hut he knew thousands of people were now getting things they ought to get and the people generally were feeling that things were hotter and were spending their money. He said that Customs revenue, sales tax and Post Office Savings Banks figures showed whether the people were afraid or not. Mr Nash quoted an article written by a New Zealander in the “Sydney Morning Herald” of July 3 in which he referred to the State Advances Corporation Act, Jn which lie said the way was open for widespread corruption. Mr Forbes interjected. He said, he did not hold that opinion, and repudiated tlio suggestion made by the writer of the article. Mr Nash said he was glad to have such an assurance from Mr Forbes

and the other side of the House. He thought that something should be done to prevent such damaging articles from being published overseas. He referred to the success of the overseas loan. He said that the £6,000,000 loan had been renewed in, London at £3 2s per cent. The original rate was 6 per cent. He denied that there was anything in the Labour Party’s policy that the restoration would be made on April 1, though it might have been said that an early session would he held to deal with it. The second reading was carried.