BUDGET DEBATE

Ashburton Guardian, Volume 65, Issue 268, 23 August 1945, Page 6

BUDGET DEBATE

BANKING LEGISLATION. GROWING OF WHEAT. (P.A.) WELLINGTON, Aug. 22. Continuing the Financial Debate in the House of Representatives to-night, Mr W. J. Broadfoot (Opposition, Waitomof advocated the further development of hydro-electric power with a view to establishing industries that could produce for all parts of the world. He suggested the production of nitrates, oxygen, hydrogen and other products, of a similar nature. He also suggested the possibility of harnessing thermal power for the production of chemicals and more research into the production of flax fibre with a view to increasing its value. Discussing housing, Mr Broadfoot said New Zealand had exported 13,000,000 feet of building timber, to get a similar amount of Australian hardwood. That amount of timber would have built thousands of homes, and by exporting it. the Government bad deprived thousands of families of homes for many years to come. “Why were we exporting houses to Australia when there was such a shortage in New Zealand?” he asked. “Did the people on the other side of the water hold a pistol to the Minister’s head? It was a sorry example of Government dealing with Government.” The Hon. F. Langstone (Government, Waimarina) said New Zealand’s economy to-day was as well balanced as that of any country, in spite of the withdrawal of 170,000 persons from production for the Armed Forces. Discussing the taking over of the Bank of New Zealand, Mr Langstone said the question of State banking -was agitating the minds of people all over the world. There had been much talk in New Zealand by the Opposition and by vested interests about bureaucracy. The fact was we had the choice between bureaucracy in a mild form or plutocracy, which was what those vested interests stood for —great amalgamations of capital. There was more bureaucracy outside Government-con-trolled enterprises than in them. State bureaucracy, where it occurred in a democratic country, was subject to many safeguards. An outstanding example of State enterprise in New Zealand was the Railways Department with its 25,000 employees but -with hardly a vestige of bureaucracy in it. The Post and Telegraph Department, to 6, compared more than favourably with similar services run in other countries by private enterprise. If for no other reason it was imperative to have a State bank because of the size and complexity of the State activities which themselves required bankingfacilities. Primary Industry. Mr W. H. Gillespie (Opposition, Hurunui), said the Minister of Finance was giving relief to secondary industry through a special depreciation allowane'e on buildings and plant. Was be going to give a similar concession to primary industry? If secondary industry was entitled to it, then the farmer, who produced 50 per cent of the wealth of the country, should also receive relief. Referring to the production of wheat Mr Gillespie said the Minister of Industries, and Commerce should come out and say that he would pay a flat rate of 7s Id a bushel. It was important that New Zealand should produce sufficient wheat, but the Minister could not expect farmers to grow wheat when they could make more by growing linseed, peas or small seeds. What plan had the Government for increasing production? be asked. There was no plan in the Budget, and if the Government had one farmers were entitled to know what it was. The Minister of Finance had said that import control was to continue. He wanted the Minister to say that it would continue on a just basis. Mr C. M. Williams (Government, Kaiapoi) said the Leader of the Opposition the previous evening had spoken like a man who did not expect his chickens to come home to roost. If the Opposition was to become the Government some of the assurances given by Mr Holland would prove embarrassing. Mr Holland had complained of inflation, but the. only alternative to some measure of inflation was to pay for, the war entirely out ot taxation. Mr Holland could not advocate such a policy, for he complained about taxation even when a large part of the war expenses had still to be met. The debate was interrupted at 10.30 p.m. by the adjournment.