ELECTIONEERING.

Auckland Star, Volume LXVI, Issue 227, 25 September 1935, Page 12

ELECTIONEERING.

BUDGET SPEECHES.

LABOUR DESK-THUMPING

MB. RUSItWORTH OPT BANKS

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day.

Thirteen members have now taken part in the financial debate and many have filled in full time without giving much attention to the Budget proposals. The debate has been extremely wide in scope, and members have been allowed to talk on any subject, with the result that the speeches have been chiefly of tlio electioneering variety. Yesterday's debate was monotonous, with the exception of a thoughtful speech on banking by Mr. H. M. Rushworth (Independent, Bay of Islands), the peroration by Mr. C. H. Clinkard (Government, Rotorna), which caused some merriment, and a characteristic speech by Mr. F. Langstone (Labour, Waimarino), accompanied by gesticulations and desk thumping.'The debate, which commenced a little after half-past two and continued till midnight, was in the main dull and often only a bare quorum remained in the House.

After Mr. A. S. RlcTiards (Labour, Roskill) concluded the speech which lie commenced on Friday, Mr. Rushwortli caught "Mr." Speaker's eye. He commenced by asking for information as to the liability, if any, of the Reserve Bank, in connection with exchange and as to the payment of New Zealand's share of the war debt. . Mr. Rushwortli said that the national debt had increased by £646,000, but the question he would like to raise was whether tnat was a full and complete statement. When the cxchango rate was lifted the Government was persuaded that it was necessary to indemnify trading banks, which was done by the issue of Treasury bills ultimately taken over by the Reserve Bank. If the trading banks were making a loss of 25 per cent was not the Reserve Bank making a similar loss, to say nothing of the deficit taken over? Why was it not necessary for the Government to idemijify the Reserve Bank if such was |he case? Was it possible to say that'the trading banks must lose, but that the Reserve Bank did not lose ?

"There is a mystery here," said Mr. Rushworth. "If there is an outstanding liability from the Government to tho Reserve Bank, then reference should bo made to it. If there is none, then reference should be made to the mystery that the Reserve Bank can carry the matter out without loss though the other banks made a loss."

Tho member contended tllat if the trading banks ! had not made a loss then their position Was comparable with -hat of an unemployed man who obtained work by giving false information. The country was entitled to information on the subject. Mr. Rushworth. said a second matter ho wished to raise was in relation to the part of the national debt which related to war debts. Till about three years ago provision had to be made for the payment of £800,000 annually, but with the moratorium the position had been relieved. Britain had passed on the benefit of tߧ moratorium and though New Zealand had made the gesture that she would resume payment such payment was not insisted upon. "Has the British Government remitted that portion of the war debt or is it only suspended?" he asked. "Is the Dominion still liable, is it. mounting up? There is no reference to it. The sum is hardly a bagatelle .that would escapc attention." "Mostly Camouflage." "Most of the stuff put up in- the Budget is purely camouflage," declared Mr. J. O'Brien (Labour, Westland). "Every thing -is shown in the best form iand nothing Is shown to the detriment of the Government and what the Opposition objects, to is window dressing. It isn't long since I heard the Prime Minister say he would do the same things again that he had done during the depression."

Mr. H. T. Armstrong (Labour, Christcliurch East): After the election.

Mr. O'Brien then proceeded to tell the House' what he described as "the other side of the picture." Dealing with unemployment, he said, the young men o"f the Dominion were growing up as unskilled labourers. He regretted that old age - p,nd other pensions were not restored to tho original level and that tho Government still retained some 2J per cent of the reduction. Farmers would receive little benefit from recont legislation. Interest rates varied from £7 7/10 for a 20-years term to about £4 14/ for 50 years, the farmer receiving the benefit only with the latter term, so they would have the mortgage in perpetuity. He urged the abolition of the gold tax, stating that the tax often meant the difference between the loss and profit of mining companies.

Rotorua and U.S.A. Tours. Mr. C. 11. Clinkard (Government, Rotorua) defended the gold tax, which he said was levied when the exchange was raised and gold was already realising a high price. He stressed 'the importance of. the tourist traffic and urged its development in every possible way. The advent of a large American line of steamers was doing more for tourists than any other development that had taken place. The sanitarium at Rotorua was over 40 years of age and for many years it had .been realised that it was necessary to build another one to meet requirements, and he hoped the Government would give this important matter consideration in the near future. Touching on unemployment, Mr. Clinkard advocated- the classification of those men v/h.9 . were on relief. Firstclass men should get the best treatment and the system should not bring the best men down to the level. of others, but an endeavour should be made to bring the. lower grade up to a better standard. Settlers had. complained of the difficulty of getting men even at 30/ a week and found. To what extent that obtained it was difficult to say. Mr. A. J. Stallworthy (Independent, Eden): You have, no proof of that in your own district. ' Mr. Clinkard said there might not be in his district, but it was the case in some places. Comfort of camps, with j wireless and other., conveniences, kept men from taking such.' jobs., • A gloomy view of the. Budget was taken by Mr. E. J.. Hoard (Labour, Christcliurch South). . Who is satisfied with the Budget? lie asKed. Farmers are not satisfied. Mr. J. A. Nash (Government, Palmerston): What about olcl age pensioners? Mr. Howard: They're not satisfied. I understand there will be a deputation from them this week. Civil servants were not satisfied, Mr. Howard continued, as they expected their rise to be retrospective from April 1. No one, it appeared, was satisfied with the Budget.

Return of Confidence. Mr. H. S. S. Kyle (Government, Riccarton) said there was far more confidence to-day than five years ago. This was largely due to tlio manner in which the Government carried out its policy. 'Iho position was improving and the Minister of Finances had not received

.-•uflicicnt credit fev Lite way he had handled the problem. Referring to the competition between American and New Zealand shipping, lie asked why people di.i not boycott American vessels. If that was done the American company would not run away with as much as; it was getting away with. Ho hoped the Prime Minister would make a statement on the question.

Mr. F. Langstone. (Labour, Waimarino) said tlie Budget was not a true statement of tha position in which New Zealand was placet to-day. Forty-one Thousand of our eighty thousand fanners had had to go to theii creditors. This affected £90,000,000 worth of mortgages. He criticised the Unemployment Board's policy, especially for subsidising the building of premises for wealthy companies, and compelling poorly-paid girl 3 to pay unemployment tax on meals received during their work. When election. day came, he concluded, the Government would find it had not twenty representatives in the House. Mr. Forbes: Dreadful! Mr. Langstone: There is gang to be a change in Government, and the .sooner the better.