TO DIVIDE HOUSE.

Auckland Star, Volume LXXI, Issue 157, 4 July 1940, Page 9

TO DIVIDE HOUSE.

BUDGET ORTHODOXY.

MR. LEE VOICES PROTEST. BANK CREDITS ISSUE URGED. (By Telegraph.—•Parliamentary Reporter.) WELLINGTON, this day. The orthodoxy of the Budget proposals were criticised by Mr. J. A. Lee (Dem. Lab., Grey Lynn) in the House of Representatives last night. The Budget, Ihe declared, was cast on more orthodox lines, although it was harsher to greatwealth than any Labour budget yet introduced.

Mr. Lee niovee an amendment to the motion that Mr. Speaker leave the chair. His amendment was to the effect that the Budget proposals were not acceptable on the grounds (1) that they made no provision for the use of public credit to increase New Zealand's internal production; (2) they increased the burden of the internal debt, which would constitute a crushing liability on the people after the war; (3) the system of finance as presented would not enable the rehabilitation of the soldier after the war at the standard which was his right, and (4) they would reduce without adding to the country's--war effort the consumption of food and other necessaries to life in thousands of New Zealand homes.

Aβ he saw It, said Mr. Lee, the Budget proposed to borrow under orthodox methods, even to engage in housing. He contended that the alternative methods he had -suggested for raising the funds required were quite legitimate in everyway. The amendment would be seconded, and even if the mover ami the seconder failed to find any supporter they intended to divide the House because they thought it wise at least to have on record the list of those voting for the orthodox financial system.

The Minister of Finance claimed that borrowing would cause inflation, said Mr. Lee, but he had imposed a sales tax that would inflate workers' wages. Ho believed that a large proportion of New Zealand's war costs could and should be met by the issue of Reserve Bank credit-s. The Democratic Labour party believed that and he also believed that many members of the Labour party still believed that.

The debate was interrupted by th( rising of the House at 10.30 p.m. unti this afternoon.