BUDGET BURDEN

Auckland Star, Volume LXXI, Issue 158, 5 July 1940, Page 9

BUDGET BURDEN

ECONOMY DEBATED.

TAXATION PROPOSALS.

dr. McMillan on war work

PRIME MINISTER'S REBUKE.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day,

The doUite on the Budget in the House of Representative*! became more general yewterday whs'n various phases of tho Government's financial proposals for the year were discussed.

Tho amendment moved by Mr. Lee (Democratic Labour, Grey Lynn) suggesting that public credit should he exploited to finance the war was rejected early in the day, and subsequent speakers confined thomeelvcs to comments about various aspects of the taxing proposals, more than one making a plea for relief for those on low salaries.

A proposal was put forward that -ill property should pay an insurance premium for war expenses, ae such property was being protected by the armed I'orcee, on« penny in the £1 being named a« a «um that would raise sufficient to relieve taxpayers with email incomes. While the Government was willing to gus.pond the 40-hour week if it could l>e shown that it was interfering with the production of goods, it was not going to bo a party to abolishing it just for abolishment sake, stated the Minister of Marline, JJr. McMillan. The Government was not going to let the war be used a« an excuse to ca r ry out reactionary j>olitical theories. What was required in New Zealand to-day was the maximum production of goods. This was not always obta-ined by increasing the hours of work. When workers laboured for too long a time and had become tired they made mistakes eaeily and accidents occurred. In Great Britain even most conservative men agreed that social control im-rcMricd efficiency. Prime Minister Defends Red Cross Workcra. "Some people think," Dr. McMillan continued, "that by raising money for tlie Red Cross by holding social afternoons or bridge parties they are helping the war effort. That may be true. They are helping to raise money—

The Prime Minister, Mr. Fraser: They are doing real good work, and I hope no one casts any reflection on it.

Dr. McMillan said 'he had no intention of casting any inflection on theee jieople. The point was that if these l>eople would go into factories—never mind if their huebands had sufficient money to. keep them or not—then that would result in a greater volume of goods for consumption. There was * wonderful field of activity in that direction.

The Prime Minister: A lot of them we offering to do that. Dr. McMillan said the factories were continually taking on new people and training them. Hβ ww sure that when the people of New Zealand thoroughly realised the eerioueness of the position they would all pvM their full weight.

"Save the Empire. ,, "Nothing else but saving the Empire matters to-day," declared Mr. Holland (Opposition, Christehurch North). The Government should welcome constructive criticism from the Opposition, whose duty it was to analyse thoroughly the proposals in the Budget. Everybody in the community was anxious and willing "to pull his weight," and urged the Government to put into practice ite previous promise that everybody be given a taek. While the main proposals of the Government had 'been fairly well accepted by the public there wa* some uneasiness in certain dkectione because of the Government's apparent unwillingness to ff.ee up to the need for greater economies. It was impossible for the Government to sustain its gigantic public worke expenditure, finance the war, Tetain the 40-hour week, have 20,000 to 30,000 men in the defence forces overeeas or at home, and at the same ti#ie maintain the present standard of living. Between 25,000 and 30,000 men had l>een taken away from their normal employment, and as a consequence production could not be maintained ot the previous level. He wae of opinion that the burden of war coste was not being equitably spread.

Nothing Cramped or Hampered. Referring to financing the war effort, Mr. Barclay (Government, Marsden) eaid that although there might not be complete agreement on the methods that had bean employed the fact remained that nothing was being cramped or hampered through lack of finance. The Government had used Reserve Balik credit to the extent of £25,000,000, and nearly half of that had been spent in building houees, which were a splendid asset. He declared that no country in the world was making more liberal allowances to the family man than New Zealand.

AxAtetance given to the farming community by the Government was reviewed by the Minister of Lands, Mr. Lairgfitone. Everything had been done, he Raid, to assist and to encourage the primary producer in tire work of production. Thin yaw the Government was making a st*^* l effort to incre " ee ™ e production of cheese, pork and other like commodities.

Mr. Cobbe (Opposition, Manawatu) said there could be no suggestion that members on the Opposition benches wished to out down public worke expenditure unreasonably, but without doubt there wore eome things which it was intended to do immediately that <ould be deferred for some considerable time. During the la*t four year* several members of the Ministry had visited Europe and must have 'been conversant with the threatening international situation, but they had made no preparation for war whirh was imminent. If better financial method* had been used by the Oovernmrnt during those four years a great deal of extra taxation of to-day would lie unnecessary. The present Bud-ret, he said, had damped a certain amount of entliiwia&m in New Zealand, and he considered that public work* expenditure could bs reduced by £10,000,000 without any serious difficulty. The debate was interrupted by the adjournment at 10.30 p.m., and the House rose until 10.30 a.m. to-day.