AMENDMENT LOST.

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

AMENDMENT LOST.

MR. LEE'S CHALLENGE. VOTING 63 TO TWO. MR. ATMOHE IN SUPPORT. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. By 03 votes to two the Government disposed of the challenge to its budgetary proposals contained in the amendment moved on Wednesday night in the House of Representatives by Mr. Lee (Democratic Labour, Grey Lynn). Mr. Lee's only supporter was Mr. Atmore (Independent, Nelson), who seconded the amendment, but did not speak to it.

Continuing his speech, which was interrupted by the adjournment on the previous evening, Mr. Lee devoted most of his time to explaining his monetary theories and again accusing the Government of orthodoxy in finance. Instead of being used for production money \v:i« being used ae an instrument for the purpose of squeezing the last ounce out of existing industry. By borrowing £20,000,000, or £30,000,000 if the war became more violent, New Zealand would be building up external debts of £300,000,000 or £400,000,000 and while not helping the Empire's war effort an intolerable burden was being placed on the Dominion, which would be placed in bondage for the future.

New Zealand should only borrow for the purchase of munitions in the event of a long-term guarantee for the purchase of her produce at a price. The time had arrived for the Empire to pool ite resources. If such an agreement were arrived at New Zealand could contribute all the man-power available, ae long as her own defences were not weakened. He did not want to see anything done to place the Dominion at the mercy of overseas financiers after the war. There was no reason why the standard of living should be reduced. It would be on account of the increased cost of importe and increased taxation.

Mr. Holland (Opposition, Chrtetchureh North): Reduced quantities.

Mr. Lee: Let us ration and give every body a fair chance.

He advocated a remiesion of company taxation, the money to be used ae a State advance for the production of additional consumer goods. That would amount to expansion of industry in n practical way.