PARLIAMENT.

Press, Volume XLIV, Issue 19389, 15 August 1928, Page 9

PARLIAMENT.

HOUSE OF REPRESENTATIVES. BUDGET DEBATE GOES ON. (FAIBB ASSOCIATION TSLKOBAM.) WELLINGTON, August 14. The first part of the afternoon sitting of the House of Eepresentativos was occupied with discussion on the presentation of Departmental reports. The financial debate was then resumed. Mr J. E. Hamilton (Awarua) said he proposed to confine his remarks to criticism of Public Works policy. He noticed that about 35 per cent, of our expenditure was on railways. Times hod changed, and with the advent of the motor-vehicle he doubted the wisdom of going on with a railway building policy. It was generally acknowledged by those who knew that the East Coast railway "would not pay axle grease," and why should they go on doing what was bound to end in loss? Motors were in every way more serviceable, and would do all that anyone required. What, then, was the uso of building lines that were only to become white elephants T He wondered when these railways were authorised. It seeniod to him engineers and heads of Departments were running the country. Mr Coates: That is most unfair. The honourable gentleman has an opportunity every session to consider railway construction, and the Government takes the whole responsibility for what is done.

Continuing, Mr Hamilton said the South Island was not asking for a single railway. Mr Coates: That is not correct. The members for Buller and Motueka are asking for lines. ' Mr Hamilton said that if that wero so, they had as much chance of getting them as he had of getting an extension to the Stewart Island wharf. He proceeded to criticise distribution of the petrol tax, which, ho contended, was causing widespread dissatisfaction. County Councils should be allowed to spend their own money at their own discretion. Mr Fatty oa Finance. Mr W. E. Parry (Auckland Central) said the Budget was full of frills and padding. He objeoted to the way in which the Budget was placed before the House. Parliament should be treated as a board of directors, and they should have placed before them a complete There were difficulties in various industries, but there was no one in the House who could say from the Budget what was right and what was wrong. So far as be could Bee the banks were doing very well, while farmers and merchants were passing through hard times. He, quoted the recent statement of Sir Harold Beaucbamp to the effect that the banks had abundance of money to lend, and said it would be interesting to learn where that money came from, and why there was np reduction in interest rates to the small trader. Neither were farmers going to get any relief, because they were mortgaged to their full limit. No' new land w-s being opened up, so that it was clear none of the banks' money was going to help settlers. He predicted that there would be a reduction in imports, consequently a reduced turnover and increased prices, so that workers who were ' already suffering would be hit donbly hard as the result of the policy pursued by the Government. The remedy £or ; this was to increase "the purchasing power of those, who were not now able to buy sufficient of local products to give them a fair standard of living. To do this the Government, would have to regulate imports in ratio to exports, and they must increase the earning power of the workers.

Soldier Settlement. Discussing soldier settlements, be denied that Press and people had so clamoured for farms for soldiers that the Government was compelled to buy land at high prices. Neve)? bad any Government so fine an opportunity to do something for the Dominion. They had five, thousand men ready to go on the land, and they had twenty millions of money, but instead of preparing State lands they bought private lands at high prices, so that the descendants of owners could live idly and play golf The test of success or failure of the Government policy was whether or not production had increased. Notwittu standing that the Government spent thirteen millions on soldier settlemenj;, the Government Statistician "reported that the production of the country per head of population had not increased since 1911. The Minister for Finance stated in his Budget that there could be no reduction in taxation until production increased, so that we found ourselves.in-a state of stalemate, because soldier settlements had not increased the volume of production, owing to Government blundtering in that connexion. *

Government and Farmers. Mr Bellringer (Taranaki) contended that if the volume of our production had not increased, the value cf our products had increased. He defended the soldier settlement policy of the Government, and argued that the proportion of failures was nothing like as great as was generally supposed. If we got out of the problem of settling sol* diera on tbe land with a loss of five millions we got out very well indeed. He maintained that no Government had ever done more for farmers than the present Government. Indeed, if fault was to be found, it was that they had favoured farmers at the expense of the business section of the community. It had been said that the Government had not found money for farmers, but the fact was that where farmers had good security they had no difficulty, in obtaining loans. The State Advances Department was the most popular institution in the Dominion, while the Sural Credits scheme was doing useful service. There was therefore no foundation for the criticism of the Leader of the Opposition that the Government policy in connexion with the Post Office Savings Bank deposits had in any way acted to the detriment of farmers. He justified the Government's refusal to reduce taxation at the present juncture, and praised their land policy, especially that part of it which made the grading of new lands a first consideration. The Hon. Mr Buddo (Eaiapoi) advised eaution in the matter of expenditure on railways. Petrol had revolutionised locomotion, and it was impossible for railways successfully to compete with the motor, and it was unwise to attempt to compel people to use a form of locomotion they did not ivant.

Fertilisers. Mr Elliot (Qroua) suggested that the members' honorarium was too low, and should be increased. He said the Government should this session legislate to increase it, such increase to take effect as from January Ist next. That would give the electors an opportunity to send to Parliament men whom they considered worth the larger sum. Bpea*> ing of deteriorated lands, he contended that a very large the;tend in the North Wand war deteriorating rapidly. , This was due largely ,to|

methods of farming employed by tbe predecessors of the present farmers, who had exhausted the virginal fertility of the land. The task of remedy* ing former errors now fell upon the present generation. This was to be done by the liberal application of fertilisers, phosphatie in eharaeter. These were to be obtained from Nauru and Ocean Islands. Between the yew 1921 and 1927 2,500,000 tons of >hee> phate rock were shipped from Naur* and Ocean Islands. Of this Aostralfsv secured two million tons, while New' Zealand obtained only 495,000 ton*. The maximum New Zealand could obtain under the present agreement would be a million tons, which would be about half our requirement* in a few years, if the increased demand of recent years continues. He urged that every effort should be made to see*** an increased share of Nauru and Ocean Islands products. No effort snooM be spared to secure new supplies of our own. He hoped that toe Minister for Agriculture would during the debate make a statement on tbe subject which would give fanners ever* assurance that adequate supplies of phosphates would be available to them.

Mr McOombs and Hgares. Mr McCombs (Lyttelton) said the tables at the end of the Budget showed clearly that those in charge of the Treasury did not understand the fast thing about the finances of the eotnrtm • ° and it was entirely a matter of lock that the Minister was able to balanee hie Budget at aIL This was evidenced by erratic estimating. These mistake*, by a lucky fluke, happened to behttee each other. He complained of the lavish borrowing going on, and said the full purposes of loans were not disclosed. Railways were mentioned, bet no reference was made to road works, which would be worn out long before the loans were paid off. He also commented on tbe small portion of rereme which was now being transferred frost revenue to the Public Works Fond. In spite of the large sums being borrowed, it was quite evident that the country was not paying its way. The adjournment of the debate was moved by Sir John Luke, and the House rose at mid-night.