PARLIAMENT.

Press, Volume LXV, Issue 19692, 8 August 1929, Page 11

PARLIAMENT.

QUESTION DAY IN HOUSE. THE FINANCIAL DEBATE. (rasas association tblsosax.l WELLINGTON, August 7. The House of Representatives met at 2.30 p.m. Mr J. McComba (Lab., Lyttelton) gave notice of intention to introduce the Borough of Lyttelton Corporation Enacting Bill, and Mr W. J. Poison (Ind., Stratford) to introduce the Wellington City Milk Supply Amendment Bill. The following Bills were introduced and read a first time:—Wanganui Harbour District and Empowering Amendment Bill (Hon. Mr Veitch), Timaru Harbour Board Loan Bill (Mr C. Carr), New Zealand Institute of Architects Amendment Bill (Mr B. A. Wright), Petone and Lower Hutt Gas Lighting Amendment Bill (Hon. Mr Wilford). Soldier Settlers* Arrears. The Hon. Mr Forbes, replying to Mr D. McDougall (U., Mataura), said it was not practicable to remit en bloc rents and interest postponed by the late Government in connexion with soldier settlers. Postponements made on the merits of individual cases, and as the charges became due and payable applications for remission would be dealt with by the Land Boards in a similar manner. All recommendations in this connexion would receive sympathetic consideration. Third Party Bisks. The Hon. Mr Veitch, replying to questions submitted by Mr H. Holland (R., Christehurch North), Mr D. G. Sullivan (Lab., Avon), and Mr W. A. Bodkin (TJ., Central Otago), said the Government was investigating whether it was possible to overcome the difficulty emphasised by a recent case in Christehurch in connexion with third party risks under the Motor Vehicles Insurance Act. It was asked that the Government should provide that where a person was killed or injured by a motor vehicle the relatives should not be deprived of their just rights because the owner or driver could not be identified. Pensions. Replying to Mr Carr, the Hon. Mr Veitch said that should the present negotiations with the British Government in regard to pen ions reciprocity prove fruitless, further consideration would be given to the suggestion to provide that people who have reaehed the age of 65 but have not resided 25 years in New Zealand should be granted a pension proportionate to their period of residence in the Dominion. Naturalisation Tees. In the course of a question, Mr W. E. Parry (Lab., Auckland Central) mentioned the increase in the naturalisation fee from £2 to £lO, and said this constituted a hardship to many hardworking, honest persons desiring citizenship. The Hon. Mr de la Perrelle replied that the Minister had power under the regulations to charge a fee not exceeding £1 in the case of indigent persons. Further information was being obtained as to the fees charged for naturalisation in other British Dominions. Pish Export. The Hon. Mr Cobbe, replying to Mr A. E. Ansell (R., Chalmers), said the disabilities to which the New Zealand fish export trade to Australia were subject were already well known, but in spite of them certain exporters maintained a regular and remunerative trade with the Commonwealth. Up to the present the only representations on the subject of sending a man to Australia that bad been received had been from a very small section of the trade, and were quite insufficient to justify any such action on the part of the Government. Empire Preference. Answering a question by Mr Kyle, the Prime Minister said no communication had been received from the British Government intimating the discontinuance of Empire preference. State Advances. Replying to Mr Poison, Sir Joseph Ward said approximately from 65 to 70 per cent, of the loans granted by the State Advances Office on rural lands were for the purpose of the repayment of loans, the balance being made for developmental purposes. Fire Waste. In answer to a question submitted by Mr Fletcher, Sir Apirana Ngata said the Government was fully alive to the fact that fire waste in the Dominion was a matter for serious national concern. With a view to finding a remedy it was proposed to arrange for a discussion between the general manager of the State Fire Office, the Council of the Fire Underwriters, and Inspector of Fire Brigades, who would be asked to submit definite recommendations for the consideration of the Government. The Tariff. The Hon. Mr Taverner informed Mr A. Harris (R., Waitemata) it was not considered advisable that the scope of the investigations of the special committee which had been set cp to eonaider the question as to wheat and flour duties should be extended to cover all tariff questions particularly affecting secondary industries employing New Zealand natural raw products. Minister for Health. In reply to Mr Poison, the Hon. Mr Stallworthy said investigations were always made into reports of hardship and neglect suffered by nurses or probationers on the staff of public hospitals, and a progressive improvement in working hours and conditions was being secured. He further said a chair of midwifery had already been established at the medical school. In reply to Mr J. A. Young (8., Hamilton), the Hon. Mr Stallworthy said the matter of the probable visit to New Zealand of Dr. Janet Campbell (the eminent medical authority at the head of the British Mother and Child Welfare Division of the Health Department of Great Britain) had already been considered by the Government in view of her forthcoming visit to Australia. The House spent the afternoon discussing answers to questions. Debate Besxmed. The Financial debate was continued by the Hon. Mr Young (Reform, Hamilton), when the House resumed after dinner. Mr Young stated that Mr Forbes had misinterpreted Mr Stewart s reference to a deficit. What the exMinister for Finanee had stated was that a small deficit, so long as it was not recurring, did not indicate an unsatisfactory state of the country's finance. He criticised the decision to go on with the South Island railway extension without a thorough preliminary investigation, and said he don'ited whether it would be wise to write some millions off the railways capital account Beferring to the taxation of landholders, he said he considered some of

them would find that the tax represented a very lnrge percentage of their income. In his opinion, if men with capital were prepared to spend money on the development of land, they should be encouraged to do so. They would be bound to employ a good deal of labour in this way. Promise and Fulfilment. Mr Young said the Government had made a great boast before the election that it would, if elected to power, be able to borrow large sums ot money without increased cost in taxation, but the Budget disclosed that the primage duty was to be doubled. It had been said that traders would pay this duty, but he had no doubt that they would pass it on in the price of goods. The farmer, hovrever, could not pass on the increased taxation on his land. Mr Voung asserted that there was no need for an increase in the primage duty, and that the Minister for Finance had estimated that the revenue for the year would be considerably loss than it was the previous year. For instance, he evidentlv anticipated a decrease of over £II,OOO in the beer duty. There did not seem to be any excuse for this indirect taxation. Mr Savage Puxxled. Mr M. J. Savage (Labour, Auckland West) stated that he had been puzzled by the exchange of pleasantries between the Prime Minister, the Leader of the Opposition, and the ex-Minister for Finance. The position appeared to be that Mr Stewart, on the eve of the election, deferred his decision in reference to loans falling due, and the requirements for the coming year, and after the election decided to leave the decision to the incoming Minister. That seemed to have been a perfectly reasonable course to take. Sir Joseph Ward, acting on the advice of financial advisers in London, had decided to float loans for the current year early in January, in anticipation of the hardening of the money market, and it was quite reasonable that he should have made this arrangement, but Sir Josepn Ward had referred to his hands having been tied. He (Mr Savage) could not see how they were tied. The action of the late Minister had been quite reasonable. Had Mr Downie Stewart, at such a time undertaken borrowing and conversion, Sir Joseph Ward would then have had reason to take exception to his action, but the decision bad been left for the incoming Minister to make. Mr Savage added that he had been wondering what all the complaint was about. Sir Joseph Ward had borrowed money in London, had invested it at a profit, and it was there to be called on for the year's requirements. There did not seem to be anything to prevent the country going on the market again if the Finance Minister aaw fit. Banking. Mr Savage then referred to banking figures. He said that had there been a Labour Government in power at the present time, it would have been claimed that these disclosed want of confidence in the Government of the day. Money was going into fixed deposits, and was not being used for production, but we were expected to believe that there was no lack of public confidence in the Government, because there was a United Party in power. They had the confidence of the public, and the banks had the money. (Laughter.) He had never seen a better argument for the State Bank. Mr Savage complained many applicants for loans from the State Advances I Department had received £IOO, £2OO, and sometimes larger sums, less than they had required, and this had necessitated arranging a second mortgage at a heavy cost New Taxes. In regard to the increase in the primage duty Mr Savage aaid he felt quite sure it would be passed on. The Government had said it was only a temporary measure, but he doubted whether it would be temporary so far as those who passed it on were concerned. He imagined consumers would still be paying an increased price for goods after the Government had taken off the increase in the primage duty. He agreed with the proposal to increase taxation on land-holders, and stated that it was quite a uniform policy. The city man paid both land and income tax, and so should the farmer. This did not mean that he advocated an increased tax on the poorer farmers, as their income would not warrant it. He did not think farmers would complain, so long aa they only received the same treatment as people in the cities. Railway Policy. Criticising the Government's railway policy, Mr Savage aaid he could not see how the result of the election eould be interpreted as a mandate for the Government to stop certain works. He thought, for instance, that the PaeroaPokeno connexion should not have been dropped, as it promised to be one of the most satisfactory railways in the eountry. He did not think there was any doubt that electrification of suburban railways, together with improvement in the time-tables, . J"*": **" been an economic proposition, but the Budget indicated that suburban aervices were to be left to motors. In concluding, he urged more expeditious investigation into the construction of the Auckland Harbour bridge, and expressed regret that the Government had not seen fit to increase pensions. It was the purchasing power of the pension that mattered, and there had been no improvement in that direction. Defence of Budget. Mr C. H. Clinkard (United, Botorua) said Mr Downie Stewart had atated that the deficit on the previoua year ■ transactions had been used as an excuse by the United Party. He asked was it not the fact that there waa a deficit of over half a million sufficient reason to aet out determinedly to prepare for a surplua next year! Balerring to taxation, he aaid that he personally did not like the idea of an increase in the primage duty, but he realised that money had to be obtained, and he was gratified that it waa intended that the increase should be only a temporary measure. The graduated land tax might have the effect of breaktog up some large estates, and he hoped it would. He was of opinion that the farmer, who was in a good way financially, should be called on to pay land and income tax, and he crit eised the Befonn Administrations's action in removing the income tax on landholders at the conclusion of the war, aa this tax should not have been removed till the war debts had been paid off. Wood Pulp Industry. | He advocated the development of the wood pulp industry on the Kaituna river. He said that experts had declared that the essentials for this industry were eheap material and cheap power, and these no longer exkted in Canada or on the Continent of Europe. We had them in this eountry, and he considered that a good market for exports eould be obtained. It was too readily accepted that New Zealand eould not successfully undertake exportation to other parts of the world in more than one sphere. He was satisfied that there were good prospects for the wood pulp industry if it were encouraged in i this country. Referring to the stoppage of the I Rotorua-Taupo railway, he aaid that the land in the vicinity had been described aa pumice land. This, he aaid, did not mean that the land waa all of one quality. While some of it would be quite suitable fo» potato crops, it did not follow that it all waa so suited. He considered that it should be d*

veloped along the lines for which it was beat fitted by Nature. Mr J. Bitehener (Reform, Waitaki), moved the adjournment of the debate and the Home roee at 0.50 pjn.