PARLIAMENT.

Press, Volume LXV, Issue 19715, 4 September 1929, Page 11

PARLIAMENT.

HOUSE OF REPRESENTATIVES.

j BUDGET DEBATE STILL ! CONTINUES. (ABRIDGED X>BESS A9SOCIATIOK BXFO*T.) WELLIXGTOX, September 3. The House of Representative! met at 2.30 p.m. Mr W. E. Parry (Lab., Auckland Central) asked whether, in view of the conflict of opinion concerning the Eo-torua-T.upo railway, he would make the proceedings of the Select Committee dealing with the subject open to the Press. The Prime Minister undertook that this should be arranged. Mr H. E. Holland (Lab., Buller) -was granted two days' leave of absence on the ground of urgent public business. The Financial Debate was resumed by Mr A. M. Samuel (8.. Thames), who urged increasing the duty on foreign motor-cars and cinematograph films, as a means of raising additional revenue. | He stated that these two items alone j could provide another £400,000. In Ausj tralia the tax on United States films j was threepence a foot, while in >Tew } Zealand it was only a penny a foot. | He could not see why it should not be i raised at any rate to twopence a foot. j New Land Taxes. | Mr T. W. McDonald (U., Wairarapa) I said the first object of the land tax I proposals was to yield revenue and the | second was to break up big estates in j order that people who were land-hungry would have an opportunity of taking up land. The big of the country had for many years been escaping their just share of taxation. That was the outcome of the poliey of the Reform Party, which had taken taxation off the shoulders of the big man and placed it on the small man. Mr McDonald refuted the suggestion that the proposed land tax was a penal tax, and asked if the land tax of the Reform Government, when applied, was not a ! penal tax, in that it was aimed at j breaking up large estates. The United ! Government was determined to make i the big man pay, and they had the right j man at the head of affair* to do the ; job. Sir Joseph Ward was the only man he knew who could, or would tackle the job, and see to it that big landowners paid up. Mr McDonald said he agreed that there should be modifiaation of the mortgage exemption proposals in the Budget, and he had worked out a system which, he thought, would be more equitable. Under the seheme he suggested there should be complete exemption up to £SOOO, and above that sum and up to £IO,OOO the'proportion to be exempted should be based on the ratio ef the nnimproved value to the capital value of the land. Exemption should be al'owed only on that portion that had relation to land tax, and under the scale he had worked out it would entirely disappear at £14,000. Defence Vote. Mr H. Holland (E., Christcaurch North) said he regretted that no provision had been made for redueing tho defence vote. He was sure many members would agree with him that in this j respect the country was not getting value for its money. A good system of physical training would in his opinion be much more satisfactory. Training in Territorial forces had been found to be of no use, and sometimes a hindranee, when men had gone into camp during the war. Mr Holland referred to superannuation, and suggested that members of the Police Force did not fare well under the present scheme. He urged that members of the Force .'hould be entitled to superannuation after thirty-five instead of forty years' service. The Hon. Mr Wilford interjected: A new Bill haa been partly drafted already. A Labour Member.

Mr P. Fraser (Lab., Wellington Central) expressed his disappointment that unemployment insurance legislation was to be held over till next session. However, he was glad that such legislation was being considered by the Government. There had been an increasing demand for this and other social services, and he hoped the Budget reference to the stabilising of the social services of the State did not contain the meaning that seemed most apparent. If the United Party did not intend to introduce improvements in this direction, the door of hope was closed, and disappointment facea those who had hoped for much as the result of the displacement of Reform from the Treasury benches. Mr Fraser appealed for the overhaul of the whole defence system. He objected to the proposal to increase the defence vote, and described this as "unnecessary expenditure on an obsolete machine."

In conclusion, he asked the Prime Minister to rceonsider the increase in the primage tax, and stated that ho personally preferred an increase in ordinary Customs duty or in income taxation. He could not see how the increase in land tax could destroy land values. The Labour Party would help the Government to put the land taxation through, and it hoped that the Prime Minister would meet it in regard to the

■■i-image duty and that at least he would modify it to the extent of removing it from the necessities of life.

War Pensions. The Hon. Mr Wilford said that as Minister in charge of War Pensions ho desired to thank Mr Waite for his speech on the subject. That speech was not only helpful to the House, but also helpful to the returned soldiers. It was the Government's intention to try to do away with economic pensions by providing avenues by which men who did not reeeive the whole pension might relieve themselves of need for the economic pension and perhaps earn a little more. They would then achieve a fresh hope in life, as the result of the prospect of being able to do something. It was generally acknowledged that men with nothing more to do than drew pensions deteriorated. The cost of economic pensions to this eountry, was £BO,OOO or £90,000 a. year, and this was for men who did not suffer total disability, but who had to be helped that they might live. It had been urged that a Commission should be appointed to deal with this problem, and he was now in a position to announce, on behalf of the Government, that such a body would be set up to consist of one Magistrate, to be appointed by himself (Mr Wilford), and two representatives, one to be appointed by the Returned Soldiers' Association and the Canteen Fund" Executive, and the other to be appointed by the War Funds Council and the Red Cros3. The Commission would be entrusted with the task of endeavouring to find employment for these partially disabled soldiers receiving economic pensions. As soon as the order of reference had been agreed upon, the Commission would immediately function, and hi? hoped this would be achieved in a month's time. Tlio funds at present in the hands of the Ked Cross, the War Funds Council, and the Canteen Fund would be considered in relation to the means of providing employment. He did not wish to ereate the impression that the Commission was to be set up to relieve the Government from its responsibility in this matter. Everything saved would be considered in respect to other claims in the way of pensions. The present restriction in respect of children of blind men of the Forees irno were ra rMtivt ei teeMM frem •♦her

- rax.- sLoixla be removed, and it was intended to grapplo with the problem of attributability. In this respect be believed many difficulties eoold be solved by bringing in the family doetor. He had been astonished that fiftynine per cent, of the appeals had been successful when the decisions of the War Pensions Board in regard to attributability had been taken to the higher Court, but on investigating the matter he had found the explanation was that in most cases a good deal of fresh evidence had been produced. It seemed that sufficient care was not nlways exerted when eases were brought before the War Pensions Board. Mr Wilford stated that the Government had given serious consideration to the problem of unemployment, and ..hen the Land Laws Amendment Bill came before the House (and this would be very soon) it would be seen that it had prepared a course of action that gave promise of at least effecting substantial improvement. Works Stopped. Mr W. H. Field (E., Otaki) stated that he had opposed the Palmerston North deviation in the first plaee, but he had not received sufficient support, and it had been decided to undertake the work. It was therefore a matter of great gratification to him that the present Government had resolved to discontinue the work, even though a largo sum of money had already been spent. In his opinion the deviation should be from Levin to Greatforq. This would save one hour on the journey, and would open up farm land in the vicinity. The route from Levin via Foxton to Greatford would be 32 J miles, compared with 51$ miles by the present, route via Palmerston North. Mr Field suggested that the completion of the South Island Main Trunk railway might very well be delayed till the finances of the country were in a more satisfactory state, and he complimented the Prime Minister on his decision to have The route of the Midland line thoroughly resurveyed in view of the recent earthquake. He hoped the Botorua-Taupo railway had not been permanently abandoned. He had great faith in the pumice land, and he thought the Government might look more favourably on the proposition when tne financial outlook was brighter. He agreed that in view of present transport conditiona serious consideration should be given to the question of whether it would be advisable to construct any more railways, though he considered the linkias; of New Plymouth with the Main Trunks line was a task which should be undertaken.

He expressed the hope that i%e taxation proposals would be remodelled. At any rate they should be substantially amended. They would have ft serioot effect in cases not only of heavily mortgaged land, bat also of heavily ev»Tr valued land. The House rose at lfl.SO. LEGISLATIVE COUNCIL. (ABRIDGED FBXSS ASROCUTIOJf SJEMttT.) WELLINGTON, September 8. In the Legislative Council to-day, Sir James Allen moved that, in tba opinion of the Council, in view of tha agitation for exemption from military service and training on account of conscientious objections, and aa the law makes provision for objectors only on account- of religious beliefs, the Government ehould take into consideration the present position of the la? - and determine whether amendment of the law is necessary to include oonscientioas objectors, and further that in dealinj with the question of alternative servicm consideration should be given to train ing for first aid, ambulance, ao< stretcher-bearer work. Sir James AUei contended that the conscientious ob jeetors could not rightly object to i military training syllabus consisting • instruction calculated to train Terri torials to be good citizens. Ceftaii exemptions were being allowed on ae count of conscience, and he though this would make it difficult for W* Government to make nrovisiqn for. al ternative service. There were tj*Q» who sought to come within the pillar of the ehurch as clergymen refusing i do their military training or altera a tive service. if tfeev refused to d< service as pastors in camps or in tin field, they were not the type of met who were going to serve the best i» terests of the Dominion. The Hon. Mr Earnshaw contend©* that_ the only exemption from military service should be on the ground tt military unfitness. Sir Thomas Mackenzie also support* the motion, arguing that parsons am priests should be tie leader* in tin movement of defence. The Leader of the Council (Mr Silky said that alternative forms of eerrie were at present being considered k; the Government, which woald weleoni beloful suggestions. The motion was carried. The Summer Time Bill and the Lav Practitioners Amendment CSoUeitaH Guarantee Fnnd> Bill wore t»o through their final stages and waaia! the latter with minor amendment*. The Education Amendment Bf ('Hon. Mr Thomson), proposing a ton tern of religious instruction eehaeli was referred to the Education Con mi*+ee for evidence to be taken. The Council adjourned at 4.10 tw* to-morrow.