What the M.P.s were saying Topics led back to key problems

Press, 16 July 1979, Page 2

What the M.P.s were saying Topics led back to key problems

From

OLIVER RIDDELL

Issues in Parliament last week tended to divert the attention of members from the more basic problems of the country’s economy and industrial relations. But whatever the side issue, eventually all topics led back to these two key problems.

! The introduction of legislation to protect and, it is hoped, save the Public Service. Investment Society gave Mr D. F. Quigley (Nat., Rangiora) the chance to compare the attitudes of the Government and the previous Labour Government towards tottering financial institutions.

He referred to the need to reconstitute the managerial and financial structure of the P. 5.1.5., and not just to have regard to the rights and interests of all creditors, members, and shareholders.

If members of the Opposition were so keen to preserve the institution, where, asked Mr Quigley, was their consistency when they had tne opportunity to do that very thing? ) He instanced the Stokes (Valley Licensing Trust, the (Cornish Group, and Perpetiual Trustees. What the Op|position had been' trying to |do then when it was the (Government was attempt to (protect the persons whose (money was invested in those various organisations. Mr T. K. Burke (Lab., West Coast) said the Government had already taken a lot of power upon itself and imposed sales tax on boats and property as well as other items. All of this had been done without Parliament’s authority — exemptions had been removed merely by an administrative act.

This raised a number of questions: He believed that the exemption of $lOOO of sales tax on pottery was about the same as it was in 1936. Incomes had increased enormously since then, but the exemption had remained the same.

The Government ought to have a serious look at the position, Mr Burke said. If the Government intended) tinkering with sales taxi which would be of advan-] ta t ,e to someone, it should; at least adjust the exemption levels accordingly. )

There had already been increases in electricity (charges, on rail fares,' butter, (milk, and petrol, as well as the sales taxes mentioned. I All in all, $5O million was to be raised by administrative [action, or merely by the re-

moval of exemptions on a . range of items. Farmers’ troubles The Government was criticised by Sir Basil Arthur (Lab.. Timaru) for failing to get to' grips w ith the problems facing griculture. A true incentive for farmers was needed, and the fi thing to look at was their taxation structure, he said. The next Labour Govern- ■ ment proposed to explore with farming leaders and representatives of working farmers, the possibility of a “factor tax.” This system meant that taxation on productive ca- . pacity was the basic to be used rather than taxation on income, Sir. Basil Arthur said. If by increased effort and management efficiency farmers could step up production beyond their classifi-; Ication — which was to be agreed mutually with the farmers — the extra income would go to the farmers’ pockets and not the Minister of Fi tance. [! This was the incentive the : Labour Party believed should be applied to set ; New Zealand on the road to > progress.

At present, high taxation, i rising costs, and spiralling interest rates were disincentives which had to be tackled resolutely by the Government if production from the land was to be increased, he said. The farming community would be consulted and he system, more than likely, would be introduced on a voluntary basis. Drug abuse Mr D. L. Kidd (Nat., Marlborough) said that in many quarters there was understandably a very considerable concern about the problem of drug abuse.

The, Government would ensure that the Police received any necessary Assistance required by them to investigate, obtain evidence against, and apprehend drug dealers. This was the proper role of the Government to-! wards the police.

Any other line undermined the work of the police, he said. It underminded the I public in its confidence and I trust in the police, and (would be ineffective in reducing the problem.

The Government had also increased the powers of the Courts, including something that had never been done :before in New Zealand —

the provision for the confiscation of property after | conviction and imprisonIment.

Wage structure The figure of an 1* per cent wage increase leading io a 12 per cent increase in the cost of living is not sus.ainable, and really is a very bad guess, according to Mrs M. Batchelor (Lab., Avon).

The latest figures available were those for the 1977-78 October year which showed an increase of 13.3 per cent in wages, and nothing like the 18 per cent increase mentioned.

Between 1972-75, the gross average wage had been plus 11 per cent, she said. Between 1975-78 it had been minus 5 per cent.

She said the average net wage between 1972-75 had been plus 6 per cent and between 1975-78 had been minus 9 per cent. During 1972-75, the consumers price index had been plus 39 per cent, but during 1975-78 it had been plus 49 per cent.