THE FINANCIAL DEBATE

Dominion, Volume 10, Issue 3159, 10 August 1917, Page 7

THE FINANCIAL DEBATE

LABOUR MEMBER'S VIEWS WAGE-EARNERS AND THE WAR. ilr. W. A. VEITCH (Wangamii) resumed tho debate on llio Financial Statement. He said that in view of the prevailing unrest among the wage-earners, be proposed to say a i'ow words about Liio position uf tho Labour organisations.

Mors people than ever before wero thinking of important, public affairs, and it should be the care of leaders of Labour to seo that there should be no ill-will against organised Labour when the present stress and turmoil was over. If it should bo otherwise, it would be a bad thing for organised Labour. He urged that the welfare of the working classes was a national question. At tins time he regretted that the Minister of Labour had no shown tho sympathy he should have shown for organised Labour, for ho was not regarded by organised Labour as a friend. Ho was, however, not one of those who said that law and order should not be maintained. He would back the Government always in keeping law and order. It was said now that the country was prosperous. Battier it should be said that a section of the community was prosperous. The wage-earners were in fact very badly off at present. Not enough had" been done to prevent profiteering. Tho value of money had deteriorated 20 per cent. The disorganisation of tho railway services seriously impaired the efficiency ot the people, and ho maintained that."there was not such a serious shortage of running men in the railway service as would justify the drastic curtailment. The Government ought to take steps to deal with the rent problem, preferably by building additional houses. The attitude of Labour at tho outbreak of war had been that tho unions would not press demands for increased pay and improved conditions if they were protected from an mcreaso in the cost of living. Tho unions had been willing to play the game fairly, but they had, been forced to demand increased wages owing to the rapid and oppressive rise in tho cost of commodities. "he private wealth of the country was not decreasing. Trade was good, and tho pro. ducers were getting big prices. But all tho profit was going to a comparatively small class, and the burden of high prices, was bearing heavily upon the great mass of the consumers. Tho Government eventually would have to control shipping in the interests of both producers and consumers. It had been shown that the producers of New Zealand wero being exploited on tho British market. The remedy, as proved by the war, was for this Government to become tho exporting authority and 'arrange for the marketing of the produce not required for local consumption. The consumers of tho Dominion had real rw for discontent at the present time. They wero in the grip of the middlemen. Why should not tho railway service be used as a means of bringing producer and consumer into closer relations? "Unity was needed at the present time, but it wag not promoted by the exploitation of tho workers. He was sorry the Government had said in effect that it had not time to deal with local matters. That decision meant that the Ministers wero not willing to give attention to problems that had- a verv direct, bearing upon national nnitv. Tlio functions pf- tho Arbitration Court would have to be extended, and correlated to some extent with the work of the Board of Trade. Tlicro must bo a basic wage, adjusted scientifically and fluctuating in accordance with changes iu the cost of living. Men who learned from tho official statistics that the cost of living had gone up 20 per cent, could not be expected to rest content when fhey wero given a 10 per cent, rise in wages.

Pensions and Taxation. Mr. E. P. HUDSON (Motueka) said that ho was disappointed that more provision had not been mode for essential public works such as roads and bridges. Ho would have liked to see provision mado also for something like an adequate addition to old-ago pensions.' The item would not have been a, big ono in the expenditure of the country. Ho did not like tlio plan on which old-age pensions were at present given. It was not right, in his opinion, that a man should be penalised for bis thrift. He would prefer to see the old-ago pension wade universal. The money required could bo made up through tho death duties, so that the rich man would pay back a great (leal more than lie received. The amusement tax should be raised to 25 per cent, on tho price of tho ticket, and should applv to races. The land tax should be high enough to break rap big estates, and the graduations of tho income tax should not stop at 7s. Gd. in the pound. A man who had ,£IO,OOO a year should not object to paying half of it in income tax. Tho income tax forms wero 100 complicated. He was in favour of a tax on bachelors; Tlio unmarried admits of the community were in a very comfortable position as compared with tho married men, and (hey should be made to pay for their situation. The fruit-growing indust.rv was suffering grave injustices in'connection with the.tariff. The export of fresh fruit had been prohibited. Machinery for preserving fruit could bo imported, but tho import duty was 30 per cent., as against -20 per cent, on motorcars. Tlio duty was prohibitive, and was preventing tho development of an important industry, and causing tho waste of much fruit. Tho tax on tea was a mistake. Tea was a necessary oi lite, and the effect of the tax would be to encourago the use of inferior and comparatively unwholesome classes of tea. Tho Government could have put mora taxation on such luxuries as fur coats., Hti hoped that much of tlie money provided for tho employment of returned soldiers would be used in the building of roads and.bridges in the back-bocks. The provision made for placing soldiers on tho land was not adequate. Thoro would be a great deal of disappointment and heart-burning if thousands of young men possessing little or no knowledge ot farming operations were placed on sections and left to work out their own salvation. He was in favour of a war bonus to Civil Servants, but high-salaried officers should not share in tho concession. In conclusion, he referred to war pensions. Tho Government and Par lament must do the right thing by tho soldiers and see that no future generation had reason to blush for the treatment accorded the men who had saved the Empire. Our "Unio.uc Distinction." Mr •!• M'COMBS (f.yttelton) said that the motto of the Budget seemed to be "Get rich quick, for to-morrow the soldiers return." The Government was inviting the rich men of Now Zealand to dig themselves in by lending their money.at a good rate of interest free pi income tax. The wealth that should meet the cost .of the war was to be entrenched behind a "scrap of paper that future Parliaments would have to honour. He condemned the terms of the War Loan. Now Zealand was conscripting the last man, but was borrowing the last at tho lender's price. He discu«ed the reinforcement question, saying that tho Government had taken so many men that wo had increased our Mam Bodies out of accumulated reinforcements. So he avgued that the conscription measure -was not necessary. "New Zealand," he said, "has the unmue tbft 1 " 0 - tion and disgrace to bo the first of tho. overseas Dominions to have it said of our manhood that some of the men had to go as conscripts—had to bo forced to the front at tho point of tho bayonet.' He deprecated the abilition of the excessprofits tax. He condemned the inaction of the Government in regard to the cost of breadstuff's, and ho mentioned as a specially bad piece of work the purchase of wheat in Australia, in which the New Zealand Government allowed itself to be "lakon down" to the tuno of 2s. a bushel.

Unity of Purnose. Mr. J. JJ. DICKSON (Chalmers) said he had been sorry to notico indications of an attempt to sow dissension in tho National Government. Unity of purpose was necessary in order that New Zealand hiight complete worthily its sharo of tho war, and he hoped that thero would be no further attempt to foster differences. Ho would like to see a committee of members set up to servo as a means of conveying the opinions of the llouso to Miuisters. Tho Ministry of a, democratic country ought to bo in very close touch with Parliament, but as a matter of fact thero was in existence something very like an autocracy. The railways seemed to be controlled by an autocrat and some sections of tho community were being; put to au extraordinary ami wholly unnecessary amount of inconvenience 3>y the stoppage of essential services. A committee, of tho kind lie had suggested would be of assistance to the Government and would bo ' useful to tho country, which was entitled to be in touch through members of Parliament with the National Ministry. The taxation proposed in the Budget "was heavy, but tho money was requirfd for war- purposes, and the people of New Zealand would not object to pay. He would like to see increased duties on boer and spirits, which would bear further uhurges without .troubling tho consumors. Tho tonus of tho loan woro

attractive from the point cf view of the big lenders, but. lie realised the Government needed a very la;:ie sum ot money and had to meet lenders to some extent. 'Die Budget, as a. whole was courageous, and he hoped thut the expectations of llio Minister of Finance would be fully realised. The debate was adiourned on the motion of Dr. Thacker (Christchurch hast), and the House rose at 11.20 p.m.