PARLIAMENT IN SESSION

Dominion, Volume 24, Issue 266, 6 August 1931, Page 10

PARLIAMENT IN SESSION

Opening of Financial Debate MR. COATES OFFERS CO-OPERATION Revision of Taxation Plans Urged (From Our Parliamentary Representative.) Yesterday was the most important day of the present session so far, the House of Representatives entering upon the discussion of the most drastic financial document presented to Parliament in recent years—the 1931 Budget. The interest shown by the public was inferior only to that displayed in the evening when the Budget was introduced. All galleries were crowded, and Lady Bledisloe followed closely from a front seat in the ladies’ gallery the opening speeches of the Leader of the Opposition, Rt. Hon. J. G. Coates, and the Minister of Lands, Hon. E. A. Ransom. Members, as well as the general public, awaited with more than usual interest the announcement of the Leader of the Opposition as to the attitude his party was likely to adopt during the debate. It had,, become known that the Reform Party in recent caucuses had been sharply divided upon the desirability or otherwise of forcing the Government to a dissolution on the Budget proposals. But the general expectation was realised when Mr. Coates stated early In his speech that his party intended to display no hostility during this debate, but to offer criticism and certain suggestions for Improvements of the Budget plan. He gave no guarantee, however, that the Government would not be pressed to revise certain of its taxation proposals. It was significant that he placed particular emphasis upon the undesirability of reviving the primage duty, and he was critical of the proposal to increase income tax again. A further effort to effect economies in expenditure was advocated by Mr. Coates, who considered this course more palatable than the continued increase of taxation and, indeed, he ventured the opinion that It was the only alternative facing the Government if the revenue position did not improve. While not replying specifically to Mr. Coates, the Minister of Lands, the only other speaker of the evening, expressed his appreciation of the helpful criticism offered. He acknowledged the need for economy, and in making, the Important suggestion that a permanent Economy Committee should keep a watchful eye upon departmental expenditure, he dropped a broad hint that unless every member offered to co-operate in meeting the present position the country would not be able to pull through the depression. The Leader of the Labour Par ty, Mr. H. E. Holland, will be the first speaker this afternoon.

WOMEN TEACHERS Position of Boards DISMISSAL POWERS Reference to e decision by Mr. Justice Herdman, in Auckland, as reported in yesterday’s “Dominion,” that education boards did not have power to dismiss married women teachers already in their employ, was made by Mr. G. C. Black (Ind., Mbtueka), who gave notice of a question on the point to the Minister of Education, when the House met. Mr. Black asked whether, in view of the judge’s decision regarding the powers of boards under the Finance Act of this year, the Minister would introduce legislation this session empowering 1 boards, with the approval of the senior inspector, to dismiss any female married teacher employed in their particular district. He said that acting in terms of the Finance Act, on which the judge’s decision had been made, the Nelson Education Board had, for example, given notice to several married women teachers, after a full consideration of the circumstances of each individual, it having been understood that the intention of the legislation had been to vest boards with this discretionary power. WORKS AT KORO KORO Extension of Special Rates '■ The extension of special rates to parts of the Petone Borough not previously rated is provided for in the Petone Borough Council Empowering Bill, which was introduced by Mr. W. Nash (Lab., Hutt). Last year, for the purpose of relieving unemployment, the Government made a grant for the reconstruction and widening of the Koro Koro Road, Petone. The grant was subject to the total outlay being paid by the Petone Borough Council. Subsequently, the residents of the Koro Koro district petitioned the council and stated that they were willing to come into the general rating system in the event of the road being widened and improved, and the borough water supply system extended to that portion of the borough known as the Koro Koro Special Rating Area. Under the'Bill provision is made for the Koro Koro area to be subject to the same rates as now levied by the council. The Bill was read a first time and referred to the Local Bills Committee. RIVER FLOODING Opening Up Valuable Land WAIRARAPA PROPOSAL Proposals for authorising certain works to prevent flooding and enable valuable land to be developed are contained in the South Wairarapa River Board Empowering Bill, which was read a first time on the motion of Colonel T. W. McDonald (U., Wairarapa). ’This is a very small portion of a much larger _ scheme which the board contemplates' bringing in when the economic condition of the country improves,” said Colonel McDonald in outlining the provisions of the measure. “The chief object of the Bill is to divert the mouth of the Turanganui River, which is now filling up the narrows between the main and the lower lakes. The silt is causing serious blockage and flooding the valuable dairy land round the lake.” The Bill also provided for the straightening of the Ruamahanga River, diverting its channel into what were called the narrows and enabling the flood waters to get from the upper to the lower lake more rapidly than was possible at present. Another provision was to permit of rating, not on the unimproved value as was usual, but on an acreage basis, and it was in respect of this that it was understood there would be one or two objections, although it was believed that provision would be made to meet these objections. The State owned the Wairarapa Lake of about 23,000 acres, and it was understood that much of the adjoining land, if not the whole of it, was of very good quality if it could be brought into cultivation.

If the carrying out of the major scheme did not take away all the water from the larger lake, and he did not think it would, it would certainly do so with a great part of that round the fringe, where the land could be developed for agricultural and pastoral purposes, and there was much land in the vicinity which was regarded as of a very valuable character. The settlers in the vicinity had suffered seriously from floods on their properties for many years past, and if the work proposed were carried out, it would be of the greatest value to the primary producers in that part. Although the work immediately to be undertaken would involve the raising of £lO,OOO, it was desired to carry out more extensive operations. However, the present move was a step in the right direction. Provision was also made in the Bill to acquire land on the George Hume estate, this being necessary to the work lt would also probably be neces-

sary to deal with the levels, of certain roads and bridges, and provision was made to cover anything that might be needed in this respect and for settling any dispute by means of a single arbitrator if found necessary. The Bill was read a first time and referred to the Local Bills Committee. DEFENCE SYSTEM Voluntary Basis PROGRESS OF RECRUITING One half of the proposed establishment of 9818 officers and men of the voluntary Territorial Force has already been recruited, according to a statement by the Minister of Defence, Hon. J. G. Cobbe, in moving the second reading'of the Defence Amendment Bill. The Minister said the Bill simply provided for the extension of the age of training in the Territorial Force and for the extension of the age for transfer to the reserve. The present age for transfer was 25 years, and it was proposed to make this 35. It was considered that the inclusion of a number of older.men would stiffen up the units. There was also provision for allowing officers and non-commissioned officers to remain in the territorials for a longer period. The Bill gave power for the drafting of a territorial into the reserve after serving for three years, if it were found that for business or other reasons a trainee was unable to continue. As a safeguard against heavy recruiting it would, however, be possible for the age of 35 years for drafting to the reserve to be reduced.

Discussing defence questions in general, the Minister recalled that the Defence Amendment Bill of 1930 was thrown out by the Upper House. This sought to abolish compulsory military training for a year, but following the defeat of the measure by the Legislative Council, the desired end had been obtained by Order-in-Council, the Government having decided to carry on the training of the Defence Forces on the same lines as before the reorganisation after 1909. The organisation of the voluntary forces would be on the same lines as those obtaining under the compulsory system, although the establishment would be lower. The' total strength of all units would be 9SIB officers and men, this establishment being regarded as more or less provisional. • Outlying Depots to Go. Trainees would have to undergo six days’ training in camp, and they would be called on to attend two half-day parades and six evening parades, although, variations would be permitted according to circumstances. It was proposed to do away with most of the outlying training depots on the ground of expense, although this would not be done in country districts maintaining mounted rifle units where horses were needed. The proposed change would not affect the system of accounts or of pay as far as the voluntary units were concerned. The Government would provide arms and equipment, drill halls and everything else’ that was necessary. Incidental expenses', for printing, advertising and such things as medal engraving would be totalled by adjutants and the amounts would be shown on the departmental estimates. It was intended that the same system and scale of pay should be retained. The average cost of the Defence Forces for each of the five years preceding 1929 had been £520,366, but the expenditure during the current financial year under the revised system had been fixed nt £200,000 for land defence and £40,000 for the air arm. For that expenditure it was expected that a force would be provided that would be a credit to the Dominion. Mr. F. Langstone (Lab,, Waimarino) : You ought to reverse that expenditure. Recruiting Assisted. Mr. Cobbe said that although there had been a certain amount of criticism of the Government’s proposals, he desired to express his appreciation of the assistance that he had received from the Press of the country. The publicity given to the scheme had been of great help in securing recruits. A tribute had also to be paid to the officers who had for years past given their services gratuitously and to those Permanent Force officers who had assisted in making the voluntary system a success. At the present lime, Major-General W. L. 11. Sinclair-Burgess, General Officer Commanding, reported that half the proposed establishment had been recruited. At July 10 the recruiting had beet, as follows: —Mounted Rifles, 36< ; Artillery, 757; Engineers, 149; Signallers, 117; Infantry, 1091; Army Service Corps, 143; Medical Corps, 127. Protection of Trainees. Mr. F. Waite (Ref., Clutha), said the chief difficulty under the volunteer system was to get men into camp. The men were quite willing to go, but there was the possibility, particularly at a time like the present, that employers would fill their nositions with someone else during their Temporary absence at camp. One of the most valuable clauses in the Compulsory Military Training Act. was that which ensured that employers did not discriminate between men who went to camp and those who did not. There was nothing to protect the men who went to camp. Something should be done to see that such men were not penalised in any way. It seemed strange that a Government bent on econ-

omy should appoint an Under-Secretary of Defence. He was nothing more than a “glorified clerk," and yet he received the same salary as the Commandant of the Forces. Labour Satisfied. t Mr. W. E. Barnard (Lab., Napier) said it was a source of satisfaction to those on the Labour benches that the old compulsory system had been abolished. If the volunteer system were properly encouraged and it received the support it should get from the Government, he was satisfied the scheme would meet the requirements of the country. The Minister. he considered, would have been wise to have the Bill read a second time pro forma and referred to the Defence Committee. The Minister would receive more help in putting his proposals through the House if he took members of the committee more into his confidence. Colonel T. W. McDonald (U., Wairarapa) said the raising of the age for transfer to the reserve to 35 years was of great importance to the new system. Those who had served in the old volunteers knew the value of having seasoned men in a unit. The change to a volunteer system was a very desirable one. He whole-heartedly supported the change-over and the proposals in the Bill. The opinion that every encouragement should be given to'young men to join up with the mounted rifle corps was expressed by Mr. H. S. S. Kyle (Ref., Riccarton). The breeding of remounts should be encouraged. He believed there were not sufficient remounts in New Zealand to-day to equip an expeditionary force should one be required to leave these shores. From what he could gather the Under-Secretary of Defence received £9O more a year than the officer commanding. Was that to give the Undersecretary supreme control? He felt that the commandant and not a civilian should have full charge. Under-Secretary’s Value. The Minister said it had been very gratifying to hear no real arguments put up against the Bill. The member for Clutha had struck a note of pessimism, and evidently imagined the volunteer system was going to be a failure. He regretted that reference had been made to the Under-Secretary. Before his appointment that gentleman was Assistant PublM Trustee, one of the highest public offices in the Dominion. The Under-Secretary had been brought into the department to look after the business end of things. His salary was the same as that of the commandant, and since his appointment as Under-Secretary he had more than saved' his salary for the next 20 years. The advent of the Under-Secretary was one of the best investments the department had made for some years. Referring to the suggestion that the Bill should have gone to the Defence Committee, Mr. Cobbe said the alteration was so small that it was considered hardly worth while taking up the time of the committee. Mr. W. J. Jordan (Lab., Manukau): You have never approached the committee about anything. The Minister said he did not think employees would find any difficulty in obtaining leave from employers to attend camps. He felt sure the employers would rise to the occasion. The Bill was read a second time. NATIONAL PROVIDENT / Superannuation Payments ADJUSTMENT PROVISION "The general purpose of the Bill is to bring the National Provident Fund into line with the Public Service in regard to adjustment of superannuation contributions consequent upon reductions in salaries,” said the Postmaster-General, Hon. J. B. Donald, when explaining the clauses in the National Provident Fund Amendment Bill, which was read a second time. “The National Provident Fund Act,” he continued, “contains no provision to enable this to be done, and the Bill is designed to repair the omission. “This Bill now adjusts the legal position and also gives the contributor the option of paying contributions on the higher salary. Any excess contributions will be credited against future contributions of the local authority and the employee, as has been done with the Public Service funds. “A discretion is given to the National Provident Fund Board to refuse to pay claims for incapacity or for the maternity benefit if these claims are not lodged within twelve months. This is a reasonable period, and it is found advisable to’ give the board this discretion, as otherwise there is sometimes difficulty in establishing the bona tides of delayed claims. “The board is also empowered to reduce or dispense with the waiting period of three months in the case of a contributor who has been in receipt of the incapacity benefit and is again incapacitat» ed within six months through the same illness or injury. In other words, a direct contributor to the fund, who has been totally incapacitated and returns to work too soon and has a relapse, will not be required to undergo a further waiting period of three months before again receiving the incapacity allowance.” Mr. A. Hamilton (Ref., Wallace) paid the amendments were highly technical, and he thought it would be a fair thing on the part of the Minister to refer the Bill to a committee. He would like to know how many local bodies and firms had linked up with the fund. Steps should be taken to encourage employees to avail themselves of the benefits. Mr. W. E. Barnard (Lab., Napier) said it was very desirable that the limits of the scheme should be widened. The Minister said he did not consider it necessary to send the Bill to a committee. It was quite a simple measure. Fifty-three firms representing a total of C5O employees, and 109 local bodies representing 6550 employees, were now covered by the fund. He agreed that the scheme should be extended as much as possible and that it would be a very good thing if all of the people of the Dominion could be included. BANK OF NEW ZEALAND Amending Bill Discussed The opinion that to give effect to the proposals in the Bill would constitute a breach of faith with the shareholders, was expressed by the Prime Minister, Rt. Hon. G. W. Forbes, during the secondreading debate on the Bank of New Zealand Amendment Bill. The Bill, the sponsor of which is Mr. F. Langstone (Lab., Waimarino), seeks to alter the qualification of directors and prevent them from being associated with other banks or financial institutions. The need for experienced men on the directorate was stressed by Mr. Forbes. There should, he said, be no political influence in respect to the banks. He did not think it would be acting fairly and equitably to shareholders for the Government to take the power given it in the Bill. It would have a damaging effect on the holders of shares if it were decided that the policy should be determined by the Government and not by the shareholders. He did not think it would be wise for the House to pass the Bill. .

The discussion was interruiited by the tea adjournment.