WORK OF THE SESSION

Dominion, Volume 25, Issue 167, 11 April 1932, Page 10

WORK OF THE SESSION

Economic Readjustment THREE-YEAR-PLAN National Expenditure Bill OTHER MEASURES PENDING (By our Parliamentary Representative.) • Realising the impossibility of reaching budgetary equilibrium by adjustments concentrated on tne operations of a single year, the Government lias definitely set out on the prosecution of a tliree-year plan. However unpleasant the details of the Coalition’s policy may be, some consolation can be had from t evident determination to attack the problem of economic readjustment with an ©ye to the future. If anyone fondly hoped that the Dominion would be able to come through the crisis without a "X ™- of the existing economic system, the an nouncement of the Governments pro-, gramme by the Minister of France, and the subsequent a PP^ ra ° c^ £ 4 National Expenditure A^staent Jßil - must have brought complete disillusion. Sacrifices are demanded of the whole community, and no one is to escape. It . is not too much to say that even bers of Parliament were surprised to learn the extent of the Governments proposals, but there is a general recognition among the Coalition supporters, after hearing Mr. Stewart’s opinions in caucus, that half-measures will not be sufiicient. Labour’s Attitude.

The attitude of the Labour Opposition is another thing, and the Government can look for no assistance from that quarter. “We now know just how far the Government intends to go, and , the, opposition offered in the past will Z be nothing to that which will be put up in the future,” said one Labour member on Saturday. The-National Expenditure Adjustment Bill has ushered in the final stage of the session, and stormy debates are certain to be a feature of the next fortnight or so. It is with the future that the Government is obviously most - coined. Remedial measures adopted since tne emergency session of last proved inadequate. Caught in the ebb of world prices after the tide of post- ' war prosperity which reached its flood in 1929, the Dominion hesitated to set out upon, a course of systematic .readjustment. The Government’s latest measure shows clearly that palliatives have been discarded in 'favour of a comprehensive policy to reduce costs, and however unpalatable may be the imposition 'of fresh burdens, there re- ■ mains the hope expressed by the Min--1 ister of Finance that, with a shqw of determination, budgetary equilibrium and consequent stability should be reashed by 1934. Strenuous Sittings Expected. AU the efforts of the Prime Minister will be directed toward, securing the passage of the National Expenditure Adjustment Bill as soon as possible. Practically all the proposals become operative from April 1, so that any • delay caused through obstructionist tactics by the Opposition wUI not be . ■ effective in the long run. There seems little likelihood of the " measure being passed before the end of this week, and if the Prime Minister were not armed with the closure provision several weeks would be needed. As it is, the Government will probably give two or three full days for free discussion, after which it will •' start to apply the spurs. There are 53 clauses to be gone through in committee, and more marathon sittings are certain to take place. One or two Bills remain to be introduced before the session closes, and it will be well toward the. end of this month or possibly into next before members are able to return to their homes. The Prime Minister has already indicated that a finance Bill will come down, and it is assumed this will deal with further taxation, possibly including the imposition of a sales tax, as suggested by the Economic Committee. ... „ This tax will serve mainly to offset the decline in Customs revenue which is fully expected to continue during the current financial year Mr. Stewart estimates that the shrinkage in Customs receipts this year will be about £900,000, the total amount of the year’s collection being ho more than £5,000,000, as compared with • £8,900,000 in 1929-30. The economists thought that a sales tax might yield £1.000,000, and should this be £0 it will give much-needed relief to the . budgetary position. State Advances Concessions. Other legislation will include provision for the State Advances Depart- ■ ment to give further concessions in deserving cases by permitting the board to arrange loans to mortgagors and capitalise arrears in interest. The board will also be empowered to allow ' the one-half per cent, rebate on prompt payment of current instalments, even although arrears are still outstanding in respect of previous instalments. At present, the board is hampered in •granting concessions by legal obligations. ' ’ ? , ~ , As the Government has decided to extend the life of this and future Parliaments from three to four years, , special legislation will be required to give effect to the proposal. Members generally are in complete agreement with this move, and the opposition might not be as great as might be expected. Even several Labour members are not averse to the life of Parliament being extended, although the policy of the party in the House is definitely against it in view of the fact that no mandate has been given by the country on the question. Actually,, the amount of work yet ■ to be done is not great, but the Government will be hindered by the Opposition's tactics of blind obstruction. A Bill which has been on the stocks for some time relates to the establishment of a Central Bank, but it is unlikely that this will come down this session. It will probably be withheld until after the Ottawa Conference, at which, it is understood, currency questions, as they relate to Empire problems, will be dealt with.