ON THE BUDGET

Evening Post, Volume XCIV, Issue 41, 17 August 1917, Page 2

ON THE BUDGET

FURTHER VIEWS

EXPRESSED

DEFENCE AND OTHER MATTERS

DEBATE CONTINUED IN PAKLIA

MENT.

Further views on the Financial Statement were expressed in the House of Representatives last night.

Mr. C. E. Statham said they recognised that the Government was feeling the pulse of the House, and might ac a< result modify or alter the Bills which were to be brought down. He did not think that any criticism of the National Cabinet had been made in any party spirit, but was merely what would have happened if there had been two parties in the 'House. The chief complaint 'against the National Government was that it was too slow to grasp its opportunities, particularly in regard to the taxation of luxuries. He considered that a grave mistake had been made by cutting down the suburban railway services.

Several members : Hear, hear.

Mr. Statham contended that the cost of the war, as far as New Zealand was concerned, should be -paid at the- present time, otherwise, when the war was over, taxation would be so heavy that it would be difficult to attract people to the Dominion. If the war bonds were free of income tax it would mean that the taxation would have to be paid by returned soldiers and people who, could not afford to invest in the loans. The only salvation for the country was to bring it to the highest pitch of development', and in this connection he contended that so many men had been sent away that many of our industries were seriously hampered. He contended that it was not advisable in war time to spend a quarter of a million on telegraph extension, as was proposed, his opinion being that at such a time .as this the money could be expended to far better purposes. He contended that the preferential tariff was merely recoiling upon th« heads of' the people of New Zealand in some respects. A 6 to liquor, he was disappointed that the Government had not put on a "thumping big extra tax." If that had been done it would have done more to restrict . drinking than early closing. (Hear, hear.) In the end it might be found that the 1 Governmeni would please nobody. As to taxation, he regretted the fact that no special exemption was proposed for the mar. with a family. (Hear, hear.) TAX ON AMUSEMENTS. Mr. J. Vigor Brown referred first to the theatre tax. He considered that it affected chiefly the wives and mothers and sweethearts of men at the front. "Put it on to beer and spirits," he said, and many members said, "Hear, hear." As to the cost of living, he declared that the Government had done nothing. It was merely bluff. The Government had been three years in existence, and now set up a •Parliamentary Committee to enquire into the subject. Another case of bluff! He complained that no arrangements had been made by Mr. Massey for getting our freight away. Mr. Nosworthy: He did very well while he was away. Turning to the question of Detence, Mr. Brown complained that the Minister had not taken the House into his confidence. The Minister was an absolute autocrat, nothing else. He had said that the whole of the Main Body could not come back. That was said without consulting the House, and he wanted to know why tlie House was not consulted. As a matter of fact, it was time the Minister of Defence was given a rest while someone else had a chance. A "VITIATED" GOVERNMENT. Dr. Newman commenced by saying that the Government had been vitiated by Liberals, who were in it, but if they came to consider the matter they would find that what blame there was fell equally on the shoulders of both parties. As to the vacant seat in the Cabinet, he was not surprised that the Treasurer had not taken any action, because he would thereby disappoint so many of the members. What the Government needed was a policy and a leadership. Only a few days ago the Minister of Defence had said that we must send the last man, and a few days later he said the quota could be cut down. That was the sort of thing that made one feel that the country had no settled policy. As a matter of fact New Zealand had been living in a fool's paradise. N«w Zealand was in a morass of debt. By this time next year our debt would be £150,----000,000, and it was a question as to whether such a huge expenditure was necessary. He had no doubt we would win through, but not without a great deal of trial or trouble. He complained that the Government had never given the lead to the Dominion in the way of economy, and in this connection he thought that expenditure on local camps and Territorial defence could be easily cut down. H« agreed with Mr. Stratham that it was absurd to propose the expenditure of a quarter of a, million on telegraph extension. Our system of taxation was too complex, and had undergone too many alterations. The best thing would be one income tax with one form of gradation. At present no one could find out what taxation he was subject to. He complained that the House had not been sufficiently consulted in regard to taxation, and 1 he contended in this connection that fuller consideration should. be given to the man with a wife and family as compared with the single man ■without responsibilities. Further, he contended that there was a strong- feeling against the increased taxation on companies, but he would put as heavy a tax as possible on beer and spirits and champagne, and motor-cars, and all sorts of. luxuries. He would, if he had the chance, vote against the tax on tea.- He would see what the House thought about the matter before the question was settled. The real trouble was that the Government could not make up its mind about anything. After three years of war the Government had set up a Parliamentary Committee to consider the question of the Cost of Living. He could not see why the Government had not taken control of the whole question years ago. If the Government insisted on keeping down the price of food it could do so. The Government was buying butter, for instance, at Is 3d, and it was being sold outside for Is Bd. The fact was that tilings were not working very smoothly in the Cabinet. The people thought that great things would come out of the Coalition Cabinet, and they had been greatly disappointed. The' House must be given to understand that the Government would economise. His opinion was that all the money asked for was not wanted. All the. time he urged that ,tbe Government' should give the people a lead, a definite policy. Our Ministers had been Home and 'ought to know what was going on, .and yet they gavn us no lead.

TAX UPON TEA,

Mr. A. E. Glover professed himself as a supporter of I lie- National Government until tlio wn-r was over. He was against the tax upon tea. Tea was not a luxury but a necessity, and the tax might, easily result in the price being increased by 6d a pound. He spoke strongly in favouf> of tho amusement tax, based on his recent experience in Sydney, where the ttix appeared (o him to operate quiteve&aonanly, varying as It did from a,

small tax on the small charge to a big tax on the expensive seats. Further, he contended that the reduction of racing meant a corresponding reduction in the totalisator tax, which would have to be made up by some other means. Why shouldn't a man spend a few pounds on the racecourse?

Hon. G. W. Russell: Tell him to put it into the War Loan. (Laughter.) Mr. Glover: "A man is entitled to do what ho likes with his own." (Hear, hear.) He referred to the brave showing made by the New Zealand troops in Australia, and said that it was a blot on the escutcheon of the Commonwealth that it hadjiot responded to the call of the Empire.

At 10.40 p.m. the debate was adjourned on the motion of Mr. C. J. Parr.