POINT CONCEDED

Evening Post, Volume CXI, Issue 77, 1 April 1931, Page 12

POINT CONCEDED

REFORM PROTEST

LOCAL BODY SUBSIDIES

ME. FORBES GIVES WAY

Labour suffered- a disappointment in the House of Representatives this morning when the prospect of an adverse vote against the Government on the proposed 10 per cent, reduction in the subsidies to local bodies was averted by the Prim© Minister abandoning the proposal. There was a strong protest from several members of the Eeforrn. Party, and the situation had reached an interesting stage when the Leader of the Opposition (the Bight Hon. 3. G. Coates) entered the debate. He suggested that as the feeling of his party was that the local bodies should be placed in the position of giving the farmer relief from rates, the clause should be reconsidered. Mr. Coates said he realised the Prime Minister wanted the 10 per cent. from, everybody, but as far as the subsidy on rates was concerned ho thought the endeavour should be not only to retain it but to increase it if possible. The main speakers from the Beform side had been Messrs. H. G. Dickie (Patea), H. S: S. Kyle (Eicearton), and D. Jones (Mid-Canterbury). EAR-MARKED TAX. Mr. Dickie said that last year the subsidy to local bodies was £952,144, which was to be cut down by £95,000. The subsidies to county councils totalled £220,000, which was taken from the petrol tax. It had been suggested by the Prime Minister that £22,000 could be saved oh the subsidies to local bodies and transferred to the Consolidated Fund, instead of being transferred back to the highways fund.1 This tax had been ear-marked for road improvements and was now being diverted for other purposes. The increased petrol tax last year had been levied for the express purpose of giving relief to local bodies. Mr. Kyle said that the Government had been paying 14s per day on relief works, and now proposed to place a greater burden on the local bodies. It was unfair that the special tax should be taken in this way. INCREASED TRAFFIC. Mr. Jones said that the increased railway freights had put more heavy traffic on the roads, and so had the increased postal charges. This had added to the burden of the local bodies, and the county councils of Mid-Canter-bury strongly protested against any curtailment of their grants. The local bodies had done a great deal of work in the alleviation of the unemployment problem, and it was unfair that their grants should be cut down in this way. All eyes were on Mr. Coates when he made his suggestion to the Prime Minister, and as he concluded Mr. P. Langstone (Lab., Waimarino) interjected: "Take a vote." Mr. W. H. Field (Beform, Otaki) suggested that the Prime Minister should withdraw the clause. "IDENTITY OF INTEREST." The Leader of the Labour Party (Mr. H. E. Holland) declared that a point had been reached where identity of interest was established as between farmers' difficulties in the matter of roading and petrol tax and the interests of the nurses in the hospitals and other wage workers as well. "We find," he said, "the cross benches and the Official Opposition are definitely ranged against Clause 7." Mr. Coates: "No, no." Mr. Holland: "That is disappointing. It did look as if there was a glimmer of light on the Opposition benches, especially the back benches." Mr. Langstone: "They are in revolt." . Mr. Holland suggested to the Eeform Party that the clause should be taken to a vote. If that were done a servico could be done to the farmers and the nurses. DIFFICULTIES OF LOCAL BODIES. The Prime Minister said he did not wish to add to the troubles of local bodies because he realised their difficulties in finding rates at the present time. Ho was quite prepared to amend the clause so that the subsidies ivould not be affected. The amount paid to local bodies was not for salaries but for general roading wtV. Under the circumstances he was quite willing to abandon the proposal. Labour voices: "We thought so." Mr. Langstone: "Help the women and kids." The Prime Minister said that the £20,000 that would have been saved by the reduction in the .subsidies would have to be found by "less objectionable means." Mr. P. Fraser (Lab., Wellington Central): "Why not another cut off the charwomen?" Mr. D. G. Sullivan (Lab., Avon) congratulated Mr. Coates on the concession he had extracted, notwithstanding that the Labour Party had failed to secure any concessions for the women and-children of the country. They had been fighting all night for them, yet Mr. Coates had only to raise his hand and the Prime Minister complacently surrendered. Mr. Sullivan isaid he was glad the Prime Minister had made the concession, but what had interested him tremendously was the bringing to heel of the Prime Minister, who had set out with the intention of strictly adhering to all his proposals. Mr. Langstone said the Government was job-conscious, and had shown itself prepared to sacrifice every principle) in the event of the possibility of an adverse vote. FIRST AID FROM REFORM. "The S.O.S. went out and the Government has hauled down its flag," said Mr. Fraser. Mr. Coates had seen the plight the Government was in, and, as the Beform Party had cold feet over taking possession of the Treasury benches he had sought to patch up the half-corpses already there. Mr. Coates had taken a course in first aid, and he had done his ambulance and first aid work very well. What-had happened was a public example of his skill in that regard; He' had soothed the patient, applied ice to the brow, and reduced the temperature. "How long was this farce going to last?" asked Mr. Frasor. "The Eeform Party with the aid of the Government is forcing its will on the country. It is a Government without responsibility. The strong silent men in the Government are dancing like marionettes to the strings pulled by the Eeform Party." The next speaker was Mr. Sullivan, who was called back to the amendment by the deputy-Chairman (Mr. W. J. Broadfoot), who ruled that tho matter the member was discussing was irrelevant. Mr. Sullivan maintained that he was speaking to tho amendment, and shortly afterwards he was asked to resume his scat. "A little boy trying to be tyrannical;" murmured Mr. Sullivan from his bench. LIMIT OF CONCESSION. In reply to questions, Ihc Prime Minister said Ihat his concession related to local bodies only, and did not extend to tho hospital subsidies, in regard to which he had no intention of departing from, tho principle laid down with respect to tho Public

Service. The amount provided for local bodies did not affect salaries, but expenditure on roading. Mr. M. J. Savage (Lab., Auckland West) moved that the sub-clause relating to reduced subsidies for local bodies, excluding educational institutions, should be deleted. This was defeated by 32 votes to 18. Labour then challenged the wholeclause, including Mr. Forbes's amendment, and again suffered defeat, this time by 3G votes to 17.