LABOUR ASKS FOR ELECTION DATE

Evening Post, Volume CXII, Issue 91, 14 October 1931, Page 9

LABOUR ASKS FOR ELECTION DATE

ABOLITION OF GRADUATED LAND TAX

The debate on the Supplementary Budget occupied most o£ the sitting hours of the House of Representatives yesterday, when th*» Labour Party strongly criticised the Government's proposals to abolish the graduated land tax and to amend the Industrial Conciliation and Arbitration Act so as to provide for compulsory conciliation and voluntary arbitration. Repeated requests were made for an announcement as to whether or not the life of the present Parliament was to be prolonged, several speakers urging that the people had a right to pronounce judgment on the Government's policy. The Ministerial reply came from the Minister of Agriculture (the Hon. D. Jones), who said that the Budget was based on the principle of taxing those who were best able to bear it. He contended that the land tax was not based on ability to pay. Mr. Jones asserted that those calling for an election were endeavouring to make political capital.

The Leader of the Opposition (Mr. H. E. Holland) said that before they could adequately consider tho Budget they should be in a position to know how long the present Parliament was to continue. They also required to know Mr. Coates's unemployment policy. As tho Supplementary Budget was v complete reversal of tho United Party's policy and a partial reversal of the Reform Party's policy, it was only right that tho people should have a chance to declare themselves upon it. This was undoubtedly the correct procedure to adopt. Tho Labour Party had repeatedly asked if, the two parties to the Coalition had reached any agreement in regard to the elections, but so far no decision had been announced. It would be fair for the Government to make an immediate statement about the election —either that an agreement had or had not been come to between the two parties. Before tho Budget took effect, the people should have tho opportunity to pronounce on it. It was not sufficient f oijthe House to pronounce upon it, as it would be dealt with, on party lines. No one could say that the Budget reflected tho policy on which its promoters had been returned to office. UPPER HOUSE APPOINTMENT. Mr. Holland went on to refer to the recent change in the Government and to the sacrifices made by members of the United Cabinet. "They have since found out," he said, "that these have been manipulated for party considerations. Anybody who looks at the appointment to tho Upper House will agree that it was purely a political party move, and that one of the most popular of the members of that House and of the United Party has been sacrificed to the political party considerations. '' Mr. Holland said the United Party •would have to accept full responsibility for ita actions, and it could not make the excuse that it was dominated by the Reform Party. There was no doubt that Cabinet was dominated by Reform. CHANGE OF OPINION. Referring to the graduated land tax, Mr. Holland said Mr. Stewart had changed his mind as to the fairness of the tax. When a party changed its mind on fundamentals, that party should go back to the electors for a mandate. Mr. Stewart had also apparently changed his mind on tho question of whether farmers should pay income tax or not. Tho removal of the graduated land tax would benefit only the large landowners. Income tax was now being placed on the small farmer, while the big farmer was being relieved 'of the graduated land tax. No farmer with £5000 taxable balance got any relief under the removal of tho graduated land tax. Mr. Holland said that in viow of the change of attitude on the part of both parties in the Coalition pact towards the promises they ha«l made to the electors, the Government should give the electors an opportunity to declare upon the policy laid down in • the Supplementary Budget before it was given effect to. LIFE OF PARLIAMENT. "I want to ask the Prime Minister this afternoon, before this discussion ends, whether he will make a frank, full, and free statement to the House regarding tho whole position, and toll the House what the Government intends to do with regard to the elections," said Mr. Holland. There was the utmost concern right throughout the country, he said, regarding the matter. Even that section of tho Press which was not in favour of an extension of the life of Parliament still insisted that a statement should be made so that the country would know where it stood. By far the larger section of the Press insisted that there should be no postponement of the elections. Tho present Parliament ended by effluxion of time on 20th November, and ho asked what was going to be done in tho meantime. There were candidates in the field getting ready for tho contest, and the political parties had a right to know whether an election was to tako place or not. Moreover, the voters, who were primarily concerned, had a Tight to know, but nobody knew at present what was going to happen except ono ■ little section of tho United and Reform Parties. He ventured to say that tho members of the Government Party did mot know. Mr. R. Semple (Labour, Wellington East): "Who are tho Government party?" Mr. Holland said it. might bo tho members of the Government party did not want to take the responsibility, but it must be upon them. The House should be informed definitely at once by the Prime Minister whether he was going, by means of tho dictatorship •which ho and his Government could exercise, to impose on the people the principles contained in the Budget, or •whether he was going to adopt, the democratic method and let the people themselves give their verdict. I ijuite appreciate the Prime Mlnaster's hesitation and reluctance to face the electors, said Mr. Holland. If I were in his position, probably I would feel the same, but there are bigger questions than political par-! ties at stake. A PARTIAL POLICY. "I don't propose to enter upon any attack upon the Supplementary Budget at this juncture," he continued. "We have only got a partial statement of tho Government's policy, and there is an indefiuitcness about several portions of the Budget. We arc told details will be furnished later, and one of the most vital portions is incomplete because of the fact that the Minister of Public Works has not yet had an opportunity of placing the Government's :jow unemployment policy before the House. When we get that we will bo in a better position to jtulgo whether it is worth while or not. I venture to judge that when U is delivered it will be found to be uuo of administration rather than legislation. The proposal to abolish the Arbitration Court will undoubtedly work against, tho interests of the vast majority of the wage work-1 r.rs.- There are other items in the Supplementary Budget of far-reaching andj

detrimental consequences, and because of that I want finally to insist that before tho House thinks of adopting tho proposal there should be an agreement to go to tho country and let the electors decide the issue." "BOXED THE COMPASS." Mr. M. J. Savage (Labour, Auckland West) said the failure of a Government speaker to follow the Leader of the Opposition was remarkable, as remarkable as the statement which they were called upon to discuss. He wanted to know why the Government had not made available to the House the evidence submitted to the Economic Committee, so that members could judge for themselves the seriousness of tho position. The failure to produce that j evidence was not fair to the House, and it was not fair to the Government. "The United Party," said Mr. Savage, "has juft about boxed tho compass. When they came into office they talked about the things that arc dealt with in this Statement, but in quite a different way. They stood by their programme for two yeaTs, and then they saw fit to join up with the Reformers. They threw over the Labour Party, and then they threw overboard some of their own Ministers, in order to make their association with Reform possible. One can look through the records of this Parliament, but ono cannot find anything to compare with what has happened. Nothing of the samo nature can be found in the political history of New Zealand, and Ministers sit down as if nothing has happened. I suppose if you have nothing to say, the best thing is to sit down." Mr Savage said thero was a time when New Zealand led the way so far as progressive legislation was concerned, but now they were told that they had to act as other parts of tho world were acting. That even meant, he supposed, that they should adopt the, same standard of living as was adopted in China and Japan and, for that matter, in some European countries. "I would like the Government to say straight out whethor they have any imagination or initiative," said Mr. Savage. "They talk about helping the farmer, and abolishing the graduated land tax. Why, tho average farmer does not pay the graduated land tax." The Minister of Agriculture (the Hon. D. Jones): "Where docs tho graduated laud tax begin?" Mr. Savage: "The land tax begins a long way ahead of the average farmer." In 1922 the Reform Party had done away with income tax for farmers,' but only a very small percentage of the farmers paid income tax. "The Government docs not appear to have a mind of its own so far as the election is concerned," said Mr. Savage. "If the present circumstances justify a Coalition and a prolongation of tho life of Parliament, then the Government should take the House into its confidence. Tho Government should let the people know at the earliest possible opportunity whether they are going to bo called upon to vote this year. Wo were led to believe that wo were going to get some indication in this Statement, but there is nothing in this Statement that calls for serious discuspion. There is not a member of this House, outside of the members of the Cabinet, who really knows what tho position is, and. I question very much whether many inside of Cabinet know what the position is. I predict that they will be at each others' throats before this is decided. If they have anything in their minds we are entitled to "have it. That is not much to ask for. I want to definitely challenge Ministers to get up and make a statement straight from the shoulder whether they will face the electors this year.'' The Minister of finance (the Hon. W. Downio Stewart): "What is your secret hope1?" (Laughter.) Mr. Savage: "My vote and my prayers will be for an election, so that the people may have an opportunity of getting even with the Government of tho Day. I will vote for an election at tho earliest possiblo moment. The Government can submit these proposals to the people. They can add something if they like, for they are mostly water. I suggest that the Government take authority for whatever Supijly is necessary, and goes to the polls immediately. They can go on Monday so far as I am concerned." "NO MANDATE FROM PEOPLE." Mr. J. M( Combs (Labour, Lyttclton) said that no Government had a mandate to repeal the graduated land tax, which had been a foremost plank of the old Liberal Party, and the repeal was being carried out by a Government under a Liberal Prime Minister. Mr. F. Langstono (Labour, Waimarino): "Is he a Liberal?" Mr. M'Combs: "Ho masquerades as one, and one must accept his own label." Mr. M'Combs said that tho Coalition had been formed to balance the Budget, but was giving away £320,000 in taxation to the wealthy land owners. Tho repeal of conipul- j sory arbitration would also be a violation of tho principles of tho old Liberal Party. A dictatorship of this nature had not been experienced in the last forty years. What Ballanue, Seddon, and Ward had fought for was now being repealed without the sanction of the people. Some of the land owners who were receiving magnificent gifts from the State were asking that the old age and soldiers' pensions should be reduced. Compulsory conciliation and voluntary arbitration meant that the employers could place certain proposals before the workers in the conciliation proceedings, and when there was a deadlock refuse to go to tho Arbitration Court. This would mean that the workers would have to accept what the employers were prepared to give them. Compulsory arbitration had been adopted in order to prevent industrial strikes and .lock-outs, and now it was proposed to take a retrograde step, which would bring about industrial friction. There was no doubt that compulsory arbitration had lessened the number of disputes, and its repeal would ho unfair to tho workers. EQUITABLE TAXATION. Tho Minister of Agriculture (tho Hon. D. Jones) commenced with the observation that the Supplementary

Budget had been received with general satisfaction throughout tho country. 'Labour laughter.)

Mr. Langstonc: "You are humor ins."

"The evidence of it, and the confidence that has been shown generally since tho Statement was made," said Mr. Jones, "justifies the Government in taking a considerable amount of credit for the Statement." He interpreted Mr. Holland's speech as meaning that he also gave the Statement strong support, for tho abolition of the graduated land tax and tho proposal relating to the Arbitration Court were apparently the only things he objected to. Mr. Holland: "I did not say so."

The Supplementary Budget, tho Minister said, was based on the principle of taxing those who were best able to bear it; income tax was probably the fairest of all taxes. The graduated land tax was not based on ability to pa3r. It did not take earnings into account. From that point of view it 'lifi'ered fundamentally from the income tax. The abolition of the graduated land tax removed a clear inequity which was in operation to-day. Another reform in the Budget which the people would recognise and value was in connection with company taxation, and he believed tho farmers would appreciate Hie consideration that had been given the stock and station agents. REDUCTION OF INTEREST. It had been said nothing had been done about interest rates, Mr. Jones continued. If the Government had •wanted to gain popularity and support it would probably have done as Australia had done and reduce all interest rates, but the result of that system in Australia had not been satisfactory in giving relief to the people who wanted it most. If the Oovemment gave a statutory reduction of interest amounting to 20 per cent, of the total it would benefit a great many people who did not require it. The great bulk of the big lenders had gone out of the mortgage business, and the State to-day held about one-third of the mortgages. Tho Government had found that many people who had lent money on farms wore in far more difficult circumstances than those to whom tho money had been lent, and they had come to the conclusion that a compulsory reduction in interest would not give the necessary benefit to the farmers in the really difficult circumstances they were facing. "A reduction of interest," he declared, "would not be as fair and equitable as the proposals outlined in the Supplementary Budget, and those proposals are going a long way to meet the troubles of the farmers to-day." CHANGE OF CONDITIONS. It was no use talking about the days of Ballance, Seddon, and Ward, Mr. Jones continued, because ■conditions had entirely changed to-day. Mr. M'Combs: "You have not got a mandate from the people on the question." Mr. Jones said that properties which were shown in the Year Book as being valued at £100,000 were probably worth not more than £20,000 to-day. Was it fair to put 8d in the £ tax on those properties? Mr. M'Combs: "They can get a revaluation." The Minister went on to say that the Government was faced with the- fact that graduated land tax on largo estates to-day simply could not be paid, and unless the owners were givcu relief it would be impossible for them to carry on their finances. In America to-day, 100 million acres of land had gone out of occupation because of the taxes and rates. Mr. E. J. Howard (Labour, Christchurch South): "There is another story to that, and you know it!" Mr. Jones: "It indicates how firstclass land is going out of occupation. ... If the Labour Party wero on these benches to-day, they would have to make some provision along similar lines to what we arc doing, and they could not avoid it. The big farmers are worse off financially to-day than the small farmers, and unless some relief is given there is going to bo a very bad position in New Zealand. The Government recognised that it had in justice to remove the graduated land tax." A Labour voice: "Why don't you consult the electors?" "Because Parliament is still sitting," Mr. Jones retorted. The members of the Labour Party, he said, reminded Mm of the advertisement of the "Pear's Soap boy who would not be -happy until he got it." If there was an election they would be angry, and if there was ndt an election they would be angrier still. It. was purely a matter of political capital. HELPING THE FARMER. Mr. Jones said that very important help was being given to the farmers in connection with the supply of fertiliser. The Government had gone seriously into tho position, ho said, recognising howimportant it was that top-dressing should be carried out and production maintained, and the result was that the price of fertiliser had been reduced to £3 17s 6d per ton on rail for 44-46 grade superphosphates. "Is it going to stay there'J" queried Mr. Savage. Mr. Jones: "Yes, it is going to stay there. That is bringing fertiliser within the reach of the farmers at an extremely low figure, and it is going to have an immense effect on production next year." He added that the reduction would obtain until next June, when tho matter would be reconsidered. The Leader of the Opposition (Mr. H. E. Holland): "Does the election take place in June, then?" Mr. Jones: "We are bound to bo hero after the election, in any case." Mr. B. Scmplc (Labour, Wellington East): "You are a wild optimist." INDEPENDENT'S OPINION. Mr. G. A. Wilkinson (Independent, Egmorit) said it did not appear to him that they had had sufficient before the House to justify a Coalition Government. He had favoured a National Government, which would have been better able to deal with the situation. Tho people of New Zealand would be very disappointed with the Government's proposals. There was no relief for the thousands of people who were staggering under high interest charges. The rates of interest should have- been reduced by Act of Parliament from one end of the country to the other. If tho people wero not relieved of tho burdens they were carrying they would break down under the load. Assistance should also have been given to those who were struggling under tho burden of high rents. Money values should bo forced down, and he would have liked t see the Coalition Government tackle the problems. Increased taxation was not the solution of the difficulty, cspe-L-inlly if it was going to mean the ruination of the taxpayers. Greater flexibility should bo given to tho State Advances Department in the matter of reducing interest rates. Mr. Wilkinson asked the reason for tho differentiation .jetwoen the cost of fertilisers in the North and South Islands. Why should the South Island merchant got 12s 6d a ton for his services, while the North Island merchant received only (is a ton for tho same service 1 Ho also wanted to know why the user of slag was not to receive tho same concession as the users of superphosphates. The farmer should not be forced to use one type of fertiliser. Mr. Wilkinson took some exception to the proposal to relievo the big land-owner of a portion of! his burden by the abolition of the graduated tax. Tlio small farmer would receive no relief from tho abolition of the; graduated land-tax. A weakness of tho taxation proposals was that a farmer's losses wero not takon into consideration if ho had a private in-