BUDGET DEBATE

Evening Post, Volume CXXIV, Issue 86, 8 October 1937, Page 6

BUDGET DEBATE

FINANCIAL POLICY OPPOSITION CRITICS POSITION OF BANKS Many subjects that have already been discussed were traversed again when the Financial debate was continued in the House of Representatives yesterday, and the galleries commenced emptying fairly early in the evening. Opposition members again attacked the Government's financial policy and mention was made of the hints that have been made regarding the banking system of the country, several speakers expressing concern at the attitude of Government members towards the banks. Government members on the other hand defended the taxation proposals and said that the Government's policy, instead of hampering industry as had been claimed, had led to the absorption of thousands of workers in secondary industries and in the shops distributing the goods produced.

The Hon. Sir Alfred Ransom (National, Pahiatua) said that the statement had been made that the Labour Government had come into office after 100 years of misrule. What a reflection that was on those who had developed the Dominion! Every New Zealander could be proud of the great work that had been done in the past. Anybody would think that there had never been misrule under a Labour Government, but it was only necessary to remember the regime of the Lang Administration in New South j Wales to refute any such assertion.

Sir Alfred said he wondered what was meant by the claim that in the past New Zealand had been controlled by Governments that did not understand the science of government. "Does that mean a policy of extracting the utmost possible from one section of the community so that money might be made available to another favoured section?" he asked. "Is that the science of government?" A Government member: That is what your Government did. Sir Alfred: Or does it mean blinding the country with the science of government which they say the past Government did not understand? Thank God they did not! LAND SETTLEMENT? Not once in his speech had the Minister of Lands referred to the Government's land settlement policy, said Sir Alfred. "Have they got one?" he asked. "Silence reigns supreme. It was announced that the policy had to wnit until the return of the Minister of Marketing from abroad, but the Minister has returned and presented his Budget, and there is not one word there to indicate that there is any land settlement policy. Is it to be held over as a special inducement at the next General Election, when the Government may put out an attractive land Settlement policy which may or may not be honoured?" NATIONAL INDEBTEDNESS.

The member for Kaiapol (Mr. C. M. Williams) had made much of the statement that the Government had reduced its overseas indebtedness by a considerable amount, but he could not get away from the fact that the National Debt had increased by £5,000,000 over last year. Mr. H. M. Christie (Government, Waipawa): What about the assets? There were certainly tangible assets

to show for the increase, replied Sir Alfred, but so there should be. Any Government that could not show Increased assets in such circumstances would not be worthy to remain on the Treasury benches another day, but there was a discrepancy between the increase in the National Debt and the fresh assets. With prudent management it should not have been necessary to increase the National Debt by even a penny.

Referring to unemployment relief, Sir Alfred said that the money would have been better spent in developing waste lands and increasing production to supply the Dominion's expanding markets overseas. ,He would not criticise the expenditure incurred in the trip made by the Minister of Marketing. The money would have been well spent if the results accrued that were hoped for, and if they were not forthcoming they knew that the Minister had done his best. FARMING AND HOURS. Referring to the Government's interference with private enterprise, Mr. C. A. Wilkinson (National, Egmont) said that if the business of fanning were taken over by the Government, it could not exist for a month on, the 40-hour week principle. The present Labour Government had confessed its utter inability to run one of its own great departments to the 40-hour week principle. He referred to the Police , Department, which was one of the departments that would be called on to enforce the law on those who broke the 40-hour week rule. Though 125 extra men were employed, the Government had not been able to reduce the hours to less than 48. Previously they worked 56. • If it was sound policy for the manufacturers to work forty hours, surely it was sound policy for the Police Department. The police were getting 15s a week extra for the additional hours. Mr. A. F. Moncur (Government, Rotorua): They are satisfied. Mr. Wilkinson: I wonder if they are. ' The Government should set an ex- : ample. The police are entitled to the ' same treatment as public works em- 1 ployees. The Government was incon- 1 sistent. i

A Government member: What did your Government do?

Mr. Wilkinson: I never had a Government.

Mr. J. A. Lee (Grey Lynn): The hon. member is a political Irishman— always agin the Government.

Mr. Wilkinson: I will be agin the Government when it is wrong. Mr. Lee: Until they make you the leader. (Government laughter.) Mr. Wilkinson criticised the high taxation. "In not reducing taxation," he declared, "the Government has taken a gambler's risk. It has levied taxation with the idea that prosperity will last for all time, and we are living up to the full extent of our income. It is dangerous. There is no indication that the Government proposes to reduce taxation at any time; from speeches that have been made by Government members it may be understood that taxation may be increased instead of being decreased. In not reducing taxation, the Government has shown an incurable bias against the people who have built up the Dominion." UNEMPLOYMENT FLOURISHING. Touching on unemployment, Mr. Wilkinson said that instead of the back of the problem being broken, the problem was flourishing. The seven thousand men who had been given work for four months at £4 a week would mean a bill of £448,000. Those men had been taken off sustenance, and they would go back when the work was finished. The money was being scattered about willy-nilly. Before

these men were taken oft there wer> 22,000 men on sustenance, and th< number was growing. The Minister of Mines (the Hon. F C. Webb): The local bodies in Elthan refused my offer to place men at £<! Mr. Wilkinson: If they refused tha gift, then the gift cannot be wortl very much. Mr. H. G. Dickie (National, Patea) It is not in the hon. member's district I will take the blame. Referring to public works, Mr. Wil kinson said that when it came t( spending £17,000,000, there should b< a Parliamentary Committee set up t( consider it. At present, Parliamen had no say. It just voted the money FARMERS' WORKING WEEK. Mr. W. T. Anderton (Government •Eden) said that he had travellec I through the country and had met i number of farmers who had institutec the 40-hour week. Tin 40-hour weefc | was possible in any rationalised industry. The police had been mentioned and it had to be admitted that the police were working a 48-hour week, but that did not mean that the Government did not envisage a 40-hour week for the police. All that was needed was more police, but they could not be trained in a day.

The Government had been called spendthrift because it was not putting anything away for a rainy day, Mr.

A.nderton said, but what had the previous Government put away? When the slump came the cupboard was bare because all that had been put away had been given to its friends. The ten years before the slump had been prosperous, but nothing had been put away and the workers' standard of living had not been improved.

Referring to broadcasting, Mr. Anderton iaid both the national and commercial stations were a credit to the Minister in Charge of Broadcasting. Broadcasting was criticised because it was such a valuable service.

The Industries and Commerce Bureau in the last eighteen months had done a tremendous amount of work, he said. New Zealand had to look to secondary industries to absorb workers into employment. Thousands had already been absorbed into secondary industries, and shop staffs had been increased to distribute the goods produced.

The Opposition complained about | the Government's taxation, but . how I would it have accepted a Budget abol- ; ishing all taxation? he asked. Taxa- ; tion could only be abolished if the : money was provided by the State, but [ Opposition members were opposed to 1 that. They preferred to borrow money from the bankers so that interest ' would have to be paid. It was no use producing goods unless they could be consumed, Mr. Anderton said: Goods could not be saved; they were produced to be consumed and it was the duty of the Government to see that the people had a purchasing power that would enable them to consume what they needed. The Hon. J. G. Cobbe (National, Oroua) said that previous Governments had saved money, and reserves amounting to £17,000.000 had been used after the war. Mr. J. O'Brien (Government, Westland): Accumulated surpluses. (Government laughter.) NOT A LAUGHING MATTER. The Budget was no laughing matter, Mr. Cobbe continued, because the taxpayers would luve to bear the burden. Much that was likely to be harmful to the people of the Dominion was hidden in a mass of words in the Budget, Mr. Cobbe continued. There were many members of the community who had not yet recovered from the effects of the depression years, yet taxation was being increased. Mr. Cobbe charged the Government with a predilection for taking credit for legislation that had already been enacted by the past Government. He ; described the system of dairy produce ; marketing under guaranteed prices as a commandeer. So far as taxation was \ concerned it was the young people i growing up who would have to bear the burden ultimately The taxation position was simply appalling, and s he asked where the Government's ' reckless spending would end. The de- { clared intention of the Prime Minister to use the public credit was only another name for inflation, an extremely i dangerous policy for a young, country c like New Zealand. £

The debate was adjourned at 10.30 p.m. until 10.30 a.m. today.