BUDGET DEBATE

Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 10

BUDGET DEBATE

FARMING COSTS

PUBLIC WORKS

ROADS AND DEFENCE

When the Budget debate j\vas resumed in the House of Representatives this morning reference was again made to Public Works expenditure. The excuse was being made, it was stated, that much of the. Public Works programme was due lo defence needs, but that was not substantiated by ihe way roads were being built. Continuing his speech, which was interrupted by the adjournment last night, Mr. E. P. Meachen (Government, Marlborough) claimed that-the definite policy of the Opposition was the reduction of purchasing power. The people were confronted with two distinct issues: either the present high standard j of living afforded by the Labour Gov-1 ernment was to be maintained or there was to be a reversion to the conditions that prevailed a few years ago. He would warn the business people of New Zealand that even a temporary reduction in wages and salaries would have a very serious effect on their operations. The level of farming costs was frequently criticised by the Opposition, said Mr. Meachen. He had the balancesheets of dairy companies operating in his electorate and all of them were more or less eulogistic of the guaranteed price scheme. No mention was ever made by the Opposition of the huge mortgage indebtedness of the farmers of New Zealand. The Opposition should face up to the real facts surrounding the farmers' difficulties, some of which had been brought about by the farmers themselves. MINISTER COMMENDED. Commendation of the efforts made by the Minister of Transport (the Hon. R. Semple) to reduce the toll of ! human lives on the highways was voiced, by Mr. J. A. McL. Roy (National. Clutha). That work had the endorsement of every member of the Opposition and of every sane-thinking person in the country. His own view was that the casualty rate on the highways would not be reduced very much until the engines of high-speed cars were governed to prevent excessive ! speeds. He knew that the proposal I would not be popular, but the fact remained that even with the best of cars and drivers, something unforeseen was j always likely to happen. Mr. Roy said that he considered the [sealing of some roads should have : been widened by another four feet as it was not easy to pass wide lorries ion the present width. He also sugrgested lighting wide trucks at either side to increase road safety at night. Referring to defence, Mr. Roy said jhe did not agree that most of the extra I taxation would go to defence. The most of it would be spent on Public Works. He agreed that aerodromes j and certain roads were necessary in the defence scheme, but he did not agree that the roads generally and th>j railways were for the defence of New Zealand. In the south the road between Christenurch and Timaru had been shortened by shifting it alongside the railway and that was not right for defence purposes. To" say that the roads and railways of New Zealand were being constructed for defence was merely "eye wash." Mr. C. Carr (Government, Timaru): There is nothing in the hon. gentleman's argument about Timaru-Christ-church. Mr. Roy said that he considered the amount spent on equipment for Public Works was out of proportion to the men engaged. When sj much machinery was used there should not be any necessity for so many men. RURAL POPULATION. As the Prime Minister had said, increased population was the best defence of .'the country, but the rural population was declining. The Government should make more money available for the settlement of farmers' sons on the land and fill up the empty spaces. Only the fringe of intensive farming had been touched and there were many areas where hundreds of families could be settled. The increased taxes would have an adverse effect on the farming community, Mr. Roy said. When taxes began to bear too heavily on incomes there was always a tendency for the taxpayer to ease up to avoid taxation. The petrol tax would bear heavily on many farmers because they had "switched over" to tractors. CIVIL SERVICE RIGHTS. Mr. R. M. Macfarlane (Government, Christchurch South) said it was remarkable to see the sympathy displayed by members of the Opposition towards the civil servants. Today Civil Service organisations had the right to make representations to the Government and to mem.be.rs of Parliament, and also the right to indulge in criticism if they wanted. Nothing the Opposition could do to woo the support of the civil servants would be successful. There had been considerable criticism of the Budget outside the House. It was only to be expected. It would be a strange Labour Budget indeed that had the approval of the newspapers and the Associated Chambers of Commerce. The Leader of the Opposition had contended that it was bordering on ■presumption for members of the Government to attack Britain's foreign policy. They knew that there were very grave doubts at Home about the British foreign policy, even among the British Conservative Party, and members were entitled to criticise. Mr. Macfarlane said it was essential that the Dominion should pursue a progressive public works policy. As an indication of what had been done by the Labour Government in the way of public works since it came into power, he said that 200 miles of railways had been placed under construction, seventy miles completed, nine miles of tunnels, and 16£ miles of bridges had been constructed, 2980 miles of roads had been formed and reconstructed, 1050 miles sealed, and 3000 miles had been metalled. Mr. Macfarlane contended that the Labour Government had been too trusting of the financial interests. They had learned something about the] patriotism of those who had taken] their money out of New Zealand. Some of those who took it to Australia mighi be glad to get it back here again. Mr. S. G. Holland (National, Christchurch North)? What do you mean? Mr. Macfarlane: The political situation in Australia is very uncertain, and there might be a Federal election, which might bring about a change. When prices began to rise because of increased taxation, said Mr. T. L. Macdonald (National, Mat-aura), the man in the street would begin to criticise the Government. Had the Government anticipated criticism from that quarter? 'Discussing defence, Mr. Macdonald said the Opposition was emphatically in support of the Territorial movement, but it did not think it went far enough. Most of the Opposition members who were eligible were members

of the National Military Reserve, and a number had done all they could to help the defence forces.

The debate was interrupted by the luncheon adjournment at 1 p.m.