HOUSE DIVIDED

Evening Post, Volume CXXX, Issue 5, 5 July 1940, Page 4

HOUSE DIVIDED

MR.-LEE'S AMENDMENT

ONLY TWO SUPPORTERS

By 63 votes to 2 the Government disposed of tlAe challenge to its Budget proposals contained in the amendment moved on Wednesday night by Mr. J. A. Lee (."Democratic Labour, Grey Lynn). MrJ Lee's only supporter was Mr. H. Atmrnr'e (Independent, Nelson), who s%condteid the amendment, but did not speak to it.

Continuing Ms speech, which had been interrupted by the adjournment on the previous evening, Mr. Lee devoted moE.t' of his tiime to explaining his monetary theories; and again accusing the Government of orthodoxy in I finance. ?/ristead of being used for production linoney was -toeing used to squeeze the last ounpe out of existing industry. By -borrowing £20,000,000, or £30,000,000, if the-war became mpre violent, New Zealand would be building up external debts, of £300,000,000 or £400^000,000, and while not helping the Empire's war effort an intolerable' burden, was being < placed on the | Dominion, which would be placed in bondage ■ for the i uturej. New Zealand should ; only borrow fofr the purchase of munitions, in the . event of a longterm guarantee for the purchase of her produce at a price: i WAR- RESOURCES. ; The'time had arrived jfor the Empire to pool its war resources. If such an agreement were .arrived"; at New Zealand could contribute eill man-power available as long .as her own defences were not weakened. He did not want to see anything done to place the Dominion at the mercy of the overseas financiers after the war. "I want the men to return to New Zealand and enjoy a decent standard of living," he i added. He lived for the day when jthe Labour 'Government would act in [the .light of the policy placed before ! the people at the last tG-eneral Elec- | tion. ■ s j Mr. Lee said that motlierhood en- | dowment sliould commenbe with the ■first child. Married men with two children would have .co pay an increased 5 per cent. tax 4 plus about £72 income tax on a salary of £500 a year, while the single m'jan with the I same salary would pay inoome • tax of j approximately £97. No one? could coni vince "him that a married \ man could jkeep a wife ;and two -childrjen for £25. That was something that "Would have to be examined. There was po equality of .sacrifice in the proposal. \ There was no reason why the standard of living should be reduced. It wcjuld be on account of the increased costi of imports and increased taxation. . . A Mr. S. G. Holland (Opposition, Christchurch North): Redtijced quantities. Mr. Lee: Let us ration , and give everybody a fair share. j A remission of company ta:cation was advocated by Mr. Lee as a:d advance to produce additional qmintities of necessary consumer goods in New Zealand. That would make for an expansion of industry, the amount of tax being treated as a State advance.