SOUND BUDGET

Evening Star, Issue 20255, 16 August 1929, Page 6

SOUND BUDGET

INDEPENDENT CRITIC’S VIEW. FARMERS’ PRESIDENT ON LAND TAXATION [From Ock Paruauestaiiy Repchter.] WELLINGTON, August L 5. “ I should say that the Budget is that of a man with a thorough grasp of tlio country’s finances,” said the Independent member for Stratford, speaking in the House of Representai fives to-night. - “It is,” added Mr Poison, “the Budget of a man who knows what wants doing, and what he wants to do, and who proposes to-go ahead-and do it.’’ Air Poison said lie could speak not only as the representative of his electorate. but also as president of the Ke'w Zealand Farmers’ Union. Air Parry (Auckland Ccn raly; Do you speak for all the fanners? Air Poison: “ I am in the position of been recently re-elected to the presidency' of the Farmers’ Union, and 1. have been congratulated on the political opinions I hold. I have been told that I will ho of great service to the farming community in this House, but that remains to be seen. Whether I am right or wrong, 1 can speak sincerely on behalf of tho farmers of this country.” PILING UP DEBT. Comparing the last Government with the present one, Air Poison said each had increased the Public Debt. Reform had increased it from £176,000,000 to £264,000,000 in the period from 1919 to 1929. That was an increase of £88,000,000. He was inclined to agree with the member for Auckland West that there was not much difference between one Government and another when it came to piling up public expenditure. However, there was a distinct difference between the Budget of the late Alinister of Finance and that of Sir Joseph Ward. Last year’s Budget had seemed to him to be a “facing both ways” Budget iu ' that, while it contained a warning that the growth of the Public Debt was impairing the country’s credit abroad, it stated in the next breath that the Public Debt was reproductive, and there was nothing to be alarmed about. It reminded him of the hoy in the home-made pants who didn’t know whether he was coming or going. (Laughter.) Air Samuel (Thames) • I suppose that is how you feel now? (Laughter.) Air Poison ; I know the member for Thames is the licensed jester of this House, and much can be forgiven him. However, he lias often assured us that he is a member of one of the lost tribes, and as far as I am concerned my only regret is that his tribe did not remain lost.

IMPROVED BORROWING RATE. Mr Poison went on to say that if one compared the rate at which Sir Joseph Ward raised the last loan and the rate at which the ox-Finance Minister had procured his loan, it would be seen that New Zealand’s credit had improved since the new Government took office. It had been said that this was due to changed conditions and not to the change of Government. However, if one looked at the terms on > which the Commonwealth loan was raised, it would be seen that it was at a higher rate than Sir Joseph Weird's. There was a disparity between the New Zealand rate and the Australian rate, Mr Nash (Palmerston North): Hasn't that always been so? Mr Poison : It has not been so in the past, and the ex-Finance Minister made open 1 confession that London had sounded a note of warning. A SELDOM-USED WORD,

“ One thing that has struck me during this debate is that I have not hoard the word ‘ economy ’ used < by a single member of Ijds House,” said Mr Poison. “ Apparently it is forgotten, and is no longer in the lexicon of the modern politician. T disagree with the idea that unemployment would be the result of substantial economies in the Public' Service. By that Ido not suggest retrenchment, for that is a word I abhor. I da say economies could be made. Wo are getting more and more wasteful in our public expenditure. The question of economy should ho fully explored.” Mr Howard (Stratford) ; It is mentioned in the Budget. WISE COURSE ADOPTED.

When the Budget was first presented, continued Mr Poison, it was stated in the House that when the country learned the Government’s proposals on the following, morning it would be 'aflame from end to end. Next morning, however, the country was still calm. While many of the newspapers sympathised with the big landowner who was to he taxed, it was generally realised that the Budget was sound, although a few mistakes had been made. Some Reform newspapers were among those who took that line. An adjustment of taxation had long been overdue, in Mr Poison’s opinion., If the large farmer was the chief victim, he had no one to blame but the Reform Party. Por sixteen* years the Reform Party had sat still and done nothing, while the country clamoured for taxation on large estates. When Reform had the opportunity to adjust taxation it didn’t do so, though it could have done it less drastically than had been done in the present instance. _ Reform had toadied to tho vested interests in both town and country. Mr Speaker made Mr Poison withdraw the word “ toadied ” as unparliamentary. Mr Poison said juggling had gone on with the rural credit bonds, which wore State guaranteed. WHO PLANNED OUR FINANCES? Mr Poison said he did not altogether blame the Government for what had been done, because at the head of the Treasury there was an official who had assumed responsibilities which he should not have. “I hope,” said Mr Poison. “ that that official has not had a hand in drawing up this Budget for more taxation, and I tel] the Prime Minister that if such is the case he is looking for trouble.” Mr Poison, -reverting to laud settlement, said Reform *had been warned long ago what* would happen if_ something wera not done to collect income taxation from the large farmers. A Minister had stated in the House what would he the result. Reform gave no lead, and it must have anticipated the fate which overtook it.

Mr Poison concluded this portion of his speech by saying that the Budget appeared to him to be, with one execution, an attempt to spread taxation fairlv.