FINANCIAL DEBATE

Evening Star, Issue 21823, 12 September 1934, Page 14

FINANCIAL DEBATE

NO SIGN OF END A MULTIPLICITY OF TOPICS LADY MEMBER'S CONTRIBUTION (Per United Puess Association.] * WELLINGTON, September 11. • The Financial Debate was resumed when tbe House met this afternoon. , Mr D. W. Coleman (Gisborne) expressed disappointment with the reference in the Budget to railway construction. Ho said be would like to have seen the Gisborne-Napier railway completed, whereas it seemed that tbe railway was to be abandoned. He thought that if a vote could be taken most of the members of the House would vote in favour of its completion. It was a popular thine to-day to blame the Hallways Board, nut the Baihvays Board had nothing to do with the stoppage of work on that line. Just on £5,000,000 had been spent on the line, and the engineers of Hie Public Works Department stated that the completion of, the work would, cost £1,800,000. Surely the line was worth that amount. Moreover, interest had to be paid on the amount expended whether a train ran over the line or not. The line would serve 43,000 people, and 10 per cent, of the ’sheep in the dominion were in that district. If the Government had definitely decided hot to resume work on that line it should not adopt a dog-in-the-manger attitude, but should allow private enterprise to take it over. At the same time, he considered that the line should be finished ’ by the Government and not by private enterprise. Continuing, Mr Coleman said he considered that better treatment should have been meted out to the unemployed before any wage restorations were made, He criticised the Government for not making the old' age' pension increase retrospective, and also for not giving the Arbitration Court power to issue a general order increasing wages. Mr J. Linklater (Manawatu) congratulated the Minister of Finance on the optimistic and 'cheerful Budget which, he had placed before the House. It must be pleasing to all, he said, to have a balanced Budget. Every country in the world had had tremendous difficulties to face, but few had faced them as had New Zealand. The task had been unpleasant for all the members and for the Government, but the Government had stuck to its task, though it had some deserters: The high exchange rate had been of great benefit to the farmers, who had to bo assisted in some way, and that assistance had been given by the raising of the exchange. He could not understand why some members said the farmers had not received benefit from the exchange. Mr Linklater added that the establishment of a Mortgage Corporation would give investors confidence in land (investment. The corporation promised to provide ample security for land investment. Mr G. A. Wilkinson (Egmont) criticised the raising of the exchange. He said’ the high exchange was bringing about conditions that would he detrimental to all sections of the dominion. The Government, he considered, should he most careful in taxing British goods or it would create conditions that would he to the detriment of New Zealand. To-day the world had to fight for its markets, and New Zealand seemed to think that its outside markets were of little value.’ Ho went on to quote the value'' of goods sent by Britain to foreign countries, showing’ that France and the United States were relatively much better customers of Britain than Argentina, Australia, New, Zealand, and Canada were. He was not a Treetrader, and he wanted fair treatment, for the manufacturers, hut’ unless, they could reach a better balance between exports and imports than at present trouble would follow. Regarding a. Mortgage Corporation he said the State Advances Office and the present lending institutions had- treated the people very sympathetically. H a man had a case to make he could put it to the department, hut he would have no chance’ ot doing so to the corporation. In that case business would he the essence of the contract, and il a man could not pay he would be sold up. Mr E. F. Healy (Wairaii),’ after congratulating the Minister of Finance on what he termed a “ bull’s-eye Budget, turned to railway particularly’the South Island Alain Trunk. He said that part of his electorate had no chance of development while that railroad was at a standstill. He wondered what the Railways Board could manage.. Jt could not manage even a Saw-mill,and it should not .be-left to the board to say whether the railway should be proceeded with or not. It would be in the interests’of the country to complete both the. South Island Alain Trunk and Hie Gisborne-Napier line. ,Ho hoped that if a reasonable proposition were put to the Government hy private enterprise to take over the Cliristchurch-Picton line it would not stand in the way. In conclusion, Air Healy appealed to the Alinistter of Lands and the Government to consider ways of placing unemployed men in the South Island on small fa Mrs M’Gombs (Lyttelton) said, the most pressing problem in the dominion at the present time was unemployment. She could not help thinking that when the Government drew up its plans tor the year it had not thought of the unemployed. The decrease in the unemployment figures shown was a very small decrease in the past year, despite •Hie extra money circulated through tho sale of wool. 'live people did riot want a reduction in unemployment taxation while unemployment continued. She contended that a reduction should not have been made. The unemployed ivyio in a desperate plight and were living in misery often with the bailiff under the same roof. Surely if there seemed to' bo a turn in the tide of the Government’s finances something should have been done for those people. She quoted the Health Departments report mating to the malnutrition of children and also to. tho crowded conditions under which people were living. Many young children were compelled to help to augment the family income by assisting on milk rounds, deliyeiing newspapers, or selling lollies in picture shows. The department also thanked those who bad organised health camps in order to prevent malnutrition among children. Was that an indication of the unemployed being paid a sufficientwage? The whole thing was an indictment on the Government’s policy. The statement that it would not do to make relief work too attractive was an insult to the workers of the dominion. Airs 'Sl‘Combs expressed astonishment that, considering all the appeals that had been made by business men am] others, the Government had done nothing for unemployed boys. The Government did not seem to have sufficient imagination to realise that boys and cirls were the best as.scl the dominion liad The Allnister of Education ami i lie Government refused to do anything ■for jhe boys, but in-New Soulji Wales

the Government had taken the matter in hand and-had established seven vocational schools. Even more was being done in England. The Government continued to collect an increasing sunlit must be over £1,000,000' annually—• from women, yet it ,Was putting unemployed women and girls off with only a few pounds. It was time the Government did something adequate for -these women and girls. Teachers had suffered more severely than any other part of the Government service through the reduction of’ salaries and the disorganisation of their..work,- and the fact that a teacher had to shift to gam promotion meant continual unrest in the profession. Airs APCombs pleaded with the Government to do something for tbe returned soldiers who had suffered as the result of their war service but who were unable to prove that their present condition was due to then war service. Air W. P. Endean (Parnell) defended tbe increase in the defence vote. lu the last war, bo said, New Zealand was defended from the North Sea, If war broke out in the Pacific he supposed she would bp defended from somewhere in the vicinity, of Singapore.' He did not think the raising of the exchange was contrary to the spirit of Hie Ottawa agreement, bis understanding being that that question was left open to each dominion, to decide for itself. He considered that with the price ol gold at about £7 it would pay the Government to enedurage that industry and relax the restrictions as much as possible. The tourist industry was another thing that should be given every encouragement. He thought the Alortgago Corporation scheme should be given close consideration. He hoped that the Government would give an assurance that there would be no more interference with respect to mortgagors relief, so that the private investor could take part in lending on land. He thought the old-age pension restoration should have been mad© retrospective. He considered that instead of restoring the wages cut to Civil servants Hie’ Government should have reduced the taxation under whiclvthe whole country was staggering and taken a big slice off the unemployment tax. Air Endean expressed the view that the Government should bring down legislation to give it power to deal with university professors who made remarks such as those made in Auckland recently. ’ , : Air R. At‘Keen (Wellington South) said that members on the Government side bad evidently been .vicing with each other to find suitable words in which to praise the;Budget, but he compared it with Coloinbus, who, when he set out, did not know where he was going, and when he got there he. did not know, where, he. was and when he ; got back_ did not know where he had been.. Touchincr on the question •of ■ the-freedom -of speech, Mr APKeen said the Auckland professors desired only to educate the people of New Zealand. What they said after , their day’s work was done had nothing to-do with tbe Government. He asked the Government to do : something to improve • the apprenticeship position. The housing-problem;was also one that should be tackled. There was a definite shortage of houses, and,two or three families were compelled to live in one house because they could not pay rent. He said the sales tax was most inequitable and unjust, and those who were paying it were persons with small wages. He thought this tax should haye been removed. He contended that the Budget should have shpwn a deficit of £2,967,000. In addition, the national debt was piling up year by year. Wlven the United Party took office the national debt was £251,000,000. Jt had increased by £16,000,1)00 under the United Government, and £17,000.000 under the Coalition Government. , ■ •. The Minister of Justice (Mr Cobbe) said that courageous administration had produced the present satisfactory Budget. The Government was -satis--i mat a’Mortgage Corporation would have a beneficial effect 1 , especially on those who produced the real wealth of the country. The secondary industries could be successful only as far as they could supply local needs; it was to the primary’ producers that the dominion must look. The high exchange had been of great benefit to the farmers. He doubted if any Act passed in recent years had been'of greater benefit than Hie Mortgagors and Tenants Relief Act. There was a steadily-increasing tendency to settle matters privately, but many questions were left to the com missions, showing the confidence placed in flic commissions. Had it’ not been for tho Act he shuddered to think what would have happened to the farmers of the dominion. , ~ The debate was interrupted by me rising of the House at midnight.