PARLIAMENT

Evening Star, Issue 22772, 6 October 1937, Page 15

PARLIAMENT

HOUSE OF REPRESENTATIVES BUDGET DEBATE RESUMED [Pas United Press Association.] WELLINGTON, October 5. The House met at 2.30 p.m. Mr Poison gave notice to ask the ] Piriine Minister if he was aware that one of the oldest British insurance companies operating in the Dominion was refusing to accept farmers’ insurance in view of the increased costs of the Government’s legislation. An urgent question was asked by Mr Hargest, who drew the Prime Minister’s attention to the serious complications which might arise from the watersidors refusing to load cargoes for Japan. . - Mr Savage, in reply, stated that the Government was fully aware of the serious complications which might arise, and had taken a serious view of the matter, as indicated by a recent Press statement. Immediate contact had been made with' the parties concerned, with'the result that cargo for Japan was being worked in the usual way. The Government had provided by Order in Council for the prohibition of the export of scrap metal not only to Japan, but to any other country. Mr Smith asked .the Prime Minister an urgent question, if he would lay on the table of the House a copy of the statement issued by his office and broadcast from 2YA onSaturday, such statement purporting, to be a review of the presentation of the Budget and the debate which followed,; Mr Savage, replying, stated that the broadcast was the usual news bulletin comprising mainly a review of proceedings in Parliament, It consisted of about 1,000 words, and.the honourable gentleman could read his own (Mr Savage’s) copy any time he liked as long as he returned it afterwards. Mr Savage added that he did not see the necessity for the bulletin being laid on the table of the House. The following were granted leave of absence—Mr Wilson, 10 days; Mr Tau Henare, eight days; Mr Rushworth, four days. The House continued with the Budget debate. Mr Holyoake stated that no thought for tho future was contained in the Budget, and the restoration of the wages of public servants had been completely cancelled out by the increased cost of living. In fact, they were very much worse off to-day than they had been in the past. He criticised the Government for the creation of four new departments and the employment of 5,000 additional Government servants. Taxation, he said, could not bring prosperity to any country, and he contended that this Dominion was being taxed up to the full capacity of the people to pay. Past Governments had been criticised by Labour for indirect taxation, but he drew attention to the fact that the present Budget showed an increase of over three millions in Customs duties. What was that but indirect taxation ? . When Mr Holyoake’s time limit was approaching, Mr Sexton moved that his time be extended, but Mr M’Dougall objected, and Mr Holyoake was required to cohclude in the allotted time. He was ■ thanking ■ Mr Sexton for his motion when Mr M'Dougall interjected “ he was only joking.” . Mr Holyoake replied: I think it beneath the dignity of most members of this House to refer to tho actions of the member for Mataura. t * Mr Cotterill said the Government agreed with the Opposition that the sales tax was indefensible, and there were lots of things in connection with taxation with which the Government did not agree. However, they would be dealt with when the time arrived to do so. Every member of the Opposition had critised the Government’s taxation measures, but the Opposition had been asked what taxation measures they would eliminate, and the Government was still awaiting the answer to that question. The Opposition wanted to reduce the taxation yield and lay aside something for the future, but it also wanted to maintain the social services and the Civil servants’ wages at the same level as to-day. He contended that there was a clear-cut issue to-day between the Government’s progressive policy and _ the reactionary policy of the Opposition. Mr Sexton said it seemed to him that the only criticism which could be levelled at the Budget was that it was on orthodox lines. He urged ■ the elimination of the sales tax, and asked why the Government did not draw credits from the Reserve Bank to balance funds lost through the withdrawal of such tax. A considerable amount had been drawn from the Reserve Bank for the dairy industry account, and no wild inflation had occurred, so why not take sufficient funds from the Reserve Bank to offset the removal of the sales tax? He deprecated the lack in tho Budget of further provisions for children’s allowances, and stated that the people were becoming alarmed at the fall in the birth rate. If we did not face the position and make adequate provision for people to rear families we would soon find ourselves with a rapidly decreasing population. Mr Sexton also contended that the guaranteed price had not placed the farmer on the same basis as those engaged in other industries to-day. He said the daily farmer was on piecework for the Government. This was opposed to the Labour policy, as they did not favour piecework. The House adjourned at 5.15 p.m.