DAY IN PARLIAMENT

Evening Star, Issue 23335, 3 August 1939, Page 6

DAY IN PARLIAMENT

Financial Debate Opens ILLNESS OF THE PREMIER Social Security Estimates Explained The debate on the Financial Statement, introduced by Mr Savage on Tuesday night, was opened in the House of Representatives by Mr Hamilton last night. The Leader of the Opposition was more vigorous than usual in attacking the Government, particularly on its financial policy, and, in a speech lasting an hour and a-half, drove home his accusation that the Government had betrayed the electors by breaking all promises made during the election campaigns of 1935 and 1938. He urged the Government to take a courageous stand to re-establish sound economy and stem the present drift towards financial disaster. Mr Hamilton, who has shown a-flair for description on many occasions, characterised the Budget as one of “ breach of promise and contradictions.” Mr Sullivan was, chosen to reply. He laid great stress on the Government’s claim that a majority of the people of the Dominion were in much better position to-day than ever before the depression. Mr Sullivan did not venture outside the lines of debate which halve been heard from Government speakers since the accession of the Labour Government four years ago, but his explanation of the Social Security commitments clarified a position that was not easily recognised in the Budget and the Estimates. The afternoon sitting was devoted to formal business and the discussion of Ministerial answers to questions.

SYMPATHY WITH MR SAVAGE [l'm United Press Association;] . WELLINGTON, August 2. When the House met at 2.30 p.m. the deputy leader, Mr Fraser, said he regretted to inform members that the Prime Minister, Mr Savage, acting under medical advice, was obliged to enter a hospital to-morrow to undergo an operation' This,'of course, would necessitate a period of treatment and convalescence. Mr Fraser said he knew

tbe announcement would be received with feelings of sympathy and regret by all members of the House and by the people of the country, and he felt sure everybody would wish tho Prime Minister a speedy recovery, enabling him to resume his administrative duties at an early date. “ I wish to say,” added Mr Fraser, “ that I am familiar with the condition of the Prime Minister during the last fortnight. I know how he has struggled on against odds to discharge the high and responsible duties of his office, and how he has been compelled, under medical advice, to relinquish his post temporarily.

THE BUDGET DEBATE

After a period of sickness, and with the knowledge of the imminent necessity for an operation, he considered it his duty to come to the House last evening and personally present the Budget. With full knowledge of the circumstances I can only express my sincere admiration for tlie man, who, from a high sense of public duty, of what ho owed the country at such a critical period, sot aside his own personal convenience, comfort, and safety.”

The Leader of the Opposition, Mr Hamilton, said the Opposition learned with sincere regret of Mr Savage’s inlisposition, and desired to join with all members of the House in expressing sympathy with him. He hoped that the Prime Minister’s indisposition would bo only a temporary one, and that he would experience a speedy recovery. Ho asked Mr Fraser to convey to Mr Savage the Opposition’s sympathy and hope that he would soon be back in the House. Mr Munrn gave notice to introduce the Otago Harbour Board Empowering BUI ANSWERS TO QUESTIONS. The House then proceeded to consirler Ministerial replies to questions asked during the session. In a written reply to a question by Mr .lull, who asked whether his attention had been drawn to a letter published in a Wellington paper, signed by Arthur Cook, a member of the Royal Commission considering the sheep farming industry, criticising the Farmers’ Union, Mr Savage replied that he understood Mr Cook, in his as general secretary of the New Zealand Workers’ Union, replied to statements made at a conference of the New Zealand Farmers’ Union by Mr Mnlholland. Mr Cook regarded these statements as an attack on the workers’ union It was not considered that his action in defending the union had rendered him in anv wav unfit to ho a member of the Royal Commission mentioned. The House discussed ouestion.s and departmental reports for the remainder of the afternoon, and adjourned at 5.30 p.m. till 7 30 p.m. to-night.

Tlie House was only reasonably well filled at 7.30 to-night for the commencement of the Budget debate. The Leader of the Opposition, Mr Hamilton, before beginning his criticism of the Budget, reiterated his regret at the Prime Minister’s illness and hope for his speedy recovery. He explained that anything he might say in the course of his address, and any criticism of the Prime Minister was in no way personal. As public men the Opposition had to discuss questions of public policy, and it was criticism of such policy only that was intended. Personally, he entertained a very high regard for Mr Savage. [Mr Hamilton proceeded to discuss the Budget. Much of his criticism is reported elsewhere under the heading “ I Accuse.”] Not only was the Budget a breach of promise, Mr Hamilton said, but it was full of contradictions. Its taxation proposals were a direct blow at the standard of living of the typical New Zealand family.

Mr Hamilton went on to criticise Public Works expenditure, which had not been tapered off. The whole construction of the new taxation burdens, he said, discouraged the producer and the thrifty" and those with an incentive, and enterprise- in particular. It was another, direct Mow at the costs of the primary producer, who had been singled out for further increased costs. Proceeding with his examination of Labour rule over the last four years, Mr Hamilton contended that the Government had increased the cast of Tunning the country by 70 per cent. Deal in c; with British foreign policy, he said the members of the Government, and some of the Cabinet Ministers, had recently developed a habit of severely attacking the decisions of British statesmen, especially the Prime Minister (Mr Chamberlain). Although they gave lip service to the advocacy of peace in preference to war, on two occasions when Britain’s foreign policy got Britain out of very awkward and dangerous situations, the Labour Party never ceased to join in the attack.

Although the Labour Government was very touchy about other people criticising its decisions, it was ever ready_ to attack the decisions of its superiors, who (knew all the circumstances which led to the British Tokio decision. He asked what was the alternative to such a decision? It was a mighty risk of war. It appeared to him bordering on presumption to attack the actions and decisions of Britain’s leading statesmen, especially while those attacking it were not doing a tithe to strengthen the Empire against foreign dangers, but were on the contrary seeking financial aid from Britain. The Minister of Public Works (Mr Semple) : Would you suggest that British statesmen are infallible? Mr Hamilton; No, neither is the honourable gentleman, but the British statesmen know all the facts of the case. SIGNS OF STRESS. Mr Hamilton criticised the Government’s housing policy, contending that, there had .been a rise in rentals of 33 I*3 per cent., and went on with tho major financial alterations which occurred between March 31, 1938, and a similar date this year. During that period, he said, the Reserve Bank overdraft increased over £14,000,000; note issue increased £1,780,000, the Post Office deposits decreased over £2,000,000. London funds dropped £17,000,000, local bodies’ interest rates increased three-quarters per cent., the dairy account showed a net loss of £1,440,000, the national debt increased £13,768,930, unemployment expenditure increased over 50 per cent., and borrowing increased £9,294,089. Besides that, there had been a flight of capital of, say, £10,000,000. Speaking of the guaranteed price, Mr Hamilton said the deficit in the dairy account for the year just closed was generally estimated at £2,000,000. The Government had promised the dairy farmers a standard of living comparable with other sections of the community, and the dairy farmers would insist on this being carried out. MONEY NOT BLACK. An attempt was being made to run a campaign depicting money as a black and evil thing, but an attack on money was an attack on those with small savings, as well us large savings. Tho source of money, he continued, was production, and the Government up to March had taken £14,000,000 out of the Reserve Bank without any backing of production. Capital could not do without labour, and vice versa. The group which suffered most in Now Zealand was composed of people with small or medium fixed incomes. Every time a member of tho House attacked the money system, he attacked the people their families, and their homes.

Referring to social security, Mr Hamilton said £2,000,000 less benefits than had been promised had been paid by the Government. The taxation, continued, but no benefits were given. With regard to the sickness benefit, the means test was the meanest of all. One who wanted to get the sickness benefit had to get up very early in the morning.

BURDEN OF EXPORT WEALTH. The terms of the Minister of Finance’s arrangements at Home, said Mr Hamilton, dealing with the Dominion’s oversea finances, imposed a terrific binden on the country’s export wealth, although certain conversions later might case matters. The British Government, he thought, had treated New Zealand very generously. In conclusion Mr Hamilton spoke of the petrol tax, stating that its imposition was a blow at production, and particularly primary production. He added that he' had received telegrams of protest from all over New Zealand. New Zealand’s progress, he said, depended on the united effort of industry, commerce, agriculture, and labour in cooperation. This was tho course that the Government should steer. THE DEFENCE.

The Minister of Industries and Commerce. Mr Sullivan, defended the Government’s programme and Budget proposals, and answered many points of criticism raised by Mr Hamilton. Mr Sullivan said he had that evening met a representative group of Dominion manufacturers, whom, he asserted. ho found more hopeful and enthusiastic over New Zealand’s manufacturing industries than ever before. This happy and hopeful attitude in regard to the future was also shared by the great majority of retailers and other business people generally. Balance sheets were the most convincing arguments, and these showed an improved position. Tho Minister proceeded to refute Mr Hamilton’s statement that the new taxation would constitute a load on the average family. With the exemptions, ho said, the average family man would not he affected by the higher income tax and death duties, nor would his standard of comfort be lowered.

PUBLIC WORKS FOR DEF.ENCE. Answering the Leader of the Opposition’s contention that there was no reduction in Public Works expenditure, the Minister said that if tho expenditure for defence purposes were deducted 1 , it would be found that the Budget Estimate for Public Works would approximately he at the same figure as before. The Government, the Minister continued, had not broken its promises in respect to making the medical benefits available, and the scheme would ho put into operation as soon as the doctors were ready to cooperate fully. OVERSEAS COMMITMENTS. The Minister proceeded to’ reply to Air Hamilton’s criticism of Mr Nash’s London negotiations. Under these negotiations, he said, the loan of £17.000.000 would finally disappear. Mr Hamilton: Impossible.

Mr Sullivan proceeded to quote British Press opinions praising Mr Nash’s negotiations in London, and he stressed the fact that one of the difficulties with which New Zealand was faced was the large number of overseas commitments which matured all about the same time. He thought the Minister of Finance could! be heartily congratulated on his London arrangements. Mr Hamilton, Mr Sullivan continued, had referred to the criticism which had been of British statesmen. “ Is he then laying down the dictum that there must be no criticism in this country of foreign affairs? ” asked! Mr Sullivan. New Zealand, he continued, was very deeply interested indeed in Britain and the Empire, and he continued! that ever since it had assumed office the New Zealand Government’s relationships with the British Government had been of a most friendly character. New Zealand had not hesitated! to express its honest opinions if thev.were asked for, he added, but for Mr Hamilton to say that none should differ from the British statesmen was carrying things too far, and' was reminiscent of the totalitarian States. TRADESMEN ON PUBLIC WORKS. Regarding the Leader of the Opposition’s criticism of the Government’s housing policy, the Minister continued that his Government had set out to build the people good houses. The National Party, having regard to its own history as far as housing was concerned, should! hesitate in referring to a housing shortage. The housing position bad been accentuated enormously by the policy which the Nationalists themselves had pursued. Mr Hamilton had also drawn on his imagination in stating that a number of skilled tradesmen were to be found! in tho employment camps and on public works. Frequently, said Mr Sullivan, lie had asked the Minister of Public Works to investigate the matter, and although inquiries had resulted in some qualified tradesmen being secured, the number was not large. Under the National Government’s policy qualified men had been turned! out of their jobs on to sustenance, and then finally had gravitated to public works. Some of these men were loth to return to factories after an absence of seven or eight years, because they felt they had! lost a large part of their skill at their trades. The Government had, nevertheless, brought back a number of men to industry, and not only that, but had also secured the services of a number of young men who had never been in industry before. In the latter connection, the Minister of Labour’s scheme for adult apprenticeship had met with very great success. Mr Hamilton had also spoken of low interest rates under the National Administration, said Mr Sullivan, but he would point out that everything else had! been low during that period, including the standard of living of the people. The Leader of the Opposition was also very difficult to please regarding the guaranteed price, and it seemed quite impossible to satisfy him so long as tho Dairy Industry Account remained. THE .EXTRAVAGANCE CHARGES. Dealing with charges of extravagance, the Minister said the Government, which was the trustee for the people, was fulfilling its mandate to abolish poverty and provide by constitutional steps more equitable distribution of wealth. Of a total of £37,000,000 received) last year in various forms of taxation, including the employment promotion lew, tho Government had returned £20,000,000 to the people in various social services. The Minister declared that tho increased cost of living had been more than offset by tho increased wages rates, and quoted figures in support of this statement. SOCIAL SECURITY ANALYSIS. Mr Sullivan proceeded to outline the estimates of receipts and expenditure of the Social Security Fund for the current year. The aggregate estimated receipts from all sources, ho said, were £12.003,125. and this was squared by a con espondh.gestimated outlay on l.p'iiofi is directly interchnrgcable to tho

fund. Details of the receipts were as follows:—Registration fee, £630,000; tax on wages and salaries, £5,550,000; charges on other income, £3,050,000; penalties and fines, £20,000; miscellaneous. £4,125; subsidy from Consolidated Fund, £2,000,000; transfer of Budget surplus from last year, £809,000; total, £12,063,125. The expenditure was;— Age benefits, £6,910,000; family allowances, £700,000: invalid benefits, £1,050,000; Maori war pensions, £1,500; miners’ pensions, £99,000; orphans’ pensions, £30,000; widows’ pensions, £1,010,000; unemployment and sickness benefits, £50,000; maternity benefits, £306,500; hospital benefits, £738,400; medical benefits, £100,000; pharmaceutical benefits, £50.000: emergency benefits, £100,000; administrative charges, £516,025. From the above aggregate had to be deducted £56,300 credits-in-aid, bringing the total to £12,063,125. Mr Sullivan, in conclusion, referred to the subsidised wheat position in New Zealand, saying that no section of industry in Canterbury wished the present policy to be altered. The increased taxation, he said, was being distributed back to the community in the form of pensions and social services, and was going to the people who most needed and deserved it. The House rose at 10.30 p.ni.