PARLIAMENT

Greymouth Evening Star, 10 November 1931, Page 2

PARLIAMENT

FINANCE BILL DEBATE. [FEB PBEBB ASSOCIATION.] WELLINGTON, November 9. The House of Representatives met at 2.30 p.m. The New Lynn Sewerage Validation Bill was reported from the Local Bills Committee. In moving the second reading of the Finance Bill, .No. 4, Mr Stewart said the first part gave extra borrowing powers to the Government against the financial requirements of the nest financial year. He recalled that during the emergency session this year, authority had been given in legislation to abolish borrowing powers relating to education and railways. Notwithstanding these responsibilities being placed upon the Consolidated Fund, the amount provided this year was lower than for some years past. During the past six years, the borrowing authorities of the Government, attained an average of 6J millions, but on account of the programme of public works having been curtailed, three millions were now considered sufficient. The programme of the current financial year, the Minister added, was provided for by the loan raised in London on June 8 last, and by local issues. The three millions it was now proposed to take authority to borrow would provide for the next financial year’s expenditure which would be dealt with in the estimates at the ordinary session in June next year. During last session, authority to borrow on Treasury Bills had been increased from four millions to six millions. The practice of the Government was to borrow on these Bills when there was insufficient revenue coming in to meet current expenditure, and to repay the amount when the revenue was collected. “In the past,” Mr Stewart added, “when we had large balances to carry forward in the Consolidated Fund, the necessity for Treasury Bills did not arise so acutely as at present, but with the steady diminution of accumulated surpluses, and the heavy depletion of cash caused by deficiency in the revenue, it has become necessary to rely upon this temporary financial accommodation, and the land and income tax revenue woull not come in until late in the year, but expenditure made steady calls upon funds throughout the year. It was proposed therefore to obtain power to borrow up to one third of the estimated revenue for the year.

Referring to the clause relating to income tax upon mining and scheelite companies, Mr Stewart said that this clause had originally been included In the Land and Income Tax Amendment Bill, but had been held over pending investigation. The Public Accounts Committee had heard evidence on the subject, and had approved the clause. The provisions in the Bill dealing with unemployment allowed the Board and local authorities to use money from the Unemployment Fund for necessary and valuable work, on private property. Arrangements were to be made with the owners that where possible, the whole or part of the money expended in this way, should subsequently be recovered. LABOUR CRITICISM. Mr Savage said the Bill extended a wholly undesirable policy. It proposed to borrow' £3,000,000, but there was no policy statement regarding the expenditure of the money and no suggestion as to when it was to be borrowed. It seemed remarkable that borrowing on Treasury Bills had just about doubled since 1926. He complained that the Government was not legislating for the future, but was trying to live on reserves until after the elections. Reserves and depreciation funds were being transferred to the Consolidation Fund, in the endeavour to avoid putting extra taxation on those who should be made to pay. Continuing, he reviewed the clauses of the BiJi briefly, and said while racing taxation could be remitted in part, the grant to the Massey Agricultural College had been reduced. The clauses relating to the Unemployment Act would increase the number of unemployed, because it would authorise subsiding work which would benefit private individuals. He appealed to the Government to make provision for unemployed women. The amount payable to School Committees was to be reduced by a shilling per child. That would not be a popular move. The Bill referred to the superannuation rights of the General Manager of Railways and appeared to protect those rights. Parliament was being asked to protect the head of the Department while those lower down were suffering a reduction. If Mr Sterling had come under the earlier Act he would have got about £lOOO, but if the clause before the House were passed he would get about £l6OO a year. The Government was trying to balance the Budget and it seemed to him they were going to sacrifice some of the educational institutions, and also some of the probationers, who should have entered the teaching profession by doing so. The Bill was read a second time and was then considered in committee.

Mr Wilkinson said he thought In this country we could have found men to occupy the position of Chairman of the Railways Board who had not the advantage of heavy superannuation. He understood the present Chairman (Col. Esson) received £B3O a year superannuation,' and that as Chairman of another Board, he received a further amount, in addition to the £lOOO a year he was paid as Chairman of the Railways Board. Mr Forbes said that Colonel Esson had not desired to be Chairman of the Board, but had acceded to the Prime Minister’s request to fill the position until arrangements could be made to enable the General Manager to take his place. Colonel Esson was an exceedingly capable public servant, and had been asked to take the position on account of his ability. EDUCATION GRANTS. Replying to other speakers, Mr Forbes said the clause in the Bill reducing the amount of capitation grant to Education Boards did not affect actual capitation payments to School Committees, which was paid out of separate funds. He added that although it appeared that reduction in payment to the Boards was represented by one shilling, the extent of reduction was only sid, that position being the result of other reductions effected previously. He said the Boards had sufficient reserves to meet the 53d decrease without hardship.

In the evening the discussion on the short title of thq Finance Bill was continued.

Replying to criticisms of the increase from £2/2/- to £4/4/- per week in the charge for maintenance at mental hospitals, Mr Young said that four guineas represented the maximum charge. It was not intended that the general rates should- be increased, but the maximum was being raised with a view to people paying In accordance with their means. He pointed out that only the more wealthy people would be affected by the increase. The short title was passed.

Replying to questions regarding utilisation of reserve funds, Mr Stewart said the funds had been built up from surpluses and consequently their use in time of stress was justifiable. It would be necessary to rehabilitate the reserve fund as soon as the country’s finance permitted. Mr Parry protested against the clause authorising local bodies, with the concurrence of the Unemployment Board, to undertake work for the benefit oi private property. He said the wording of the clause left scope for break ing down the standard of living. Jc would enable work on which standard rates of wages would normally be paid, to be undertaken at relief rates. It would open the door too widely to a general onslaught on the workers’ conditions.

Mr Coates said that if the clause proved dangerous Parliament could overhaul it. No one could say that No. 5 Scheme had been perfect. Although much useful work had been done under it, there was a great deal that would not be reproductive. Local bodies had been circulated with reference to widening the scope of the scheme, and the response had been most encouraging. There had to he more latitude and it was with that end in view that the clause had been drafted.

Labour members* called for a division on the clause which was retained by 39 to 12.

Mr Parry raised a protest against a subsequent clause giving to the Minister of Public Works powers similar to those which he (Mr Parry) had objected to granting local bodies. Mr Coates pointed out that as in the case of the former clause it would be possible for Parliament to remedy any faults should they arise.

The clause was adopted. Progress was reported to enable the introduction by Governor-General’s message of the Mortgagors Relief Amendment Bill, amendments to the Native Land Bill and the Supplementary Estimates. Sir A. T. Ngata explained that the amendments to the Native Land Bill were merely of a machinery nature.

Explaining the Mortgagors Relief Amendment Bill, Mr Forbes said it gave the Court power to deal with the question of reduction in interest rates on mortgages. This power was not given in the original Act, which dealt only with the, postponements: The Bill was read a first time. The House rose at midnight till 10.30 to-morrow morning. THIS MORNING’S SITTING. EDUCATION ECONOMIES. WELLINGTON, November 10. The House of Representatives met at 10.30 a.m. Replying to Mr Parry, Mr Coates said it was the intention of the Government and the Unemployment Board that to the utmost extent funds would allow, unemployment men should be provided with work both before and after Christmas. It was also hoped that it would be possible to give effect to the Government’s wish to pay men in full before Christmas. Urgency was accorded the remainder of the sessions’s business, including the passage of the Appropriation Bill, which is yet to be introduced. The Prime Minister stated that owing to a certain amount of objection having been raised to the Building Construction Bill, it was not intended to go on with that measure at this stage. Consideration of the Finance Bill, in committee, was resumed. Opposition was again raised to the clause reducing capitation grants to Education Boards. Mr Forbes explains that the Boards had surpluses on which they could carry on. Any reductions effected would be in the direction of cutting down administration expenses. There would be no reduction in the assistance to school committees. Mr Atmore contended the clause decreased the ability of Boards to assist committees. He considered it could be made safe if its operation were limited to this year. Labour members also expressed a doubt that the position of school committees was safeguarded. The clause was passed on a division by 35 to 17. The clause authorising closing certain schools and enrolment of pupils at correspondence schools was also challenged. It was alleged that this proposal represented an attack on the education of children in backblocks. Mr Wilkinson declared that if the Government were determined to effect economies in the education system, it was beginning at the wrong end, by curtailing service in the outlying districts. Mr Forbes pointed out that before any school was closed all the circumstances would have to be taken into consideration, and no action would be taken unless it would have the result of providing better education for the children. The clause was passed without a division. Mr Wilkinson divided the House on a clause which calls for approval of the Minister of Education in cases of expenditure of endowment money by a high schools Board of, Governors. He complained that there was no evidence the Boards had been consulted with reference to the clause, and he urged it should be held over meantime. The clause was retained by 40 to 17 votes. The clause granting conditional authority to terminate employment of married women as teachers was passed without discussion. The House adjourned at one p.m. LEGISLATIVE COUNCIL. WELLINGTON, November 9. The Legislative Council met at 11 a.m. Replying to Mr Carrington, Mr Masters said his attention had been drawn to the importation of certain magazines allegedly containing indecent matter. Some had been prohibited by the Government, but the others of a doubtful nature not covered by the Indecent Publications Act. The Government was carefully watching the matter.

Speaking on the third reading of the Education Reserves Amendment Bill, Mr Thompson urged the need for improvement in the secondary education system. He said it was doubtful if many children were worthy of free places. He suggested that the tests be stiffened. . - The Minister of Education (Mr Masters) agreed that there was need for stocktaking, and said a complete survey was being made of the position. It was intended this year to do away with the accrediting system, and revert to the examinations. Reports from various parts of the Dominion indicated that the standard of woi k was very disquieting. He agreed there was a need for stiffening up, especially in regard to spelling. The Bill was passed without amendment. The Land Laws Amendment Bill was read a second time pro forma, and referred to the Lands Committee. The Scientific and Industrial Research Amendment Bill, received from the House, was read a second time, nro forma, and referred to the Statutes Revision Committee. Speaking on the second reading of the Mountain Guides’ Bill, Sir F. Bell and Mr. Hanan protested against the setting up of a further Board. Sir F. Bell said the time would arrive when every decent man would be a member of some Board or other. Sir J. Parr said he was impressed by the protests and would discuss the matter with the Department, before committal. The Bill was read a second time. The Mining Amendment Bill and the Counties’ Amendment Bill was put through all stages unamended and The Land Laws Amendment Bill, Reserves and Other Lands Disposal Bill, Auckland Harbour Board, and other Local Bodies Empowering Bill, and the Auckland War Memorial Museum Maintenance Amendment Bill, were put through all stages and passed without amendment. In committee, on the Mountain Guides Bill, Sir J. Parr accepted an amendment deleting a provision in the Bill for the establishment of a Board. The Bill was then put through the remaining stages and passed. The Local Legislation Bill was received from the House and referred to the Local Bills Committee. The Statutes Revision Committee recommended that the Scientific and Industrial Research Amendment Bill be not allowed to proceed. Mr Masters moved that the Bill be referred back to the committee. The Government was anxious to get the measure through, as it would result in co-ordination of the work at present being carried on by the Industries and Commerce Department and the Agricultural Department. It would not result in any additional cost.

The motion was carried. The Council rose at 4.10 p.m. until 11 a.m. to-morrow. TO-DAY'S MEETING WELLINGTON, November 10. The Legislative Council met at 11 a.m. The Local Legislation Bill was reported from the Local Bills Committee, with an amendment affecting the Opotiki Borough Council. On the motion of Sir J. Parr, the bill was referred back to the Committee for further consideration. The Scientific and Industrial Research Amendment Bill was put through all stages and passed. The Counsel adjourned at noon until 2.30.