HOUSE SITS LATE

Greymouth Evening Star, 13 September 1934, Page 7

HOUSE SITS LATE

BUDGET DEBATE CLOSING DEFENCE EXPENDITURE [FEB PBESS ASSOCIATION.] WELLINGTON, September 12. In the House, this afternoon, the Gaming Amendment Bill was received from the Legislative Council and read a first lime. Mr Clyde Carr asked the Minister of Finance whether he was taking any steps to conserve the interests of debenture and bondholders in various companies dealt with in the interim report of the Companies’ Commission. Members’ he said, were being besieged by constituents, whose interest payments were being withheld. Mr Coates, in reply, said: —The Act places no restriction nor- imposes any penalty on remittances of money wtihin New Zealand, and if the Company has funds in New Zealand, properly available for the purpose, there is no reason that I am aware of why interest to New Zealand debentureholders should not be paid, if it is due.

Mr Carr asked if the Minister wonk lo anything to help people to ge heir interest, but Mr Coates did noi

reply. On the motion of Mr Forbes, urgency was accorded the Financial debate, which was' resumed by Mr Richards, who said it w r as a false hope that the Budget would bring prosperity back to the country. He contended it was only wealthy persons and businesses who would benefit from the wage tax reduction, not the man receiving £2 a week or less. He criticised the expenditure on defence, while the Government was not willing to spend a few thousands on old age pensions. Mr Cobbe resumed his speech, interrupted by the adjournment last night. Dealing with defence, he said that for the past three years, the Department had curtailed expenditure wherever reasonably possible. The change in world conditions and modern methods of attack and defence of nations made it necessary that New Zealand should take such steps as existing conditions rendered necessary for the security of her people, trade and territory. The Government was not aggressive, and wished to avoid trouble, not to seek it, but when the country was at stake, it claimed the right to take steps to protect themselves, and in taking any steps necessary it believed it had the support of every man and woman in New Zealand. Mr Barnard: You will not have the support of the Labour Party.

Mr Cobbe continued it was the intention to develop the existing liaison with Australia as a first step in that direction. The Government decided to resume the training of officer candidates for the New Zealand Permanent Forces at the Royal Military College, Australia. Four such cadets would be sent to the College early in the New Year. It "was also hoped to effect an interchange of officers for varying periods in the near future. In a country such as New Zealand, air arm defence forces become of enormous importance. That arm will be very materially increased. The Government had at present on order from England two flights of torpedo-carrying aircraft, one flight of coastal reconnaisance aircraft. All were to be manned by a regular personel. In addition to the present nucleus squadrons of the territorial air force, it was intended to effect progressive replacement of machines available for use by the territorial air force, so that ultimately they would be fully equipped with trainer aircraft of the most modern design. He believed the Dominion could provide airmen who, when fully trained, for initiative and pluck would be second to none. He also thought it advisable to send a young Air Force officer to the Air Staff College at Andover (England). It was also intended to provide antiaircraft guns at certain vulnerable points, and also instal additional armaments in the existing coast defences. The guns to be installed will be of the latest design and have a range of 20,000 yards. A considerably increased amount has been allocated for civil aviation. It is most desirable that branch should be encouraged. An advance of £47,792 in the Naval vote was accounted for by extra, fuel, oil, extra naval stores, refitting the warship Dunedin, extra, training alterations 'to works, and necessary machinery. Expenditure for land defence and aviation in 1933-34 in Britain was £l/4/- a head, South Africa 7/4., .Canada 4/2, Australia 7/2, New' Zealand 3/8. New Zealand had something worth defending. The steps taken were imperative. Every youngman of average health and strength should be drilled. Mr Sullivan hoped the question of national superannuation would be taken up by Parliament and by the people, as it had a far-reaching action. He said that if people were given security of such a fund, need for them to save would not exist. The whole economic machine would be stimulated and would contribute to the continued maintenance of prosperity more than anything else the House could develop. He contended that people were too generous hearted to want a reduction of twopence in

the unemployment tax, and hoped the Government, would not persist in taking it away. Mr Polson said it w r as absolutely necessary if the primary producer was to face the difficulties confronting him, that interest rates must be reduced, he suggested, to 3 per cent, on long-term securities. Dealing with the Mortgages Corporation he could not imagine the State handing its lending departments to a private corporation. FOOD FOR ALL. Mr Webb said the only State institutions that were in a flourishing condition to-day were those that had been bitterly opposed, when originated, by the conservative-minded people of that day. He instanced the’State Advances Department, Public Trust, Government Life and State Fire Insurance Department, and State Mines Department. He dealt with events in the early war years, and to the developments leading up to his imprisonment for refusing to go to the war. He would like to see a scheme evolved that would get the food into the homes of the people and find work for boys and girls. He thought all sides of the House should get to-

gether and inspire a message of hope for the people. Surely they could alter the present state of affairs. There was no reason why anybody should be in want in this young puntry, where there was food in plenty. Mr Campbell said he would like to- have seen a greater reduction in the unemployment tax. He appealed to the Minister of Lands to consider remitting sonje rents that had piled up against farmers, and give them some hope. Mr Atmore said the Government did not seem to realise it was the consumer that had to be considered to | improve the condition of the country, instead of the producer. Without purchasing power, the people could not buy. The only sound basis for trade with any country was goods for goods, and if New Zealand could secure cheap goods from Japan in return for her produce, she should take them.

Mr Howard said that everything the Coalition Government had done since it took office had been against the workers and in favour of the

moneyed class. Mr Lye said the imposition of the wage cuts was justified, and as soon as the country's finances allowed it, five pel’ cent of the cut was restored. Mr Connolly said that if the Government waited till all the unemployed were provided for, before salary restoration had been made, it would have been very unfair. The civil servants had borne a heavy burden and had carried out their duties w'ell. Tie suggested that stock and station agents should reduce interest rates by at least one per cent. Mr Fraser said that if there had been no Labour Opposition, the Government would not have done the things that were included in the Budget. The Government was now doing what Labour said could have been done all along, and the country would have been saved much suffering. He claimed that the AuditorGeneral was not up a tree regarding silver conversion. He reported on facts revealed during his audit, and was entitled to the fullest respect. Last year, over certain happenings, resentment was shown, and the Auditor-General was subjected to indignity he should not have been subjected to. Unfortunately there was too much truth in his statements. The fact that this year, the conversion of silver showed a. lass, demanded a reply. New Zealand should have done as well as South Africa. Mr Coates: We can’t do that. Mr Frase”: Well, the Minister should say why not. Mr Coates: I will give the facts. Mr Fraser said it was a very serious matter to talk slightingly of the Auditor-General, although he should not be above criticism.

Mr Fraser went on to criticise the small farms scheme, and said ten acres was too small an area. Mr Coates: I believe the ten acres scheme has proved the best training ground of the lot. The men have gone to bigger areas. Mr Fraser said he was only seeking information on the subject. His quarrel with the wage restoration was two-fold. In the first place it was not. big enough and in the second place it should never have been necessary. He was glad the restoration was made retrospective, but would

have liked to see the restoration to higher salaries held over, and full restoration made of old age pensions, also restoration made in other pensions. The debate was adjourned on the motion of Mr Coates, and the House rose at 2.30 a.m.