LONG DEBATE ENDED

Greymouth Evening Star, 14 September 1945, Page 2

LONG DEBATE ENDED

MR. MASH’S REPLY

NO TAXATION RELIEF WELLINGTON, September 13. The Budget debate reached the climax in the House of Representatives this afternoon when, after two speakers from the Government benches, Mr Nash rose to reply to th Mi- e! T. tG 'Omana (Govt., Eastern Maori) said that the Maori people were grateful to the Government for its rehabilitation policy. It wa s particularly gratifying that the Maori servicemen were put on an equal footing with their pakeha comrades. He made a special plea for the speeding un the supply of houses for the Maoris. An alleviation of the housing shortage would also tenet to reduce the dreaded tuberculosis scourge among the Maoris. -Mr R. McKeen (Govt., Wellington South) said that figures piloted by Mr W. Sullivan (Nat., Bay oi Plenty) the previous evening concerning timber supplies were entirely wrong. Mr Sullivan should know that the Government had a continuous survey operating regarding housing needs, and regarding the availability of materials. Mr Polson (Nat., Stratlord): You are full of plans, but there are no resuits Mr McKeen asked: What did Mr Bodkin (Nat., Central Otago) mean by his references to the War Expenses Account as being handled in a totalitarian fashion. Mr Bodkin: I meant that it should be produced in this House and discussed. Mr McKeen: If Mr Bodkin has been trying to confuse the people into believing that there is somecriminal —something almost totalitarian—in the way the War Expenses Account has been handled, then he is doing a grave injustice to this country. The Budget has given the details of the expenditure undei the War Expenses Account, and to suggest that there had been any undue secrecy is grossly unjust. Mr Nash, answering questions raised during the debate, said there was a special depreciation allowance of 20 per cent, on the cost of new plant and buildings in assessing income tax. This allowance would apply to new farm machinery bought within the relevant period. It had been proposed to make this concession operative from the end ot March, 1946, but if changing circumstances made it impracticable to do so, he would be glad to advance the I date to this month, September, or to April last. If that became possible, provision could be made lor it in the Bill giving effect to the proposals, which were outlined in the Budget. The reason for this depreciation concession was that prices were high at present, and they would probably remain high for some time. However, it was desirable in. the interests of increasing production, that as much plant and equipment as possible should be obtained at the earliest possible moment, and this depreciation concession was being introduced to this end. An additional allowance would apply in all cases where a depreciation deduction was normally permissible for income tax purposes. • ~ , . , Mr Nash said that it had been stated by an Opposition Member, during the debate, that the butterfat production last year was the lowest since 1901. Actually, the butterfat exported during the year ended June 30 last totalled 2,423,000 cwt. That figure was one which had been exceeded in only one other year. Last year the value of our trade exceeded £170,000,000. Mr 'Nash answered Mr Doidge (Nat., Tauranga), who made reference to the purchase of electrical equipment abroad. Mr Nash recalled that Mr H. Dalton (Chancellor of the Exchequer) had stated in Britain that six British firms quoted the same price to New Zealand for certain equipment. It was obvious these firms were working together to ensure that, whatever firm received a contract, it would make a good profit. Mr Doidge: Is it possible for us to see the files?

Mr Nash: I do not think that would be fair. The relevant information can be made available to the Leader of the Opposition. LEND-LEASE Continuing, Mr. Nash said: “The United States has supplied us with between 80 and 90 million pounds’ worth of war goods without any charge. As far as this electrical equipment was concerned, tenders were called for it on a world basis, and, to have ignored the. tenders, after they had been called for, would have created diplomatic difficulties.” Mr. Nash said that the present time was not the time to argue Lend-Lease principles, because of the delicate negotiations which were going on in Washington just now. Otherwise, the Government would have been pleased to state its attitude. It was common ground that prices charged by the United States to us were higher in relation to 1939 standards than were the prices that we charged the United States for our reverse Lend-Lease. But to suggest that we should pick out the United States, and should charge her more than we charged the United Kingdom would have been imprudent. It would have brought us considerable diplomatic and trading difficulties. We have bought from the United States at the same prices as everyone else bought. Opposition voice: We got no lump sum payment from the United States. Mr. Nash: We did not have to pay the United States for the goods which were required by us for war purposes; but we did have to pay Britain for these. Mr. Nash said that a difference in price levels between Lend-Lease and. Reverse Lend-Lease supplies between th United States and New Zealand was put up to the former country in 1942, and again in 1944. Mr. Nash said that some Governments were making a mistake in reducing their taxation so as to meet the present cry of the. people. Replying to an Opposition interjection, Mr. Nash said that our taxation would continue to help to combat inflation and for other reasons. He said the proposed scheme for domestic aid. as outlined by Miss M. B. Howard (Govt., Christchurch East) met with his approval, _ and the scheme should be brought in as soon as possible. Mr. Nash said that proposals concerning the Bank of New Zealand would come down before the House after the Government had approved of them. He added that the Government. was now investigating the whole position (of motor taxation. The tea adjournment was taken at 5.30 p.m. TAXATION AND REVENUE Mr. Nash continued his reply to the Budget debate to-night. He said j that only those amounts which would I come to charge in connection with ithe expenses of winding up the war effort were shown. Whether all those I amounts would come to charge by March 31 next he did not know, but I he hoped that, by the end of March, i we would get back to the Dominion ■ all of the servicemen still overseas, except those who, in conjunction with troops from Britain and the rest of the British CommonW’ealth, might be required to play their part in ensur-

ing that the terms of Japan s surrender were faithfully carried out. If we succeeded in getting all ot the men back by March 31 next, then every penny shown in the Estimates would be required. If not, that money Would still be required, and it could have been seen, from the analysis presented, that no more taxation was being imposed to meet the margin between the original and the revised Budgets. It had merely been shown that, if the men did get back by the end of the financial year, more money would be needed. Unless something went wrong, this amount would certainly be required,by June 30 next. The only question was that of whether the men would get back in time for all of the charges to be incurred in this financial year. It was imperative that money should be provided against that event. Mr. Nash said that it was proposed this year to examine the incidence of taxation, to find out where there were anomalies, and where relief should be granted. That meant that during this session, a number of sections of the Land and Income Tax Act required revision, and he hoped that, with the Government’s approval, that could be carried out this year, although it would probably mean some loss of revenue. Mr. Nash said that there was need for more taxation inspectors. Reports submitted to him, from, time to time, on the recovery of taxation byi inspectors indicated" a need for more of them. For instance, one taxpayer who returned his income as two thousand pounds for five years, was found to have an income of between nine and ten thousand. We were as honest as most communities, but there was a tendency for some people io regard the Government as legitimate game.

“We decided outside of investigating the incidence of taxation, not to reduce taxation this year,” Mr. Nash continued. “We may take powers to reduce it next year.” Full employment and a minimum family income were both more important than any reduction that could be made in taxes. What mattered was to ensure that those on the lower wage levels were first cared for, and whatever revenue was needed for that purpose it was planned to raise. The Government wanted to reduce the country’s debt to the maximum extent possible inside of good economics. That could not be done without extending production. The taxation would be kept up until the point was reached when the money was no longer needed. Mr. Polson: Until just before the npxt plpefion 9 Mr. Nash: Not just before! We will give them the opportunity of experiencing benefits for some time after! DIVISION ON ESTIMATES

After Mr. Nash concluded the Budget debate, Mr. Fraser announced that owing to the fact that the “Wahine” would be used to transport airmen from the Pacific and would be engaged on that important work for six weeks to two months, or even longer, it would be n’ecessary to re-arrange the sittings of the House. He had discussed the matter with the Leader ot the Opposition, and they were agreed that the best arrangement would be to adjourn over the coming week-end until Wednesday afternoon, and to start the following week on Monday. Mr. Polson (Nat., Stratford), discussed the first vote on the estimates, £125,081 for the legislative department, when the House went into committee of supply. Mr. Polson protested against the manner in which the Public Accounts were presented to the House. He said the position was entirely unsatisfactory. The Public Accounts Committee was handicapped in performing effective service. Mr. Goosman (Waikato), moved that the vote be reduced by one thousand pounds, as an indication that, in the opinion of the Committee all expenditure from war expenses account should be placed before Parliament in the same way as other departmental estimates. The Chairman of Committees, Mr. McKeen, ruled the latter part of Mr. Goosman’s motion out of order, as irrelevant. The motion to reduce the vote was rejected on a division by a vote, 38 to 30. . Mr. Watts (Nat., Riccarton) said he was unable to find any reference in the estimates to the proposed publicity section of the Prime Minister s Department, about which there had been a report published. Apparently all Departmental and Ministerial statements were to go through a sieve, and what came out the other side was to be information which would be released to the public. That brought up a very wide question of control by the State of public information. Mr. Broadfoot (Nat., Waitomo) asked the Prime Minister if the censorship still existed. Mr. Fraser, replying, said it did not in New Zealand. He could not answer for the military censorship overseas. There was not now any interception of letters in New Zealand. Mr. Fraser said there would be no question of the new publicity section screening Ministers and their statements, and of its saying that those statements must be censored. The Ministers had not taken to the wartime censorship any more kindly than did anyone else, and they would resent any interference by publicity abroad. ~ ~T x _ Answering Mr. Doidge (Nat., Tauranga) Mr. Fraser said he did not know if there were any truth m a rumour that Mr. J. T. Paul, Director of Publicity, would control the film unit of the new Department. Mr. Paul was a very capable man, and he would receive fair consideration. No man had had a harder job or done a better or more sincere job, than Mr. The House rose from 10.30 until 10.30 to-morrow.

SECURITY TAX REDUCTION WELLINGTON, September 14. ’ When the House of Representatives met at 10.30 a.m. to-day Mr Sheat gave notice to ask the Minister ot Finance Whether an announcement made in another place by the Leader of that place, Mr McLagan, to the effect that the Government intended to reduce the National Security Tax of 1/6 in the pound was made witn the Government’s authority. Mr Sheat asked for an undertaking that m future important announcements relating to tax reductions wotud be made in the House of Representatives prior to or simultaneously with their announcement in another place, so as to preserve the special rights oi the House of Representatives in relation to matters of public finance. Mr Fraser said it was not an announcement; it was an expression of opinion. ' Mr Gillespie gave notice to ask the Minister of Finance whether,', as he would not agree to the war risk for earthquake insurance covering other acts of God, would he amend the legislation regarding the. compulsory clause in insurance policies. Mr Gillespie said that now the war was over property owners should have the right to decide whether they tvould take' earthquake risk or not. EMPLOYMENT BILL

The Employment Bill was introduced and read a first time, and in explanation of its provisions the Prime Minister said the measure was important, as it affected the future economic development and policy of full employment. The Bill supplemented what had been announced in the Budget, raising Social Security to £2 for an unemployed man, £2 for a wife, and 10/- for each child. It was ouite clear that these amounts could not be paid loosely. Every opportunity would have to be given to

provide work for every man and woman, otherwise the principle of the minimum family income could not operate. Mr Holland asked was, this Bill giving effect to the minimum family income?

Mr Fraser agreed that it was. There would be a tie-up with, the Social Security provisions. It was impossible to. establish satisfactory payments to people out of work unless there existed machinery for exploring the possibilities of finding employment for them. There would be a separate portfolio to administer the employment service. Mr Holyoake: Will the Minister sit in this Chamber? Mr Fraser said he did not know, but if not he would have a good representative there. Mr Goosman: We can make a guess now. The Minister in charge will be Mr McLagan. Mr Fraser said that provision would be made for the retention of advisory committees of workers and employers .such as had functioned during war-time. Special endeavours would be made by the new service to find work for seasonal workers in the off season in order to ensure their availability for shearing, and similar jobs when they were needed. New Zealand was also pledged to provide full employment, and the Bill would establish the machinery necessary for that purpose. The Bill would assure people ot security, but would also point tn their responsibilities to contribute to the building up of the country. It was the other side of the provision of a minimum family income.

(Proceeding.) PARTICULARS OF BILLS.

WELLINGTON, Sept. 14. The establishment of a National Employment Service is provided for in the Employment Bill which was introduced and read a first time in the House to-day. An explanation of the measure was given by Mr. Fraser who said that it was proposed to transfer the machinery of the Nationary Service Department to the National Employment Service. The difference between the two departments was that the former was concerned with the application of compulsory regulations in regard to the direction oi labour, but the new department would operate on a purely voluntary basis. Provision is made in the Bill for the appointment of a Minister of Employment to control the new department and for the appointment of a Director of Employment and such other officers as may be necessary. The functions of the department will be to provide a complete employment service for the purpose of placing workers in employment, assisting employers to secure labour, assisting persons in all sections of the community to find better or mord suitable employment, whether in professional. technical, supervisory or other capacities, and assisting persons who require occupational readjustment or training or other assistance to enable them to continue or resume full-time employment. The Department is also empowered to make surveys of classes of employment required from time to time and to do all things deemed necessary or expedient for the purpose of placing suitable and qualified persons in such employment on a voluntary basis. The general functions of the department are to do all things necessary or expedient for promoting and maintaining full employment, whether by facilitating better location or availability of employment in relation to the labour available. For the purpose of assisting in administration and legislation advisory councils and advisory committees may be appointed. Every persons commits an offence who, for the purpose of obtaining any payment of benefit under the legislation for himself or any other person, makes a false statement or otherwise misleads the Minister or any officer of the department, or any other person. Provision is made for a penalty for such offences of a fine not exceeding £lOO or imprisonment not exceeding 12 months. Authority is given for making regulations for the obtaining of information required in relation to labour requirements or retrenchinents. movements of labour, subsidies or otherwise.

INDUSTRIAL DEVELOPMENT WELLINGTON, Sept. 14. The Minister of Industries and Commerce (Mr. Sullivan) announced to-day that the Industrial Development Committee had considered the tabulated results of a questionnaire issued to manufacturers by the Organisation for National Development regarding proposals for industrial expansion'in the immediate post-war period. Of the forms sent out to manufacturers 1250 replies had been received, many of them accompanied by letters setting out the detailed plans and proposals of the companies concerned and outlining immediate problems and difficulties. Mr. Sullivan said that much valuable information about manpower requirements, new machinery to be imported, and new factory buildings was now available, the only question being whether the 1250 replies could be considered sufficiently representative as a considerable number of replies were still awaited. The position revealed regarding manpower requirements was most encouraging and the new plant sought showed a healthy optimism regarding industrial expansion. There was likely to be a real problem connection with the considerable volume of industrial buildings required, as urgent consideration must be given to housing, hydro-elec-tric development, hospitals and schools. The Minister urged the manufacturers who have- not yet returned their questionnaires to do so. He added that the National Service Department was now contacting personally other employers to enable a fuller forecast of manpower requirements to be made.