BUDGET DEBATE

Gisborne Times, Volume LXIII, Issue 10065, 1 August 1925, Page 5

BUDGET DEBATE

LABUit’S LAND POLICY

MR SAVAGE ENUNCIATES PLANKS

EVERY SETTLER SHOULD HAVE WIRELESS SET. (I’EES3 ASSOCIATION.) WELLINGTON, July 31. Resuming the debate on the Budget, Mr Savage said be proposed to devote the greater part of liis speech to elaborating Labor's land policy. This had been much misrepresented in the press and what he contended was that before Labor’s land policy was condemned the policy itself should be examined- The question of money was closely allied to that of land, and he thought members should meet dui-ing the recess to give some consideration to these problems upon which they were supposed to legislate. Finance bristled with difficulties, some of which were of our own making. Inflation or deflation of currency was sure to deti-imentally affect someone. v Stabilisation was what the Government should aim at, and he had long wondered why members did not give more serious consideration to this subject of currency and the whole field of finance including taxation. A Commissioner had been appointed but still we had a long way to go before we got out or the wilderness. Coming to the land question Air Savage said much had been said concerning the leasehold and tho freehold. He quoted from an article written in 1898 by Mr S. Percy Smith, then Secretary of the Lands Department, in which he pointed out that the leasehold 'enabled a working man to get land when he had little or no capital outside his own strong right arm. That was virtually the position taken up by the Labor party. Under the freehold tenure tenants woiking lands were completely at the mercy of the owner, who as time went on could go on increasing rents, and the harder the tenant worked the more firmly he fixed the shackles on himself. This applied particularly to shopkeepers who built up good businesses and then found their rents increased as fast as their business increased. He favored some revision of the mortgage system yvhich would give relief to those laboring under the heavy interest burden. Inflation of land values still existed and although that inflation played an important part in connection with soldier settlements valuation and reduction of rent and the price of land did not get rid of the cause of inflation.

What the Labor party proposed to do was to prevent inflation by pre venting land speculation, continued Mr Savage. To illustrate how they proposed to do this he proceeded to enunciate planks in Labor’s land policy (1) the conservation of the national endowment which he took to mean there would he no more alienation of Crown lands; (2) recognition of interests of the whole community in land by land tenure based on occupancy and use, which will secure to the farmer the full fruits of his labor; (3) the tenant’s absolute right to improvement; (4) securing to the community all values created by the community; (5) the elimination of exploitation of a settler by establishing a State Bank; (6) State valuation of land, and transfers to he effected by the State; (7) prevention of the present wasteful methods of dealing with our timber supplies; (8) all Virgin lands to be prepared on occu-, pancy by the State before settlement ; (9) The State to undertake all development work and give improved access in rural districts by increased graduated tax on large estates; (10> every encouragement to. all forms of of agricultural co-operation ; (11) municipal farms shipping and marketing facilities. Labor wished to give the occupier a security of tenure which was more than they had at present, considering the number being sold up by big financial institutions. They wished to see the land being put to its best use by abolishing speculation This they would do by a steeply graded land tax. They wanted to abolish the present hardship of backblock life by the State providing reasonable facilities for home and social life He would like to see every backblock home supplied with its wireless set to keep them in touch with the outside world. As matters stood he wondered anyone went into the country at all. They wanted to see some provision made for research facilities to find the best means of bringing land to its fullest productive use, and they wanted to see an extension of the principle of co-operation to all fields where waste can be eliminated, and they would give every assistance to facilitate the scientific marketing of produce in all countries of the world. The speaker then proceeded to deal with Labor’s land valuation proposals which. were based on present arrangements but if any owner was not satisfied with the State valuation he might fix his own valuation, the State to have the right to acquire the property at any time thereafter at the valuation so fixed plus the value of improvements. The. owner might at any time reduce his vacation. All transfers were to be done by the State through the Land Transfer Department so cutting . out land agents, who in the last five years took toll on occupiers of £11.742,550. Labor wanted to see the fullest use being made of land, and where necessary would take power to compulsorily acquire such land for the State as they considered could carry more people and produce more. The Labor party was earnest in the matter of housing and town planning and for this purpose would acquire large areas im proximity to large towns on whch modern houses could be. built on town planning lines.' Taxation of city lands would not be fox-gotten in order to secure community values for the people. Land purchased by the State would be paid for by bonds bearing interest. He anticipated no difficulty in raising the necessary money. They did not propose to interfere in any way with the right of inheritance. They proposed to i.mpos'e a steeply-graded land tax with a view to crushing land monopoly. All areas over 20,000 acres which came into the hands of the State would be surveyed and settled in accordance with Labor’s policy, which would mean a saving of at least two per cent, to the settlers. Labor wanted the settler to occupy liis fai-m for his life-time with the right to bequeath his right to occupy, together with His interest in all his improvement Labor’s aim was to begin to apply the provisions of its policy to ail lands which have been made. available for closer settlement, beginning with larger estates and continuing until the lands of the Dominion had been settled to the full carrying capacity. Later on the policy would be made" to apply to all lands upon which the State in future makes advances. By this policy the. farmer had nothing to lose but his mortgage. and he certainly was not losing that under the present Government Excepting in cases where land is required for closer settlement the policy of Labor was to keep the present. occupiers on ,the land. Therefore; all surrenders must be the result of the farmers own motions. Somo of Labor’s policy was - embodied in the Budget as instanced by the proposal to increase the conveyance tax. The Reform party said there was no land aggregation going on in the Dominion. Why then were they taking steps to stop it; . ; MR. R *XSOM ADVOCATES . TROFrr SHARING. ;■ j The House resumed at .7.30. j .. 7 Mr. Ransom (Pa.hiatua) ; resuming the debate on the Budget, commented

on the reticence of members of the Government in their attitude toward the Budget. They seeinel unwilling to come forward in defence of the Financial Statement, which was notable for its weakness. He condemned the incidence of taxation, which allowed many wealthy land owners to escape, hut pressed heavily on people with small incomes. Through the medium of Customs duties the Government promised to make provision for the prevention of land, aggregation, but he suggested that an addition to transfer charges would only add to the capital cost of land. It was not amalgamation of small holdings that was harmful, but the joining up of large estates that was so objeetionab’e.

Mr. Ransom complained no attempt was being made to enforce existing laws against “dummyism.” He criticised the amount of money advanced by the State Advances Department for the building of large homes in cities to the detriment . of genuine settlers on the land. The Budget suggestion that local investors should be given an opportunity to lend to the Advances Department was to be applauded, and ho hoped it would be acted upon. Mr. Ransom referring to secondary industries, urged that measures should bo taken to improve the marketing system, so that local manufacturers could be made available to consumers at prices as reasonable as those asked for imported articles, which were often made from raw material produced in New Zealand, exported, and then reimported. He suggested the New Zealand manufacturing industries might ho helped by the institution of profit-sharing.

LAECRITE BLAMES “BIG BUSI-

NESSES” FOR FUSION SCHEME,

Mr. Lee (Auckland East), discussing the fusion negotiations, declared it was desired by “big business” interests for one purpose, to “dish the Labor party.” The “big businesses” which backed the present Government did not care anything for tho welfare of the great mass of people. The Government had tried several schemes to secure the lowering of the cost of living but none of the remedies had proved of avail. He denounced the Government’* land settlement policy, especially as applied to placing returned soldiers on the land. He challenged the Minister of Lan’ds to produce a statement of lands, the value of which had been written down declaring lie would not dare to do this before the election, because it would disclose faulty administration.

MR LYSNAR PROTESTS AGAINST NO-CONFIDENCE MOTIONS

Mr Lysnar protested against the continuous no-confidence motions. One was enough to test the strength of the parties, but after that they should not be persisted in. So far as fusion was concerned it had failed, and he hoped it would be dropped, tio would not say who was responsible for its failure but he would go to the country "as an Independent, and let the people decide. He favored Imperial trade in all its branches. He was alarmed at the rapid increase in German imports and favored a heavy duty on German goods, particularly as we were not getting our share of the German indemnity money. He favored more use being made of the Biitish Government’s trading scheme under which money was to be found for use in the Deminions free of interest .

AMENDMENT' REJECTED

At the close of Mr Lysnar’s speech a division was taken on Mr Sidey’s amendment which was rejected by 32 votes to 23, Labor voting with the Liberals.

At the dinner adjournment. Mr Ransom had just risen to speak.

LABOR AND HENRY FORD’S SYSTEM.

Mr. .Wright (Wellington Suburbs) dex>reeated the criticisms levelled at the Prime Minister in view of the fact that he had not yet had a, chance to prove himself in that position. Referring to unemployment, he said the Labor Government in England had found itself unable to solve tbfl». miir employment problem, so that their denunciation of the Conservatives and Liberals for doing nothing in tbits respect was pointless. Labor speakers had criticised Henry Ford’s employment system, because it did not p'ovide constant work for all bis large staffs, but they did not give the reason why many men left Ford’s work. Voices: Because thev won’t work.

Touching on land aggregation, it had been alleged that in some cases schools had to be closed owing to settlers being forced to leave the district, but no instances were given. Referring to Customs taxation, Mr. Wright said he believed they should maintain a “free breakfast table,” and be believed that was practically done in New Zealand.

Mr. De la Perelle (Awarua) moved the adjournment of the debate and the House rose at 9.45 till 2.30 cku Tuesday.