FINANCE BILL.

Gisborne Times, Volume LXVI, Issue 10450, 3 December 1927, Page 10

FINANCE BILL.

WHEAT PURCHASES FROM AUSTRALIA. MR HOLLAND’ TWITS GOVERN-; MENT WITH SOCIALISM. NATIONALIST LEADER CON-' , CREXED OVER NEW LOANS. WELLINGTON, Dec. 2. When the lion. W. Donnie Stew,rt moved the second reading of theFinance Bill in the House to-day, Air Holland asked how iar the Government was prepared to go in earrymg out tile pr.nciple laid down in clause 26, under which the Government entered into the business ct purchasing wheat from Australia, 'flint seemed to- be one of those socialistic- transactions an which the Government indulged from time to cinie. He was not objecting to it, out he wondered how lar the Govniiment was prepared to go in that direction. ’Mr G. AY. Forbes commented upon The fact that the Bill authorised the raising of loans amounting to £'»' JD3,OGO. It was true that it would act all bo expended in one year, but die amount of money being raised must cause apprehension to serious rbinking people. Was all this expenditure necessary? Were all the railwavs under construction • needed? I'liese works should be put under most critical exam nation, and unless they could stand up to a paying test hey -should not be gone on with, no natter- whether they were in the lou.th or North Island. Sir John Luke said he was not a pessimist. He had every faith in the , uture of the country, but in view < the fact that we were propos ng to borrow a further £7,000.U00 he issued i warning that this-heavy borrowing ■ould not go on unless we simultane,misty were increasing the production of the country. AIR LYSNAR WANTS MORE PROGRESS ON AVAIKAKEAIOANA SCHEAIE. Air \Y. D.Lysnar objected to expenditure on irr.gation works wlult there was so much land lying idle, they should soiUe tnose hums ill's. oelure spending targe sums oil irrigation. He approved or the vote mthe Singapore base as an insurance When the House resumed at 2.30 Mr Lysiuu- continued the debate or Liie Finance 8.11, urging that the Arapuni hydro-electric works be suspended, as being too costly, and that dm Government should take up the Lake Waikarcmoatia scheme. COUNTRY’S FINANCIAL POSITION CAUSES ANXIETY. Sir Joseph Ward denounced what no characterised the excessive borrowing policy of the Government. The Don. *\V. D. Stewart said they ,vcre only taking autlior.ty tu horsin' Joseph Ward said if they did not want to spend money, oil what '•rounds were they taking authority To borrow money they did not want, the taxation proposals were being drought down in a piecemeal man.ier, with increases all rcuud ; while the alleged reductions were more uighly problematical. He would prefer to see them before he believed them. If it were not for a possible t-ise in the price of wool and dairy produce, .Parliament would have senuisiy to consider how it could steer ..he barque of State away frorn the slioals towards which it is drifting. The financial pos.tion of the 'country was suc-h that it could not fail to •a'use evervone the greatest anxiety. The debate was carried on by Messrs Veitch, Taplcy, Horn Harris, J. A. Lee (Auckland East) and Smith. MINISTER REPLIES TO CRITICISM SHOULD ALL PUBLIC 1 WORKS '‘STOP? The Alinister of Finance, the Hon W. Downie Stewart,- replying to criticism after the dinner adjournmeat, said, it was not to be assuined that because authority; was sou'dit to borrow £7,00(),0(X) in the aggregate, that all that money would be borrowed this year oi lmxt. So long as people expected the Gov eminent to expand in the way ol huge electrical undertakings winch in other countries were privately owned, and so long as the Government was expected to complete ether extensive public works, than it was imperative that money should be borrowed. The Government endeavoured fo spend it on works that were reasonably reproductive. Loans expended oil mental hospitals and similar services could not ie expected to return interest equal to the amount of the loan , but, licit was unavoidable. However, if the public decided that it no hmgjr desired these public services it would be a comparatively easy matter to realise on these assets and to reduce the public debt by approximately two* thirds, But would members who had been critical of the Government’s borrowing policy be satisfied if uncompleted works were left unfinished? AVould that be desirable ' economically ? - STATE ADVANCES SELFSUPPORTING Discussing the position of the State Advances Office, the Minister said complaint was continually made, that not sufficient was borrowed for this department. Yet -some people were continually pointing out that the public debt had m recent years increased by £18,000,000. Thai might be true, but these critics forgot to mention that £8,750,000 ol that sum was borrowed for State Advances, which was self-contained and self-supporting and placed no burden on taxpayers. So far from increasing the burden of the people My £900.000 annually the increase in the national debt through the State Advances was only £IOO,OOO. " PREMIER INQUIRING INTO RAILWAY LOSSES On the subject whether _ there should be borrowing for railways, he admitted that railway construction was a- matter -open to criticism, because many people thought the railways were out ol : date and in some cases it would he better to close thein down rather than pay heavy charges upon them. Transport ' was undoubtedly an increasing problem, and. the Prime Minister was now holding an investigation in order to see what the prospects - were before' we made too heavy' losses on the railways. The whole policy cf railway extension and construction was one that should be carefully looked into. The Minister said lie quite agreed that our borrowing was mounting up and that the expenditure of borrowed money should be most carefully supervised, Tut any attempt to curtail borrowing too severely, or stop it abruptly would have a very detrimental effect. The Bill was read a second time on the voices.—P.A. CLAUSE STRUCK OUT ON AIINISTEIt’S MOTION:* In committee on the-Bill Clause 18, authorising the amalgamation of schemas under the State Supply or Electrical Energy Act,' 11)17. . was struck out on the motion of the Minister of Public Works, who’said there was iust a little danger jioout, it, and it was not urgent' fey this year. , WELLINGTON HARBOR BOARD PUBLICITY. Clause .33 was challenged- by Mr Lee (Auckland EastiV - The clause validated the expenditure of £6OO by 'the Wellington Harbor. Board oil a full oage in a uunplemeuv 1 in .the London Times, and Air Leo wanted to know-what.: good Welling-* ton, or any: of 'the . other cities, - de- • J,- s .. va-

rived from such an advertisement, if tho advertisement bad been inserted in London’s Labor paper, the Daily Herald, he doubted if any validating clause ivould have been proposed. Sir J. Luke said that form of publicity' was of great value to Wellington, and he was surprised that the Harbor Board, which was a trading body, should have to come to the House for a validating Act at all. All- Eraser said local members were not consulted about this clause ind he proposed in future fo oppose similar clauses where local representatives wore ignored bv local bodies. The clause was passed. The Bill was reported with i ’nmr amendments, read a third time, and passed, and the House rose at '2-2“ till iO a.in. io-moi-.-jw. -P. 4. .