INTEREST AND RENT

Grey River Argus, 5 May 1932, Page 5

INTEREST AND RENT

Sir F. Bell SAYS CUTS ARE COMMUNISTIC. (Per Press Association). WELLINGTON. May 4. The Legislative Council went into committee on the National Expenditure Adjustment Bill. Sir F. Bell said it had originally t)een his intention to move that the section of the Bill relating to reduction of the rent and interest, should be made to apply only to the Crown but he now found it impossible To do that owing to the involved nature of the section. He therefore moved instead to delete The preamble to the section as the result of which the whole section would be destroyed. Sir F. Bell said the effect of the 811 was more than socialistic, it was Communistic. It aimed to take away from one person and give to another. T; was absolutely without precedent in the Parliament of N *w Zealand or in tin 1 Parliament of England. His concern, was that they were being ufked to create - a precedent, which might be used against them if ever a. Communist Party attained power. It was the first t me in the history of any country that had hitherto legislated reasonably, that anything of the sort had been attempted. Mr Masters said that if Sir F. Bell had been speaking in 1929. one could have understood his arguments, but. he was speaking in 1932, when New Zealand was passing through 'the worst depression in its history. The Bill was part of a scheme for the purpose of br’nging about a general reduction in costs. He denied that the measure was without precedent. and said that the general cut of 224 per cent, in rent and interest had been operating in Australia for the past twelve months If general costs of fixed charges in New Zealand were not brought down, thp farmers were going to b? faced with the necessity of walking off their land. The principle behind “he legislation was equality of sacrifice. The Government could not possibly accept the amendment, because its adoption would defeat the whole scheme of the Bill, the proposals of which was found ed on the recommendation of the most eminent economists, in New Zealand

Sir F. Bell contended that Mr Masters had advanced no argument at all why h's amendment should not b° adopted and he repeated that the only effect of the Bill was to take away from the man who ha 1* property or money, and give it to the man whu had not. On a division, the clause was retained by 23 votes to 3, those voting aga inst it being Sir F. Bell, S'r H. Rhodes and Mr Collins. Sir J. Allen moved an amendment with the object of making the 20 per cent, reduction apply to all mortgages, irrespective of when they were entered into.

This was defeated by 20 votes to 7, those supporting being Sir J. Allen, Sir T. Sidey, Mr Carrington, Mr Fagan, Mr Hanan, Mr Mclntyre and Mr Thompson. Tn reply to Sir F. Bell, Mr Masters said that in response to representations, the Min sit er of Finance was re. considering the clause making provi sion for the reduction of dividends on cumulative preference shares.

The amendment made in the Bill by the Statutes Revision Committee were approved, and the Bill was re-

ported to the Council. The third reading was carried by 26 votes to 2, the minority being Messrs Fagan and Mclntyre. The Bill was passed and the Council adjourned until this afternoon.