FINANCE DEBATE

Grey River Argus, 7 May 1942, Page 4

FINANCE DEBATE

OPPOSITION LEADER Calls For Economy LONG CiVIL SERVICE HOURS URGED. [Per Press Association.] PA WELLINGTON, May 6. There was a good sprinkling of the public in the galleries of the House for the opening of the financial debate to-night, before the Leader of the Opposition began his speech. Mr Holland said that had it been, suggested two years ago that the financial programme for tms country would total 186 million pounds for one year, the statement would have been ridiculed by all. No small amount of courage had been employed in writing the historic document. The position was that ibo millions had to be found, of which 133 millions was for war, and 53 millions for ordinary expenditure, faat meant that the total expenditure for the war of that sum was 14s 6d in the pound, and that for the domestic expenditure was 5s 6d in the pound. Of the total required, taxation would produce ninety millions, and ninetysix millions would be borrowed from our own resources. New Zealand would raise 130 millions by taxation and borrowing, while fifty-six nuilions would be raised by borrowing Overseas. ' Taxation on income was seventy-one times greater to-day than it was in the first year of- the Great War. No one questioned tne necessity for providing the required money, and no one 1 questioned that the burdens must be heavy. He considered the Budget made it clear that the Government was unwilling to rcditide domestic epiplencwture ■ beyond the fall in revenue. It would spend up to the total of income, The Financial. Statement reflected a position that the Opposition had been predicting for two years. He considered that the Government had failed lamentably in not freezing costs at the outbreak of the war. The import restriction policy had great.y added to Nev/ Zealand’s war costs. When goods could be imported, permits were not forthcoming. Now they worn double price, and hai’der to obtain. He hoped that, some consideration would be given to farmers. It was wrong to increase the wage of a city carpenter receiving £9 10s a week, and deny some increase to the country worker. He also considered that a very unsatisfactory state of affairs existed in regard to social security. If we were going to build up the cost oi living bonuses and subsidies, it would be a far more just act to give the thirty shillings per week pension the five shillings increase, rather than the £9 10s per week pension. He made a plea foir thrifty people who provided for themselves. They had had an awfully rough deal from this Government. No person who provided for himself should be worse off. Mr Holland advocated a nationwide efficiency drive to dig out incompetence and waste. He suggested that the Committee of the House should sit! continuously, examining the accounts of the defence expenditure, and that an Investigating Com-mittee—-not a Fault Finding Bureau —should be set up, and given the widest powers. There was plenty of room for economy in the public service. For instance, he added, the Internal Marketing Department could be cut out. Government offices could be opened on Saturdays and men thus released, and the Commercial Broadcasting Service could be converted into a useful and worthwhile information bureau, while the Industries and Commerce Department could be turned upside down. There was plenty to do, and plenty who wanted to do it. They wanted an organisation drive and a lead, he concluded. HON. D. G. SULLIVAN IN REPLY. P.A. WELLINGTON, May 6. . ,/;n indication of the vast extent of to-day’s struggle was given in the great advance in taxation to-day, compared with that in the last war, said the Minister of Supply, Hon. D. G. Sullivan, who followed Mr. Holland. Referring to Mr. Holland’s criticism that estimates of war expenditure had not been submitted to the War Cabinet, Mr. Sullivan said that that was only partially true. The majority of the items that appeared in the Defence Estimates had already probably been approved by the War Cabinet, and every other idem would go to the War Cabinet for its approval. Personally, he did not think there would be the slightest difficulty about submitting the estimates as ,a whole to 'the War Cabinet, if there had been any indication that that was desired by the Members of the Opposition. The Minister said there was no country less in danger of inflation than New Zealand. Inflation largely expressed itself in increased prices, and he did-.not think that any country in the British Commonwealth, and probably outside of it, had been more successful than New Zealand in keeping prices on an even keel. The percentage increase in the all-'group retail prices since the outbreak of the war until the end of last year, was 11.1 .in Australia; 14.8 per cent, in Canada; 30 per cent, in Britain; .11.4 per cent, till October in South Africa; 10.6 per cent, in the United States to November, and 10 5 per cent, in New Zealand up to December. Since then the New Zealand figure has fallen to 8.5 per cent. . , . Mr. Holland was also wrong in has statement that the Government had not applied stabilisation. From the time that the Government had accepted the principles of stabilisation, none of the items in the stabilised list of goods had been permitted to rise in price. When it was necessary to give a larger recovery to tne sellers of goods on the stabilised list, the Government found the subsidy, thus preventing any rise in the price of the goods to the consumer. ine plain fact of the matter, added the Minister, was that, to-day. the forty - hour week had gone overboard Mr. Holland: You admit that? Mr. Sullivan: “Yes—and it has rone overboard with the consent or the workers.” The Minister gave figures rel<tvin„ to the factory production for wai purposes. He declared that it must be a matter of pride to this country that all of the representations trial, lin'd come from oui' soldiers QP-d others overseas paid a tribute to tntexcellence of the New Zealand battiedress. and footwear. The worker in all phases of war production iw done an enthusiastic job. work me. overtime on every occasion tnat was reunited. . „ The House rose at 10.10 o clock until 2.30 io-morrow.