BUDGET DEBATE

Grey River Argus, 23 August 1945, Page 5

BUDGET DEBATE

TIMBER AND RESEARCH Need of State Bank WELLINGTON, Aug. 22.. Continuing the financial debate in the House of Representatives tonight, Mr W. J. Broadfoot (Nat., Waitomo), advocated further development of hydro-electric power. He said he did so with a view to estabr.shing industries that could pi’oduce foi all parts of the world. He suggested the production of nitrates, oxygen, hydrogen, and. other products of a similar nature. He suggested theie was a possibility of harnessing thermal power for production. of chemicals, and more research into production of flax fibre with a view to increasing its value. Discussing housing, he said that New Zealand had exported thirteen million feet ot building timber. It did so to get a similar amount, thirteen million ieet of Australian hardwood. That amount of New Zealand timber would have built a thousand homes. By exporting the timber the Government deprived, a thousand families of homes for many years to come. . Mr F. Langstone' (Govt., Waimarino) said there had been much talk in New Zealand, by the Opposition and by the vested interests, about bureaucracy. The fact was that there was more bureaucracy outside of the Government controlled enterprises than there was in those enterprises. If for no other reason, it was imperative, to have a State bank because of the size and the complexity of the State activities, which, themselves, required banking facilities. Another reason for the State bank was that the State already had the prerogative of issuing legal tend; er money and, it was onlv logical that the State should also control the issue of credit money, as the two forms of money were closely interrelated. Mr W. H. Gillespie (Nat., Hurunui), said that the Minister of Finance was giving relief to secondary industry through a special depreciation allowance on buildings and plant. Was he going to give a similar concession to primary industry? If secondary industry was entitled to it then the farmers should also receive relief. Mr C. M. Williams (Govt., Kaiapoi) said the Leader fo the Opposition on the previous evening had complained of inflation, but the only alternative to some measure of inflation was to pay for the war entirely out of taxation. Mr Holland, however, could not advocate such a policy, for he at the same time complained about taxation even when a large part of the war expenses have still to be met. The debate was interrupted at 10.30 by the adjournment.