THE BUDGET DEBATE IS CONTINUED

Grey River Argus, 25 August 1949, Page 5

THE BUDGET DEBATE IS CONTINUED

Richest Not Paying Most Taxation ? P.A. WELLINGTON, August 24. In the House of Representatives to-day, the debate on the budget was continued. Mr W. A. Bodkin (Nat., Central Otago) said tjie Minister of Finance was asking for £l3O millions alto-’ gether. He claimed that taxation to provide this would fall heaviest on groups with incomes from £3OO a year to £5OO a year. He said proof of that could be found in the fact that the combined incomes of those who are on the higher income level —those with £2OOO a year and more —would not amount to the cost for one month’s government of the country, which was £9,250,000. WAIHI GOLD SUBSIDY? He declared that if a dollar loan was negotiated, the funds would come from the International Monetary Fund after the Government had approached it cap in hand. He asserted that if New Zealand continued to produce gold, she would not need to raise the dollar loan. Gold was a commodity which would purchase goods or services in any land. The industry had been thrown to the wolves because of Government shortsightedness. He said the Government’s sudden policy of dollar borrowing was a policy of despair. It showed that the ■ Government was. bankrupt of ideas of statesmanship, and incapable of grappling with the situation. If the Government acceded to a request for a small subsidy on gold the Waihi mine could have kept up production. TOO MUCH SURPLUS

Mr E. R. Neale (Nat., Nelson) said the budget was more colourless than its two predecessors, and showed that the Government after four years of peace had no idea of grappling with New Zealand’s real problems. The nation’s accounts v'ere presented in a confused way. He said that if a company did likewise, it would be called dishonest, and the directors would soon b e out of their job. Sums not yet paid had been included in the annual accounts. Revenue collected had not been included. Wholesale transfers were made befor e the surplus was declared. He asserted that the true surplus for the past year was between eleven and fourteen millions. The budget declared a surplus of only £2,600,000. CA’ CANNY!

The Opposition, he said, had been asked to pin-point any items in the Estimates on which they would reduce the expenditure. It was asking the impossible. The Opposition could not get information it wanted from the Government. One could only describe the financial policy as extravagant beyond the point of recklessness. The return of the Labour Government would ensure more inflation, higher prices, more controls and an increase in the/cost of living. HOPS TOO CHEAP?

Mr Neale criticised the Price Tribunal for delays in making pronouncements on cases which came before it. Delay was hampering industry. The hop-growing industry was declining in Nelson. It was because the return to growers from the prices of their product was uneconomic. If the industry declined further, the only recourse to supplies would be the United States. EXPENDITURE WANTED He said he hoped that the piomise of the Government to complete the Nelson-Murchison railway link would be honoured. Mr H. Combs (Govt., Onslow) said: “The business man is on a really good wicket to-day. But what the business man wanted to do was to keep’ everything for himself”. A RUFFLED MEMBER Mr Combs said that the member for Tauranga (Mr F. Doidge) said, by an intejection that he “would sack ad me ruolic Servants”. This was met with a hot denial by Mr Doidge when the Budget debate was continued tonight. "That's a lie” said Mr Doidge. He was requested to withdraw by Mr Speaker. “I withdraw,” said Mr Doidge, “even though 1 know from the bottom of my heart it is an outrageous lie.” Mr Speaker then requested the Member for Tauranga to withdraw unreservedly. Mr Doidge complied with the request. NEW ZEALAND WELL OFF

Mr Combs continued that the Budget was an indication of how well off we were. “We have every right to expect that, the people oi New Zealand will return this Government to office,” said Mr Combs. “The way we have been going in the last fourteen years is the way that, we intend to go in the next fourteen years—with improvements.” He said he was quite satisfied that the expenditure covered by the Budget and estimates was in the best control. He said that most of the importers had found that they had been very fairly treated. If we had more sterling funds, more goods would come (into this country, and if we wanted more sterling funds, then our production had to be increased. TAXATION QUESTION

Mr C. M. Bowden (Nat., Karori) said no Budget in recent years had a colder reception. The greatest criticism of it was its bareness and unreality. It spoke of the need for increased productivity. It gave no lead to that end. War had been declared on the taxpayer by the Minister, who claimed he was better able to spend the nfoney than were the taxpayers themselves. DOLLARS Mr Bowden discussed a dollar loan. He said it appeared some ’ negotiations had already been entered into. What was the purpose. Was it a fact that the Government had already entered into contracts with the United States to supply electrical equipment for the Roxburgh Gorge hydro scheme ? Were British firms not being given an opportunity of tendering ? The proposed loan was presumably to pay for American equipment to which the Government was already committed. Was New Zealand to allow Mr Nash to continue on his spendthrift way ? He had managed to date, by inflation, by use of the War Expenses Fund, and by an infusion of millions of pounds under the Lend Lease. We now were approaching a new phase of world prices. The present witches dance oi millions should be halted as the means of enabling tax co . r ' c( j\f lor D to be made. Mr Bowden said the Budget was that of a Government whose sands were running put, a Government which was losing touch with the people, losing old friends and failing to make new ones.

irresponsible statements Hon Mr McCombs said Mr Bowden’s statements that contracts for the

tion should have made any such statement.

Mr McCombs said that no contracts have been entered into. The British firms would be given their chance in connection with the Roxburgh hydro scheme. WHOSE RESPONSIBILITY

This Government, he said, had diverted more trade to Britain than had any other Government Mr Holland had said that a dollar loan should be negotiated “on an Empire basis”. But wnat did he mean ? New Zealand was a sovereign country. It was managing its own affairs; and, if we found it necessary to contract debts, we, alone, should oe responsible tor repaying them. It we needed a dollar loan, that would be New Zealand's business and New Zealand alone would be responsible for its repayment. Mr McCombs -said that the goods available in New Ze’aland tor sale are now eleven per cent more per head than, in the pre-war years. It was not correct for the Leader of the Opposition to say that production was declining. DIRT FLUNG Mr McCombs, replied to interjections from Opposition members, who asked where the goods were. Mr McCombs suggested that if the Member lor Hawkes Bay (Mr Harker) looked in his own Home, he would find more goods today than he had previously. Mr Harker: “I’ll bet you a fiver you won’t. Take that up, if you’re game.” Mr McCombs: “No. I wont take a bet with you.” Mr Harker: “No! You dirty little squib !” _ , Mr A. C. Baxter (Govt., Raglan) here rose to a point of order. He sought a ruling from Mr Speaker, who said that he did not hear what the Member for Hawkes Bay (Mr Harker) had said. He asked the member to repeat the words he used. Mr Harker did so. Mr Speaker said that it was unusual for a member to pass such a remark. He asked that the member for Hawkes Bay withdraw unreservedly, and apologise to the House. Mr Harker said that he would withdraw and apologise, but he wished to raise a separate point of order and to ask if the Minister was in order — .. ‘ Mr Speaker did not permit . the Member for Hawkes Bay to continue. Mr Speaker said that letters were .Still coining in to him from the listeners, saying that the .members were making unparliamentary remarks about each other, and naming thoce members. Mr Speaker said that he would have to ask members to restrain themselves. No doubt, the member for Hawkes Bay had suddenly flared up as all members had done at some time, but he hoped that Members would refrain from making unparliamentary references to other niernbers. One day, he would be compelled to read extracts from the letters he had received. Mr N. Oram (Nat., Manawatu) rose to a point of order. He. said that the remark of the Minister of. Education imputed that the integrity of the Member for Hawkes Bay was not to be trusted, and that he was dishonest. That had led up to the remark made by the Member for Hawkes Bay. The imputation was clear to everyone who heard it. Hon Mr McCombs: “If I have hurt the feelings of the Member for Hawkes Bav, I withdraw my remarks. I am not prepared to take a wager with anybody.” . Hon Mr McCombs continuing his speech, said that a large amount of expenditure was due to the increase in wages made by Arbitration Court pronouncement. Would the Opposition members deny that the public servants 'should have an increase in Wa fne ’debate was interrupted at 10.3 G.