THE BUDGET

Hawera Star, Volume XLVIII, 31 July 1924, Page 5

THE BUDGET

DEBATE CONTINUED. AMOUNT OF SURPLUS. (BT TELEGRAPH PRESS ASSOCIAIION. I WELLINGTON, July 30. Ihe debate on the Budget was conie the House of Representatives this afternoon and to-night. Mr T. K. Sidey (Dunedin South) said the tune was when the country expected to find the Government’s policy proposals in the Budget, but that time had passed. Taxation proposals were always eagerly looked for, but in spite of the fact that the Taxation Commission had its investigation, and it was known that its report was not to be widely departed from, there was no reference to it in the Budget, because the Government evidently was unable to make up its mind. Discussing the surplus, Mr Sidey blamed the Premier for withholding the announcement of the surplus for so long. This was contrarv to the usual practice, and while the information. had not been given to the people of New Zealand as early as usual the fact was published in London as early as May that the surplus would be over £1,500,000. The surplus was really much larger than the sum announced. By taking into account several other sums which should have been taken into account the surplus reallv amounted to £2,500,000. Perhaps the Premier was reluctant to announce the true figures, because he was conscious that it was too large and that he had been taking too much money out of the pockets of the people. In connection with the yearly accounts there were some respects in which these accounts did not improve with closer inspection. A good deal of credit was being taken by the Government Because their expenditure was less than last year, but the test of the Government’s administration was that their expenditure must be under the annual appropriations and not undei: the permanent appropriations, which were largely lieyond Government control. Under the annual appropriations the expenditure, as compared wjth tiie previous year, increased by £408,000, and il the increase in out standing liabilities were added the increased expenditure would be found to be well over £500,000, in spite of the fact that £93,000 of last year’s decrease in expenditure was due to the fact that there was no general, election. Notwithstanding the increase of £1,200,000 in Customs revenue the total increase in revenue was wiped out by the increased expenditure under annual appropriations. It was the expenditure under permanent appropriations which enabled the Government to claim that, their expenditure was less than last year.

Air b. J. Rolleston (Timaru) opposed further remissions in taxation. If anything was done it should only be in the adjustment of Customs duty, any such concessions tot be made up from* direct taxation. He criticised the Taxation Commission constitution, because it did not include an economist and a Labour representative. Discussing the question of the moratorium, he submitted that there was more in it than interference with private contracts; there was the great additional question of wliat was to become of the farms from which the cultivators had to walk. If this happened to any great extent there was going to be a loss in production, which was a matter which gravely concerned the whole country. He thought the present method of dealing with the housing question was not economically sound, and would lie much better managed by local committees. Mr H. T. Armstrong (Christchurch East) criticised the taxation report, and proceeded to condemn the failure of the Government to provide more houses for the people, while thev were steadily aggravating the trouble bv their immigration policy. Mr 0. Hawken (Egmont) considered the Budget revealed that the country was in a thoroughly sound position. What the Government had done in the matter of granting educational facilities was greatly to their credit. It was true that we did not have all we might have in the matter of agricultural education, but the position of settlers in the backblocks was immensely improved; in fact, the Minister for Education had done wonders in this respect, as had also the Postmaster-General in the matter of country telephones. He favoured more money' being made available. for settlers and the establishment of agricultural banks, which would help to relieve the pressure on the Advances Department and at the same time teach farmers some idea of thrift and practical finance.

The debate was continued by other sneakers till 10.25 p.m., when the House adjourned till 2.30 p.m. to-rrior-row.