PARLIAMENT.

Hawera Star, Volume XLV, 29 July 1925, Page 10

PARLIAMENT.

DEBATE ON THE BUDGET. NO-CONFIDENCE MOT! ON. MOVED BY NATIONALISTS. an i kuioraph —rt»ESf assol.i \*ri or* WELLINGTON, July 28. The debite on the Budget was opened in' the Bouse- to-night by Mr T. K. Sidev (Dunedin South), who spoke in t :o absence cf the Leader of the Opposition (Mr T. M. Wilford) through illness. Mr Sidev said that if full advantage had been taken of this country’s great productiveness and high prices its condition would he far better than it was to-day. If the Government had been alive' to its opportunities almost the who’c of the war debt could have been -.aid out of the high prices of our products during the war, but instead of that the Government had not put on war taxation until there was a cry from one end of the country to the other. Tliev put no restraint on the importation of luxuries, and permitted what was described at the tim e as an “orgy” of extravagance. The great reduction in expenditure churned to have been made apart from the “cut” was itself evidence of previous extravagance. After the Customs tariff of 1921-22 had been introduced importations in the follov, ing year increased by 2 per cent., and Customs taxation increased by 18 per cent., and while imports last vear increased during the same period by 40f per cent. The same tendency was again in evidence last year that had been going on since 1918, by which the proportion of indirect taxa- • d in a large measure by many was incretiped as compared with the direct taxation paid by a' few. Last vear. eve n including motor licensing fees as direct taxation, there was a further proportionate increase of indirect taxation, which now amounted to ."50 per cent. The revenue was under-estimated by £668,000 and the expenditure overestimated by £867.000. This was somewhat nearer the mark than had been the ease i n recent years, but the claim made that the sum of £867,000 _ as a “saving” on appropriations indicated the exercise «f economy might Ire very wide of the mark, and. in fact, might only be the result of an over-estimation of expenditure or a postponement of payments beyond the financial year. .'here was £600,000 ot outstanding liabilities. being £40.000 more than the previous year. The revenue increased by £682,630, but the House wou'd recollect that in the previous year a sum of £540,000, intetest on discharged soldiers’ settlement lean moneys, was expressly exclr.ded fiom the revenue account. That sum was included last year, and to make a fair comparison, therefore, with the previous year the sum of £540,000 should be deducted from last year’s revenue,’when it would appear that the increase of revenue was £142,600, while the inciease in expenditure was £1,251,•000. * Next year the estimate was for a further increase over last year of £1.600.000, while the revenue was estimated to increase only by £900,000. Reference was made to exports and imports, and to the diminishing margin between them. This country had been saved from eifects of over-importa-tion bv the high prices of its products, naiticulaply woo’. For the last quarter of the financial year, though 39.000 bales of wool less were exported than in the same quarter of the previous vear the value was £2,100,000 mere, and while for the same period 91.000 cu t. 'ess ' lamb and mutton whs cx<ii ied. the value was £45,000 more. Discussing fusion. Mr Sidey said lie was not one of those who took part in the recent negotiations for a new puiiy, and had, indeed, been somewhat aloof ftom them. If it was desired to bring such a party into existence it would surely be admitted that tne best time was before the party ..gating was renewed. Whatever proposals "nav have been made or discussed bv”the delegates regarding any definite number of portfo ios to he alottod to either side, lie (Mr Sidey) was in a position to say that the c-aiK.-us of the party to which lie belonged did concur in a decision that no stipulation should be made for any number of portfolios, but that the matter should be left entirely in thehands of the e a tier of the new party. ait was indicated in a letter to the Prime Minister by the Leader of the opposition. Under such circumstances, it appear- . ci v ungenerous on the part of the Prime Minister* to make the statement attributed to him at Palmerston North vntiv. namely, that “the Liberal Partv were simple out for the loaves and fishes of office, and that their desire to amalgamate on a national basis .as only skin deep.” That was most ..ngenei ous, in view of the announcement of the Leader of the Opposition that he (Mr Wilford) would not accept office. It now appeared to him (Mr Sidey) that the best way in which a new party r> In lirouglit about would be first ! ;> dear the air by turning the Government out of office. 4he rank and file h unities might then get together ind there wou'd be no suggestion of me unity absorbing the other. If it were too late for the House to do that it would he for the country co do it at the next election. . In order to test the feeling of the H0..50 on this subject lie proposed to move, as an amendment to the motion before the House : “That this House has no oonlideme in the Government, be.-nuso it has failed to bring about a more equitable system of taxation bv placing ti.e burden on individuals n nroportion to their ability to pay.’ The amendment was seconded by Mr G. W. Forbes (Hurunui). The Hon. Sir James Parr said Mr. Sidev had' been a dismal prophet, and he won d therefore try to cheer him p hy pointing oat that New Zen.and was a wonderful country, in proof of ■which lie stated that our trade todav was woith £104,(XK),000. Our proI ction and expo: ts were 'a wonderful tri' ute to the fertility of our country and the industry of our people. Our p os-eritv never was greater than it was t-o-dav, and it was spread through all (lasses. The deposits in our savings banks proved that our .prosperity belonged to no one class more than another, because those deposits wore not held U' - 11 few people, the average deuosit ner depositor being £64. A similar story was told when he came to speak of -private savings hanks, which had 117,040 depositors with - e 'its o-' £ : 5 216.579. There were thus in tie Dominion 85,000. depositors m our savings-banks, whose total deposits amounted to £52,100,000. Adding to this the deposits in all banks, we had a grand total of £102,000,000, which showed in a striding way the prosperity of not one section, but of all sections of our people. New Zealand was not a dismal country, and this was shown by th e patronage’ given to picture theatres and to racing. No less than £7,500,000 was

put through the totalisntor last- year. The importation of motor-cars and .eludes for next year would total the large sum of over £6,(X.0,1A)d. People paid £093,U;,0 in Customs duties 011 imported motor vehides during the :ast six months. Not all these veiiimes were for pine pleasure, and many 01 them were necessary to business de.elopment; but this expenditure, while some or it was to- he legretted, went to show that the spending power of New Zealanders was large and apparently increasing. The debate was continued till the House lose at 11 p.lll. NEW BILLS INTRODUCED. The Hon. 11. E. Bollard moved the second leading o. the Eire Brigades i>ill. which, lie said, was mainly a consolidating measure. A board may establish" a capital expenditure fund, for which thre e commissioners shall be appointed, who will deal with all moneys that may be appropriated by the board for the fund. Expenditure out of this fund will be approved by the Minister. The board may, with the consent of the Minister, for the purpose,, of paying gratuities or pensions to firemen, establish a deferred payment fund. No servant or agent of any insurance company can lie appointed secretary of a lire boaid. The Bill was lead a second time. In moving the *secon,j readig .-n the Counties Amendment Bill, the Minister said the Bill gave effect to many matters which were urgently de.siren oy ti.e Counties’ Association. It mado provision for a union of counties and for the establishment of imprest accounts. The definition of vehicles plying for hire was further extended. The bill was read a second tim e and rereriecl to the Local Bills Committee. On the .motion of the Hon. Sir IT H. Rhodes the Mutual Eire Insurance Amendment Bill was read :1 -second time. feir R. 11. Bliodes- introduced an amendment to the National Provident b uud Act, enabling hospital boa.ds to bring their emp.o..ees within the of the Act. Mr Veiteh, speaking after the supper adjournment, said Sir Jas. Parr’s speech was disappointing. There "'as no need for us to go to London for money. If s\e only organised the pro duetion of the country there would be so much wealth that we could provide all the money we required for publicpurposes. Taking up the question of fusion, he censured the remark attributed to the Prime Minister that the Liberals were looking for the loaves and fishes. The fact was that their leader had magnificently' declined to participate in any office if a National Party was formed. Sir James Parr: “Did he not ask for three portfolios 1 J ” Mr Veiteh: “I do not know all that our leader said, but I am certain he made no such stipulation.” Continuing, .Mr Veiteh said that the fact was that fusion failed because big financial institutions knew tlieir day was done as soon as a national government " took charge of the Treasury benches, and it was this Conservative element, led by the Minister of Lands, which fought against fusion. Sir James Parr had declaimed against local body borrowing, but he said nothing about borrowing by the central authority. Local bodies had great national works on hand. They were deserving of every confidence, and nothing should be done to hamper them in the public service they were rendering. We must also increase the national income by r increased production, but that could not be done without giving the farmer financial assistance through agricultural hanks, not through private financial institutions which were alway’s thinking of themselves and not the farmer. Our big State departments were now too big to be managed by men engaged in Parliamentary’ work, and there should be Parliamentary’ committees which would sit during the recess to consider all questions of management and expenditure. He advocated building our own railway engines and rolling stock rather than importing them.