PARLIAMENT.

Hawera Star, Volume XLV, 7 August 1925, Page 4

PARLIAMENT.

FH.NOIAL DEBATE.

. many Miters discussed. (by TELEGRji PRESS ASSOCIATION.) ViLLI N’GTO'N, Aug. 6. The debate,*' the Budget was continued in thepouse to-day, the principal speakerseing the Lela-der of the Labour Tarty « r . H, E. Holland) and the Prime Duster (Hon. J. G. Coaiteis). The Leader f the Labour Party (Mr. H. E. Houut) said the Budget showed that th<>, was a reduction of £395,480 in hide-tax and a reduction of £91,211 Aland tax, yet it was quite evident tf, incomes were increasing and thei\vais no necessity for these reductions; That being so the Government c-ouktake it that these reductions would , fought from the Labour benches, while the war liabilities remaineq-apital must bear its fair share of the liabilities. Mr. Holland dqted considerable time to replying tcvir. P. Hockley's criticism of Laboua-’tand policy. He said that to say a finer was not entitled to the fruits this labours and exertions was a. istuft remark, it was absurd to sav no tirpr in New Zealand was being was), land it was equally absurd to sayiat capital was necessary to start a Sfc© bank. Was it not rather credit tu capital that was required? As v instance in support' of this, was ityt a fact that the State Fire Jnsurau Department was established withoutapital?" Mr. Coates said Mr. bland' had described Reform as a TorGoveriiment, but the results had show that if- was really a Liberal and prc-essive Government. He had been ite rested to observe that while Mr. jolland had much to say regarding 1. JLsitt, he had not answered a suigbjne of the questions that that gentle-in fi-ad put to him at the. close of hiiSpeech last night. Mr. Holland: is there a-Agl© question there put to the Lea,r 0 f tho Labour Party? Mr. Ctoates said Labour’ sand policy had been dealt with ver^ff^.lively at the Franklin electii The farmer was a. practical mai\nd the leader of the Labour Party w ld have fhe greatest difficulty in c-onvijng the <* farmer that under his system % farmer was going to get the full flue of his improvements. When he-uld do that perhaps he would make sc© progress with the farmer, but i the meantime he need not devote irtlier attention to it. ■ - 1 - The Prime Minister said the had ' been .some criticism of the Aiibiation Court, and all he could say Wat hat if there was any legislation c the Statute 'Book which prevenitec the Arbitration Count from fully cdiidiering what the basic rate of wages suld be it would be repealed. Tliafvas the attitude of the Government. Jt, had been contended that, the \sdo wage should be raised from £3 17Cd per week to £6, -but- investigation jn. Australian States had shown that >fi a high rate as £6 per week could jt be paid by industries in that coiiniV. In New Zealand there would note enough, money to pay these increaf

wages, because other wages would ; proportionately li ighe r. This country had heavy obligatioi and the only way to .increase wag, wias to increase our production and pi wealth. He was fully convinced flu there was not enough money to g . round and to give everyone a basic wag of £6, but. if the Arbitration Couf ,liad to consider that proposal he sale emphatically that the court must be free to do so unhampered by any political considerations. He denied that the Government had done anything “clever” to placate farmers in the matter of agricultural, banks. What he did ,say was that whatever scheme they adopted to provide farmers with credit it must be a success. He was not prepared to say' just what form that credit should take. It, was worth a few thousand pounds to find out, and he proposed to send two gentlemen abroad to inquire. Mr. Jt. Masters (Stratford) : Why not send luihiusised men? Mr. Coates said he had no fear of the men the Government proposed to send away. They were experienced' men, and were capable of looking at the question of agricultural banks from all points of view. if as a result of their recommendations agricultural banks were started, he could not see how they could operate without assistance, and the State would have to do its share. So far as railways were concerned, he thought the policy on which they had agreed, on tire advice of experts, would stand lor several years. There might he criticism,. of the decision to increase the freights, (but the facts had to be faced, and the railways had to pay their way. At present the railways were not paying. At the end of the next twelve months they would see better liow the new tariff was working out, for by that time it would have had a fair trial. Something had been said about not building all our own engines in New Zealand, but it was ,a fact that the engine, built here cost over £IOOO more ■ than the British-made engine, and it was useless going on building engines here under those circumstances. H.e therefore proposed to scrap the obsolete machinery, remodel .the workshops and make a fresh -Start with up-to-date appliances. Jt would cost a good deal of money, but it would be cheaper in the end. He denied that the taxation proposals of the Government were designed in the interest of rich men. They were in the interest of the country as a whole, for no country could prosper on high taxation. Their proposals might not 'be entirely satisfactory, but they were as good as conditions would allow. WJien things were better possibly they would be able to bring their prepo,Sals more into harmony with the recommendations of the taxation, commission. He said the reduction m taxation, this vear would amount to about £300,000..* Alter other] members had spoken the Minister lor Finance replied, and the debate ended at 1.55 a.in., when the House adjourned till 2.30 p.m.