BUDGET DEBATE

Hawera Star, Volume XLVII, 15 August 1928, Page 7

BUDGET DEBATE

LAND AND FINANCE.

SETTLEMENT OF SOLDIERS.

LABOUR PARTY 18 CRITICISM. (By Telegraph—Press Association.) WELLINGTON, Aug. 14. Mr J. R. Hamilton (Awarua) resumed the debate on the Budget in the House of Representatives to-d-ay. Ho said he proposed to confine his remarks to a criticism of tlie Public. Works policy. He noticed about 35 per cent, of tlie expenditure Was on railways. The Budget wa s full of frills and padding, said Mr W. E. Parry, who objected to the way in which it was placed before the House. Parliament should :be treated as a bo'ard of directors, and they should have placed before them a complete balance sheet.

•There was difficulty in the various walks of industry, but there was no one in the House who could say from the Budget what was right and what Was wrong. So far as -he could see the banks were doing very well, while farmers and merchants were passing through hard times. He quoted the recent statement of Sir Harold Beauchamp to the effect that the banks had an abundance of money to lend, and said it would be interesting to learn whence that money came, and why there was no reduction in interest rates to tlie small trader. Neither would the farmers have any relief because they were mortgaged to the'ir full limit.

No new land was being opened up, so it was cle'ar that n'one of the banks* money was -going to help the settlers. ,11c predicted there would be 'a reduction in imports, and consequently a reduced turnover and increased prices, so workers who were already suffering would be hit doubly hard as a result of the policy pursued by the Government.

The remedy for thi-s was to increase tho purchasing power .of those who were not now able to buy sufficient local products to give them a fair standard of living. To do 'this the Government would have to regulate . imports in rati-o to expo Hts. It must increase the earning power of the workers. Discussing soldier settlement's Mr r Parry denied that tho Press and the people so 'clamoured foi- farms for soldiers that the Government, was compelled to buy land a’t high prices. Ho quoted an Auckland paper, which -described thi's policy -as one of “blunder,” and no word's could more strongly condemn it than those contained in the columns of otheT leading newspapers. Never had any Government so line an opportunity to do something for the Dominion. They had 5000 men ready to go on tlie land and they had twenty millions, of money, but instead of preparing State lands they bought private lands at high prices so that the descendant's of the owners could live idly and play golf.

The test of success or failure of the Government policy was whether or not production increased. Notwithstanding the Government’s spending £13,OOOIXIO on soldier settlement tlie Government Statistician reported that the production of the country per head of population had not increased! since 1911. Tlie Minister of Finance had stated in his Budget that there cou 1 d be no reduction in taxation until production increased, «so we found opl-selves in stalemate because soldier settlements had not increased' the volume of production owing to the Government blundering in that connection. This showed the Government was, not worthy to administer the affairs of the country

Air. C. E. Bellringer (Taranaki) contended that if. the volume of production had not increased the value of the products had'. He defended the soldier settlement policy of the Government, and argued that the proportion of failures was not nearly -us great as was generally supposed. If the country got out of the problem of settling soldiers on the land with, the loss of' £5,000,000 it did very well. Under all the circumstances he maintained that no Government had ever done more for the farmers than- the present- one. Indeed, if fault was found:, it was that they had favoured the farmers at the expense of the business section of the community. It had been said that the Government had not found money for the farmers, but' the fact was that when the farmers had good security they had no difficulty in obtaining loans. The State Advances Department was the most popular institution in ; the Dominion, while the rural credits department was doing useful service. There was therefore no foundation for the criticism- made by the Deader of the Opposition that the Government policy in connection with the Post Office Savings Bank deposits had in any way acted to the detriment of farmers. Mr. Bellringer justified the Government’s refusal to reduce taxation at- the present juncture and praised its land poliev, especially that part of it which made the reading of new lands a first consideration. The Hon. D. Buddoi advised caution •in the matter of expenditure" on railways. Petrol had revolutionised locomotion, and it was impossible for the railways to compete- successfully with the motor. It was unwise to attempt to compel people to* use a form cf locomotion they did not want-.

Air J. G. Eliott complained that the Public Trust Office was charging too much for the administration of certain estates. He suggested that membejw’ honoraria were too low and should he increased. He: said tlie Govermnent should this -session tgi&iate to increase it, such, increase- to take effect as from January 1 next. That would give the electors an opportunity to send to Parliament men whom they considered worth the larger .sum. Air J. AlcCo-mbs said! the tables at the end of the Budget showed clearly that those in charge of the Treasury did not understand the first thug about the finances of the country, and it was entirely a matter -cf luck tlat the Afini-ster was able to balance his Budget at all. This TO evidenced by the erratic estimating. mistakes, by a lucky fluke, unopened to balance each cthrar. Air McCombs complained of the lavish borrowing going on and that the full- purposes of the loans: were not disclosed. The railways were mentioned, but no (reference was made to. road works, which would be worn out long before the loans were paid off. The adjournment of the debate was moved' bv Sir John- Luke and the House rose at midnight till 2.30 p.m. >