ADDRESS-IN-REPLY DEBATE

Hawera Star, Volume LIV, 4 September 1935, Page 9

ADDRESS-IN-REPLY DEBATE

RECOVERY FROM DEPRESSION DOMINION’S STEADY PROGRESS THE PROBLEM OF TAXATION. (By letegrapli—Press Association,) WELLINGTON, Sept. 3. The Address-in-Reply motion was moved in the House of Representatives to-night by the Hon. A. D. McLeod (Co., Wairarapa). Mr McLeod referred to the jubilee of the King and to the excellent impression created by the new GovernoiGeneral. He went on to say there had been a- definite improvement in the country’s position during the last twelve months, and lie thought the Government could claim a lair .share of the credit for that improvement. After referring to the seriousness of tho unemployment problem, Mr McLeod said that if a majority of the electors at the polls declared Labour should rule in New Zealand he was Quite sure those with whom lie had been associated in polities would gne Labour a fair chance. He hoped that whatever happened at the election they would not have a Government in office that was not in power. Ihe greatest calamity that could Happen to a country was to have a Government held in office by a middle party. Mr McLeod referred to the depression that had faced the whole of the Empire since 1999-39 and dealt with Labour’s plan to- overcome it. He asked if Labour was aware that from 1910 to 1999 the average price of butter in New Zealand was Is 3d a lb. and the average price of wool, was £ls 10s a bale. It was not an easy thing to make trade agreements ; they could 1 not be made over the telephone. Only recently two Ministers had left New Zealand to endeavour to arrange agreements, and long discussions with representatives of other countries had taken place yet the Leader of the Opposition, if*lie became Prime Minister, was going to make agreements* in a verj short time. Mr McLeod also claimed that Mr Savage’s statements in reply to Sir Alfred Ransom showed he was a believer in inflation to the skies. EMPIRE PROBLEM. Mr McLeod admitted taxation was high, too high, but said the question of a’ remedy was a difficult one. It was a problem that faced the whole Empire. Taxation in Britain amounted to not less than £lO or £1 ‘ a head of the population; in Australia- it was £l7. That included £9 a head in subsidies. In New Zealand the total amount was £l*s 18s id a head, which included £3 18s 7d for unemployment. Mr McLeod agreed that as far as dairy produce was concerned, New Zealand’s consumption could be increased, but it was a question, of adjustment of values. The- farmer was glad if lie received *sd a gallon for liis milk, yet by the time it_ reached the consumer the cost was lod a gallon. The total taxation in New Zealand going to the Consolidated Fund was £20,176,345, but 'had it not been for the exchange rate that volume of taxation could not have been collected. Mr F. Lvo (Co., Waikato), who seconded the motion, surveyed the causes of the depression and the actions of tho Government to offset that depression. He believed the remedy to ho applied must be international. Both nationally and internationally the world was staggering under a burden of unproductive debt, and a policy of economic nationalism was adopted. He believed war debts should either be wiped out or repudiated. Britain had abandoned free trade and New Zealand had to take certain steps to meet the situation that had arisen.

HOPES OF IMPROVEMENT. Mr Lye added that the fall in the internal debt, the increase in the price of products and the adjustments that had taken, place in New Zealand would largely take the country out of its troubles. He believed there was reason to hope in a general improvement in the not very distant future. ■ He had been given to understand that a very great improvement, had taken place in Britain, and it had to he-re-membered that Britain was New Zealand’s best customer. There were abundant signs of recovery, so the people could face the future with hope and confidence.

The passing of legislation to benefit the farmers had been very beneficial, said Mr Lye. Figures issued in the past few days showed that 15,000 applications for relief were filed in the courts, 1-1,428 were referred to adjustment commissions and 13,673 had been dealt with by the commissions. The total value of the property was £30.000.000. He also had reason to believe that for every case settled by the commissions two were settled privately between the mortgagor and the mortgagee. He claimed that while what had 'been dene appeared to have been done for the farmer it had been done for New Zealand. He urged that close attention should be paid to the improvement of New Zealand’s products. Mr Lye referred to members who had indicated their intention not to seek re-electicn to the House. He regretted that nothing could be done for members who had given many years of valuable service to the country. He thought some superannuation scheme should be formulated for members. He hoped the Government would give consideration to the matter during the present session.

The debate was adjourned and the House rose at 9.15 p.m.