Parliament

Hawke's Bay Tribune, Volume XVII, Issue 205, 13 August 1927, Page 8

Parliament

HOUSE OF REPRESENTATIVES BUDGET DEBATE CONTINUES. Wellington, Aug. 12. The debate on the Budget was resumed by Mr. E. D. McLennan (Franklin) who thought the Budget a most satisfactory statement of .e Dominion’s position. He did not agree with Mr. R. McKeen (Wellington South) that indirect taxation was pressing unfairly on the workers, but the figures disclosed in the Budget showed that the burden of taxation was fairly distributed. Our importations had brought about much of our financial depression, resulting in unemployment. The real remedy for unemployment was closer settlement of the land and increased production. To achieve this end farm life must be made more attractive by giving the farmers better means of communication and other facilities The speaker congratulated the Agricultural Department on the accuracy of its produce grading, and concluded by urging the Government to provide farmers with an ample supply of cheap fertilisers. SINGAPORE BASE JNEUESSAKI. Mr. T. M. Wilford (Hull) said tie proposed to discuss the defence of the Empire in relation to the Singapore Naval Base. He had the fortune in 1923 of visiting the East, and the only people there he found opposed to Britain’s proposals were the rubber barons and tin kings of Malay. The opposition of these people was due to a cause which would be news to most, because the British Government had decided that the base was to be constructed at trade union rates of pay. This had caused alarm amongst those who had become rich by means of cheap Chinese labour, liiose States near the base wanted it and now contributed liberally towards it. There was but one opinion in the East and that was that Singapore must be controlled by Britain. I’he Singapore base was an insurance. It might be asked, “Insurance against whom?” It was an insurance not against any particular person or thing but against anything that might happen. The opposition to the Singapore base was first started by Colonel Repington in 1921, who said it would cost £lO,000,000 to dredge the western entrance. The answer to that wa» there wag no v. estern entrance, which was blocked by a causeway built for that purpose. It had been said the base was being laid down solely for the benefit of the rubber barons and tin kings. It was not breaking faith with t/apan, because geographically it had' no immediate relation to Japan. It had been said the base at Singapore was not necessary. It was necessary to keep command of India. Singapore was necessary to mobility. Our ships must have some place on which they could retire in the event of disaster. In 1921 Japan would have 4.000,000 trained miiitarv forces and was moving steadilv ahead in all quarters. She was already in Singapore, owning much land and many important points, and Holland agreed that in the event of Japan becoming ag gressive towards her colonies Hoi land would, in consideration of the Singapore naval base, hand over to Britain the island of Sumatra, so that she would control both sides of the Strait. Proceeding, he emphasised the importance of the base tc Australia and New Zealand. Our existence depended upon naval de fence, and the price we were asked to pay for it was not great for tLc security offered. A fleet stationed there might not prevent Japanese raiders, descending upon Australia, but those raiders would never get back to Japan. It was impossible to say what secret negotiations were going on between Russia and Japan. If Japan ever captured Singapore it would be many weeks before ’’e could receive any assistance from any British force. It had been said that Japan placed her cards on ’n» table She did nothing of the kind, a s witness her presentation of 21 points to China, six of which were secret and were never published. America found out these secret clauses and exposed them. China was prevailed upon not to agree r.o them, hence all the trouble between Japan and America. Japan was steadily moving her way down the Pacific, and her strength was in the complete union of her navy, army and people. In conclusion he wished to sav that we should never make Empire matters or Empire defence party matters. Although times were bad, we must not storm. The naval defence men who studied these big problems were better able to advise, and we should take their advice rather than that of the Pacifists, who would have us unprepared for war. We should be prepared to pay our share gladly as, apart from the question of insurance, it was a duty which none of us should shirk. A MASTER STROKE? Mr. A. Harris (Waitemata) said one of the outstanding features of the Budget was the tendency to economise in public expenditure, but what we wanted more than anything to dispel the depression was a bold reduction in taxation. It would have been a master stroke at this juncture. The speaker then proceeded to declare that there was often confusion in the use of the terms primary and secondary industries. One was as important as the other. The despised secondary industries were as necessary to produce much of the wealth which the evolution of time must of necessity transfer from the country to the towns.

Mr. J. A. Lee (Auckland East), referring to Mr. T. M. Wilford's remarks on Singapore, said the member for Hutt seemed to have forgotten that prominent men in Britain were opposed to the Singapore base. Mr. Lee said Mr. Waite had accused tho Labour party of trying to prevent nien reaching Chunak Bair to reinforce troops there- It was a pity Labour had not been able to do this, as it would have saved many thousands of British. Mr. I?ee congratulated the Minister on the success of the State Socialistic enterprises, as shown in the Budget, and lioped this form of Socialism would be extended in the field of insurance. The sinking fund was described by Mr. Lee merely as a form of collateral security for wars, obtained from capitalists abroad. Mr. Lee said the Minister of Defence in 1924 had criticised the amount of borrowing and the remission of income tax, yet he had since attained Ministerial office and had not used his influence to induce the Government to carry cwt its election promises. Referring

to wireless, Mr. Lee condemned the Government’s action in giving financial assistance to a privately-owned wireless corporation. There was no reason why a State bank should not produce as good a result as private concerns if the staff gave equally efficient service.

THE PUBLIC DEIBT. Mr. D. Jones said Mr. Lee had suggested that the country had gone to the bad by £8,000,000 in the two years 1925 and 1926, that, in fact, it had not received any value for that money. He reminded Mr Lee that of the ordinary public debt ail but £20,000,000 was revenue producing. Mr. Jones said the Reform administration was such that New Zealand’s credit abroad was the highest in the world. The Government had done a great deal to assist the farmers. The Labour spokesmen had defined “orgarfising finance in New Zealand” as Government control of all banking and insurance in the country, but Mr Savage, a member of the Labour party, had said, quite correctly, that a State bank could only give back the amount of interest earned. New Zealand banks during war time gave the country the cheapest money in the world. Mr. E. A. Ransom (Pahiatua), referring to telephones, said Mr Jones' suggestion that people should pay for installations was untenable and would mean that many country people would have to do without telephone services. He agreed with the suggestion that the Weraroa and Ruakura farms should be sold and the proceeds devoted to the agricultural college, but he disagreed with the idea of cutting the loss on the sale of the land. GOVERNMENT DEFENDED. Mr. J. Mason (Napier) denied the charge that the Government had done nothing to assist farmers financially, and that the Government had been squandering and over-borrowing. The members of the Opposition should, in fairness, point out how they would cut down borrowing. Would they curtail the amounts provided for housing or hydro-elec-tricity? The Labour party claimed that they would be able to run the railways at a profit, but the experience of Queensland in that direction was not encouraging. He favoured the expenditure on the Singapore base, and believed it would not be long before the country would turn the corner towards prosperity. Mr. J. Horne (Whakatipul attributed the present agricultural depression to excessive mortgaging, in spite of which the farmers had not efficient capital to carry on, and without that they could not succeed He advocated the amalgamation of the various produce boards, and thought the Dairy Board should be able to do something for the farmers by the elimination of the middleman, who was getting too big a cut out of our butter in London. He strongly urged the Government to give the State guarantee to the rural credit bonds, which would be the best servie they could render to the farmers.

' The adjournment of the debate was moved by Mr, J. Bitchener (Waitaki), and the House rose at 11.45 p.m. till 2.30 pm. on Tuesday.