PARLIAMENT

Hawke's Bay Tribune, Volume XXII, Issue 257, 13 October 1932, Page 9

PARLIAMENT

HOUSE OF REPRESENTATIVES

THE BUDGET DEBATE, MR H. E. HOLLAND’S VIEWS. Wellington, Oct. 12. Continuing the Budget debate in the House of Representatives to-night, the Leader of the Opposition said that the Budget disclosed a deficit of £3,635,644, which did not include tho huge deficit in connection with the superannuation funds. The Government proceeded to raise money by mortgaging to the bank the public securities represented in discharged soklier settlement lands. In this way it hud secured advances amounting to £1,494,825, and the Government wrote this into its balance sheet as income This made it possible to present a deficit of £2,140,819 instead of the correct figure of £3,635,644. It would be seen that public securities were being used to meet current liability. The bank issued money to the Government on the basis of these securities —in other words, with the backing of public credit—and would charge interest on the money so issued. Before the Government could utilise its own credit resources to meet current liability it had to contract to pay a percentage tribute to the bank. He asked whether the Government could not have utilised its own credit resources to back its own issue of money without paying tribute to the bank. Furthermore, if a deficit could be made good out of reserves, those reserves could have been utilised long ago to provide remunerative work for unemployed and the creation of additional values for the State. COMMISSION’S REPORT. Dealing with the Expenditure Commission’s recommendations regarding the State superannuation funds, Mr Holland referred to the statement that there was a total actuarial liability ot the Government of approximately £23,-* 000,000. He said the Act provided that in the month of January in every year the Minister of Finance should pay into the fund and out of the Consolidated Fund the sum of £20,000, together with such, further amount, if any, as was required to meet the charges on the fund during the ensuing year. The Government had never honoured its obligations in this respect. So long as the present default continued, the position would continue to become worse.

Mr Holland declared that the commissioners had commenced their attack on the child at birth and pursued it to the grave. He dealt with the recommendations relating to the reduction of maternity allowances and Plunket Society grants, the abolition of family allowances and other charges proposed, adding: “Their demands are carried even beyond the grave and make reference to a saving of £15,375 on the maintenance of overseas graves. Mr A. Stuart (Rangitikei) said he was disappointed that the Prime Minister was not taking further action to reduce interest rates, because at the present rates practically no-one could afford to borrow and it would take the country years to recover. CENTRALISATION RECOMMENDATION. Mr D. W. Coleman (Gisborne) objected to the centralisation of Government departments as recommended by the Expenditure Commission.'He said that in any scheme of centralisation there would be an initial cost involved in the transfer of staff and records. It would be a considerable time before any saving could be made, and in the meantime the public would be put to great inconvenience Mr W. J. Broadfoot (Waitomo) expressed the opinion that hospital rating should be on a per capita basis and not on a land basis. He said that under the present system people in boroughs and cities were receiving undue preference over those “out back.” The debate was adjourned on the motion of Mr W. J. Jordan (Manukau), and the House rose at 11.45.