BUDGET DEBATE

Hawke's Bay Tribune, Volume XXIV, Issue 231, 12 September 1934, Page 4

BUDGET DEBATE

PRAISE AND CRITICISM Railway Works Discussed FARMERS AND EXCHANGE By Telegraph—Press Association. WELLINGTON, September 11. The financial debate was resumed iu the House of Representatives to-day when speakers followed very much the same lines as those carlier in the debate—praise for the Budget by Government members aud criticism by Labour mem-

bers. Two speakers made special reference to the completion of railway works, their plea tor the work to be carried out having particular reference to the NapicrGisboruo and South Island Main Trunk railways.

Mr D. IV. Coleman (Gisborne, Labour) was disappointed with tho reference in the Budget to railway construction. lie would like to have seen tho Gisborne-Napier railway completed, it seemed that the railway was to be abandoned. He thought that if a vote could be taken, most members of the House would vote in favour of its com pletion. It was a popular thing to-day to blame the Railway Board, but the Railway Board had nothing to do with the stoppage of work on that line. Just, on £5,000,000 had been spent on the line, and the Public Works Department engineers stated that its completion would cost £1,800,000. Surely the line was worth that amount, and interest had to be paid on the amount expended whether a train ran over the line or not. The line would servo 43,000 people and 10 per cent, of the sheep in the Dominion were in that district. 11 the Government had definitely decided not to resume work on that line it would not adopt a dog-in-the-manger attitude, but would allow private on i terprise to take it over. At the same time ho considered that the line should be finished by the Government and not by private enterprise. Mr. Coleman considered that better treatment should have been meted out to the unemployed beforo any wage restorations were made. He criticised tho I Government for not making the old I ago pension increase retrospective, and j also for not giving the Arbitration ' Court power to issue a general order ' increasing wages. OPTIMISTIC BUDGET. Mr J. Linklater (Manawatu, Govern ment) congratulated the Minister of finance on the optimistic and cheerful Budget he had placed before the House, The speaker said that it must Uo pleasing to all to see a balanced Budget. Every country in the world had had tremendous difficulties to face, but few had faced them us New Zealand had. The task had been unpleasant lot all members of the Government, but it had stuck to its task, though it had had some deserters. The high exchange rule had been of grout benefit to the farmers who had had to be assisted in some way, and that assistance .had been given by raising the exchange. He could not understand why some mem bers said that the farmers had not received the benefit from the exchange. Air Linklater thought that the establishment of the Mortgage Corporation would give investors confidence in land investment. Tho corporation promised to provide ample security for land investment.

Mr C. A. Wilkinson (Egmont, Independent) criticised tho raising of the exchange. He said that the high exchange was bringing about conditions that, would be detrimental to all sections of the Dominion. The Government, he considered, should be most careful in taxing British goods, or they were in danger of setting up conditions that would be to New Zealand’s detriment. To-day the world had to fight for its markets, and New Zealand seemed to think that its outside markets were of little value. He went on to quote values of goods sent by Britain to foreign countries, and said that "France and the United States wore relatively much bettor customers of Britain than tho Argentine, Australia, Now Zealand and Canada. He was not a free-trader. He wanted fair treatment for the manufacturers, but unless they could reach a better balance between exports and imports than at present, trouble would follow. MORTGAGE CORPORATION. Regarding the Mortgage Corporation, he said that the State Advances and present lending institutions had treated the people very sympathetically. If a man had a ease to make he could put it up to the department, but he would have no chance of doing so to thg corporation. In that case business would be the essence of the contract. If a man could not pay he would bo sold up. Mr E. F. Healy (Wairau, Government), after congratulating the Minister of Finance on what he termed his “bull’s eye Budget,” turned to railway construction, particularly the South Island Alain Trunk. He said that part of his electorate had no chance of development while that railroad was at a standstill. He wondered what the Railway Board could manage; it could not manage even a sawmill, and it should not be left to tho board to say whether tho railway should be proceeded with or not. It would be in the interests of the country to complete both the Sonth Island Alam Trunk and the Gisborne-Napier line, 110 hoped that if a reasonable proposition was put to the Government by private enterprise to take over tile t iiristehiireli I‘ieimi line, it would nut stand in tho "ay.

Mr Healy appealed to the Minister of Lauds and the Government to consider ways of placing unemployed men in the South Island on small farms. Mrs E. R McCombs (Lyttelton, Labour) said that the most pressing problem of the Dominion at the present time was unemployment. Sho snid that sho could not help thinking that when the Government drew up its plans for the year it had not a thought of tho unemployed. 'The unemployment figures had shown a very small decrease in the past jet’r despite extra money cir-

culated through the sale of wool. People did uot want a reduction oi the unemployment taxation while unemployment continued She contended that the reduction should not have been made. The unemployed were in a desperate plight and were living in misery, often with the bailiff under the sumo roof. Surely if there seemed to bo a turn in the tide of the Government's finances, something should have beeb done for those people. MALNUTRITION REPORT. Mrs. McCombs quoted the Health Department’s report referring to malnutrition of children, also to the crowded conditions under which people were living. She said that many young children were compelled to help augment the family income by assisting on milk rounds, delivering newspapers or selling lollies iu picture shows. The department also thanked those who organised health camps iu order to prevent malnutrition among children. Was that an indication that the unemployed were being paid a sufficient wage? Thu whole Hung was an indictment ol the Government’s policy. The statement that it would not do to make relief nork lou attractive was an insult tv the workers of the Dominion. Alr» McCombs was astonished, considering all the appeals that hud been made by businessmen and others, that tile Government had done nothing for unemployed boys. The Government did not seem to have sufficient imagination to realise thut tho boys and girls were Hie best asset the Dominion had. The Minister of Education and tho Government had refused to do anything for the boys, but in New South Wales the Government had taken th" matter in hand and established seven vocational schools. Even more 'fas being done in England. The Government continued to collect an increasing sum —it must be over £1,000,000 annually from women —yet it was putting unemployed women and girls off with only a lew pounds It was time that the Government did something adequate lor those women and girls. Teachers laid suffered more severely than any other part of the Government servile. The reduction of salaries and the disorganisation of their work and the fact that a teacher had to shift to S n * u promotion meant continued unrest in the profession. Mrs. McCombs pleaded with the Government to do something for returned soldiers who suffered as a result of war service, hut who were unable to prove that their present condition was due to war service. DEFENCE VOTE DEFENDED. Mr W. I’. Endean (Parnell, Government) defended the increase in the defence vote, and said that in the last war New Zealand was defended in the North Sea. If war broke out in the Pacific he supposed that she would he defended somewhere in the viciuity of Singapore. He did not think that the raising of tho exchange was contrary to the spirit of the Ottawa agreement, his understanding being that that question was left open to each Dominion to decide for itself. Ho considered that with tho price of gold at about £7. it would pay tho Government to encourage that industry aud relax tho restrictions as much as possible. Tho tourist industry was another thing thut should be given every encouragement Mr. Endean thought that the Mortgage Corporation scheme should bo given close consideration and he hoped that the Goveminent would give an assurance that there would be no more interference with mortgagors’ relief so that tho private investor could take part in lending on land. He thought that the old age pension restoration should have been made retrospective, and considered that instead of restoring the wage cut to civil servants a big slice should have been taken off the unemployment tux under which the whole country was Air Enfean considered that the Government should bring down legislation to give it power to deal with university professors who made remarks such as those made at Auckland recently. Mr 11. McKeen (Wellington South, Labour) said that members on the Government side had evidently been vicing with each other to find suitable words in praise of the Budget, but he compared it with Columbus, who when he set out did not know where he was going, when he got there he did not know where he was and when he got back he did not know where ho had been. PROFESSORS’ ACTIVITIES. Mr McKeen said that the Auckland professors desired only to educate the people of New Zealand. What they said after t.he day’s work was done had nothing to do with the Government. He "asked the Government to do something to improve the apprenticeship position. The housing problem was one that should be tackled. There was a definite shortage of houses and two or three families were compelled to live in one bouse because they could not pay rent. He said that the sales tax was most inequitable and unjust and those who were paying it were persons with small wages. He thought that the tax should have bean removed.

Air. AlcKeen contended that the Budget should have shown a deficit of £2,967,000. In _ addition, the national debt was piling up year by year. Air McKeen said that the national debt, when the United Party took office was £251,000,000. It increased by £16,000,000 under the United Government and £17,000,000 under the Coalition. Tho Rt. Hon. J. G. Cobbo said that courageous administration had produced the present satisfactory Budget. The Government was satisfied that tho Mortgage Corporation would have a beneficial effect, especially on those who produced the real wealth of the country. Secondary industries could be successful only as far as they could supply local needs. It was to the primary producers that the Dominion must look. Tho exchange had been of great benefit to the farmers. He doubted if any Act passed in recent years had been of greater benefit than the Mortgages find Tenants Relief Act. There nas u steadily increasing tendency to settle matters privately, but many were left to t.he commissions, showing the confidence placed in tho commissions. Had it not been for the Act ho shuddered to think what would have happened to tho farmers of the Dominion. The debate was interrupted and the House rose at midnight..