BUDGET DEBATE

Hawke's Bay Tribune, Volume XXIV, Issue 232, 13 September 1934, Page 4

BUDGET DEBATE

DRAWING NEAR THE END House Accords Urgency A LATE SITTING Bv Telegraph—Press Association. WELLINGTON, September 12. The House of Representatives was engaged throughout practically the whole of to-day on the debate on the Budget, there being little new ground broken by members on either side of the House. On the motion of the Prime Minister, the Rt. Hon. G. W. Forbes, urgency was accorded the debate. Mr A. S. Richards (Roskill, Labour) said that it was a false hope that the Budget would bring prosperity back to the country. He considered that taxation should not have been touched, but the unemployed and pensioners reclassified and their Weekly earnings increased, as that would increase the consumptive power of the people. The Government claimed to be a larmers’ Government, and it was rather' surprising, tlierelore, that from time to nine statements were made by Ministers that substantial rises m overseas prices might be expected. He could see no hope ot a substantial rise coming. Mr Richards protested agaiust the change-over from the State Advances Lending Department to .the Mortgage Corporation, and he could not see that any benefit to the country would be derived. The speaker contended that it was only wealthy persons and businesses who would benefit from the wage tax reduction. Not many were receiving £2 a week or less. Criticism was made by Mr Richards of the expenditure on defence while tho Government was not willing to spend a few thousand on old age pensions. The House had no assurance that the defence equipment, on which £300,000 was being spent, would be up-to-date when it did arrive. He considered that the money could be better spent elsewhere. “WAR SPIRIT STIMULATED.” Mr D. G. Sullivan (Avon. Labour) said that such a speech as that just delivered by the Minister of Defence (appearing in another column) had the effect of stimulating the war spipit and furthering the interests of armament firms. He hoped that the question of national superannuation would be taken up by Parliament and by the people, as it had a far-reaching action. If the people were given the security of such a fund, the need for them to save would not exist, the whole economic machine would be stimulated and would contribute to the continued maintenance of prosperity more than anything else that the House could develop. Mr Sullivan believed that the Mortgage Corporation would mean the destruction of the State's great lending departments, and he did not believe that the corporation would extend to the country’s borrowers the consideration extended by the various State Advances Departments. It would be run on rigid lines, and the first, aim would be to secure the interests of the corporation. The speaker contended that the people were too generous hearted to want a reduction of twopence in the unemployment tax, and he hoped that the Government would not persist in taking it away. The Minister had admitted that no class was suffering as the. unemployed were suffering, and there was an opportunity to give them some increase in their funds, but the Government was making a hopeless endeavour to make itself popular at the expense of half-starved families. Mr AV. J. Polson (Stratford, Independent) said that the control of the banking policy was the basis of sound economic life. Government control was necessary, and it was absolutely necessary if the primary producer was to face the difficulties confronting him. Interest rates must be reduced, ne suggested, to three per cent on long-term securities.

Dealing with tho Mortgage Corporation. he could not imagine the State handing its lending departments to a private corporation. The State must stand behind the Mortgage Corporation until it was on its feet, but unless it was watched carefully the cream of securities would go elsewhere. Air P. C. Webb (Buller, Labour) said that the only State institutions that were in a flourishing condition'to-day were those that had been bitterly opposed when originated by eonservativetninded people of that day. He instanced the State Advances Department, the Public Trust, Government Life and State Fire Insurance Department and the State Mines Department. NEED FOR PLANNING. Mr Webb said that every step taken by the State showed that it could establish big industries without the support of a big bank. Therefore, he contended that the State should have had complete control of the Reserve Bank. He stressed the need for planning to get the country out of ifs difficulties. Ho said that there was no need for the poverty which existed at present. He dealt with events in the early war yeais and the developments leading up to his imprisonment for refusing to go to war. He said that the New Zealand Government was the onlv Government in the Empire that applied conscription to members of Parliament. Ho had lost his civil rights for ten years. Ho went out by tho front door, but ho had no feelings of animosity towards ths Government. The Government at that time spoke of finding work and providing for the returned men, but it was regrettable now to think that the Minister of | Pensions should live in the past. ' Mr Webb said that he would like to I see a scheme evolved that would get ! food into the homes of the people and j find work for the boys and girls. He i thought that all sides of tho House 1 should get together and inspire a message of hope for the people. Surely they eould alter the present state of affairs. There was no reason whv anybody should be in want in that young country where there was food in plenty. UNPLEASANT THINGS DONE. Mr H. M. Campbell (Hawke’s Bay, Goverment) said that the Government had had to de somj most unpleasant things, things that in normal times

most members would not have eared to stand up to. Those things had saved the country from a huge disaster. He believed now that the country was sailing along smoothly and that the next Budget would show a proper surplus.

Mr Campbell said that he would like to have seen a greater reduction in the unemployment tax. He appealed to tho Minister of Lands to consider remitting some of the rents that had piled up against the farmers, thus giving them some hope. Mr H. Atmore (Nelson, Independent) criticised the Government for not giving more consideration to old age pensioners. He said that the recent increase in the price of wool was due to buying by Japan, who wished to put her army into woollen uniforms. It would be better, he' submitted, if some of the nations would wear more woollen clothes. The Government, Mr Atmore said, seemed to be fighting against the advent of the machine and was trying to find manual work for boys and girls leaving school. The Government did not seem to realise that it was the consumer that had to be considered to improve the condition of the country instead of the producer. Without purchasing power people could not buy. Mr Atmore said that tho only sound basis for trade with any country was goods for goods, and if New Zealand could secure cheap goods from Japan in return for her produce, she should take them. Mr E. J. Howard (Christchurch South. Labour) said that everything the Coalition Government had done since it took office had been against the workers and in favour of the moneyed class. Mr I-’. Lye (Waikato, Government), said . lint the imposition of the wage cuts was justified, and as soon as the country ’s finances allowed it, 5 per cent of the cut was restored.

SILVER CONVERSION After 2 o’clock Mr. P. Fraser (Wellington Central, Labour) said that the Government was now doing what Labour said could have been done all along, and the country would have been saved much suffering. He claimed that the Auditor-General was “not up the tree’’ regarding silver conversion. He had reported on the facts revealed during his audit, and was entitled to the fullest respect. Last year over certain happenings resentment was shown and the Auditor-General was subjected to indignity he should not have ben subjected to. Unfortunately there was too much truth in his statements. The fact that this year conversion of silver showed a loss demanded a reply. New Zealand should have done as well as South Africa. Mr. Coates: We can’t do that. Mr. Fraser: Well, the Minister should say why not. Mr. Coates: I will give the facts. Mr. Fraser said it was a very serious matter to talk slightingly of the Auditor-General, although he should not be above criticism. Mr. Fraser went on to criticise the small farms scheme. He said that 10 acres was too small. Mr. Coates: I believe the 10-acre scheme has proved the best training ground of a lot of men who have gone to bigger areas. Mr. Fraser said he was only socking information on the subject. His quarrel with wage restoration was two-fold. In the first place it was not big enough, and in the secom' place it should never have been necessary. He was glad the restoration had been made retrospective, but would have liked to see restoration to higher salaries held over and full restoration made in old-age pensions and also restorations made jn other pensions. The debate was adjourned on the motion of Mr. Coates, and the House ’use at 2.30-