The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 11, 1930. THE BUDGET DEBATE.

Hokitika Guardian, 11 August 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 11, 1930. THE BUDGET DEBATE.

Tine Budget debate lias been brought to its dreary end. Very little was accomplished by the flow of eloquence which will fill many pages of Hansard, a»d cost much to reproduce for J h' 1 l ' n nefit qf the readers of that publication. The Government survived an auveivse motion moved by the official Opposition, thanks to the supporth of the Labour Opposition. There was the usual attack from the opponents of the Government on the policy of the Government, but very little offered of a 'constructive character. Mr Forbes made it plain from, the outset that there was a necessity to raise more revenue, The causes leading up to the shortage are obviously plain yet despite that fact, members rose one'after the other from the Opposition benchtyj and criticised without producing a policy to replace l the one so much abused. Mr O’Brien, Member for Westland, although he voted with the Government on the test division, in his speech last week, spent a* good deal of time in traversing the Government pronosalts to raise the moniey needful to carry on the sound Government of the country, Naturally with fresh taxation some one has to be hit. Mr Forbes frank(v said hits proposals aimed at‘spreading the taxation over the community "ts a whole. Probably if he had not done that, and confined the taxation to a particular section, he would have been told he was favouring one class against another, ,and that it was his duty to he fair and spread the burden ! Mr Forbes is long enough experienced with Parliamentary ways to know whatever had been his policy, it would have been (subjected to the strong criticism of his political opponents. Mr O’Brien’s defence of the poor people in the circumstances, dees not. sound very convincing, particularly when l;e deplores the extra taxation for cigarettes, amusements and racing. If it be true that the “poor” man is the main prop of racing, then if. can lie well understood why he is “poor” when we contemplate the thousands of pounds passing through the totalisator week by week. A poor man, or any army of men, it poor, could not support racing financially op substantially as it is being done. The taxes Mr O’Brien questioned may

co»«iderpd luxury taxes, and as such the general view will be that the Government has taken the proper tuarso in turning attention to such, in preference to necessities which are the (support of the poor man Mr O'Brien. feels for. Apropos of the remarks hv the Member for Westland, Mr O’Brien can hardily realise tiie fact that Racing] Clubs now pay 3s in the £ debenture tax, yet lie would increase that levy! Racing tiluins as a rule cannot borrow at a very favourable! rate unless there is a gilt-edged security. Seven and eight per cent, is probably the lowest borrowing rate. Yet on interest paid on that scale, there is a further penalty by the Government of 3s in the £, so that for every £8 of interest paid on debentures, the Clubs have to pay an, additional £l, 4s to the Government by way of special taxation. To abolish this would he reasonable; but Air O’Brien would increase the levy! There was one declaration by ou,r Member which was concrete—that was to abolish unemployment by seeing that everybody wap employed in industry. Unfortunately he did not explain in detail how this was to he done. Certainly a large duty on timber would help keep the foreign article out, and assist in a measure, but industry—without the market—wo)ild be an economic loss, and no country (or no individual) could maintain it. Much could be done in opening up Westland which Mr O’Brien is now advocating consistently, but of course it would not solve the whole problem of unemployment. At the same time Mr O’Brien will have: all possible local support in his endeavour to induce the Government to open up available country for settlement, and to' provide means for the export of more of our timber, if the market for the commodity enu be, obtained, It does not appear within the province of the Labour Government either at Home or in Australia, to grapple effectively with 'the unemployed • finest ion, and there must he delay in this country in; overcoming the difficulty. But here a. praiseworthy effort is being made, and it is at least satisfactory that the Government proposals have the countenance of the Labour Party, if not their' whole support. In the proposals' now under review, no, doubt Mr O’Brien will endeavour to weave in hi/j ideas on the general -situation, and if able to do so even in a measure, he will, have done good service. Mr Forbes was able to wind up the Budget debate, with cheerful note indicating his own feelings that lie was enjoying,, the confidence of .the public in the matter. The new Government has made its beginning on gpod lines, and tbe feeling up and down tho country w to give it a fair trial. Neither party by its criticism said anything in the way of a revised p'olicy to replace that of the United Party, and for that reason it would appear Mr Forbes may proceed forthwith with the legislation affecting his policy proposals. For that reason Parliament has a busy fortnight ahead of R*