PARLIAMENT

Hokitika Guardian, 12 July 1940, Page 6

PARLIAMENT

BUDGET DEBATE,

fPor Press Association —Copyright)

WELLINGTON, July 11. The financial debate was continued ii the House this afternoon by Mr W.

A. .Bodkin (Nat., Central Otago), wiu> said that this Budget, of ninety-eight millions, was a. record, especially loi this country with its population of one and a half million people. Speaking of overseas credits, he characterised them as “the first line of our economic defence.” Before airy thing crastic was done by the Govor nuonv, ni this latter connection, he irg at the ■ Minister of Finance should sees? the ,o----"oi ' tafion of the holders oi o verse «.s

im estments who, << avas sun. w'mild ; e < lily too pleased to grant ii Mr E. L. Cullen (Govt., Hawke’s Bay) said that, despite Opposition criticism, this Budget had boon ur’l recei/y.l in the country. Mauv people had expected worse, includi ig many of the followers of the National Baity, v.ho had been pleased to heat .what a, moderate Budget the Minister of Fi- ■ nance had to read.

Mr E. B. K. Gordon (Nat., Rangitikei) charged the Government with lack of a progressive land settlement policy. He considered that many of our unemployment problems had been, due to this cause, and that the unemployment problem would never be conipfetely solved until a comprehensive land settlement policy was adopted. . Tile * debate was interrupted by the adjournment at 5.30 p.m. . Continuing the debate, when the House resumed at 7.30 p.m., Mr Gordon asked the Government to state its policy regarding skilled farm labour, either in regard to labourers volunteering or those being called up ior war service. There was definite need for these men. being retained on land he said.

The Minister for Public Works, Hon. R - . Semple said that criticism in regard to Public Works had not been levelled so much at the Department, as at the Public Works expenditure. It had been suggested, that railway expenditure could be cut down. The Minister referred to the four mam lines now under construction.

■The expenditure on the South Island Main Trunk before 1936 was £535,200. Since then £1,651,760 had been spent, ft would cost £935,340 to complete .the line. - ■■ ' :■■ ■ .

Prior "to.. 1936, the expenditure on •the Westport-Inangahua line, 1 ., said. Mr/Semple was : £525,200, and since then fhe expenditure was £.499,460. The total expenditure on. all these lines to' date was £5,832,290, and the ■estimated amount required to complete them all was £.1,619,440. The approximate times' when these lines would be completed were:—Dargaville line and Gisborne line, towards Trunk Line, 'in the middle .of 1942; Westport-Inangahua line, in the middle

of 1.941,. Mr - H:-Atmore son) urged the use of public credit for internal purposes in New Zealand, and also for an issue of credit in order to replace the purchasing power that is being removed by?..the/:.extra taxation. "'"MV Atmore ' also ' contended' that 'the soldiers’ wage of 7s 6d er day was " ghypadequ ate wage. - Mr C. W. Boswell (Govt., Bay of Islands), . referred to the taking over .of /overseas 'Securities'’-by; the Government.

The debate was . interrupted by the adjournment at 10.30 and the House rose until 10.30 a.m. to-morrow. •' NEW BILLS. Legislative effect is given to some

of the taxation proposals in the Budget in the Land and Income Tax (Annual) Bill, and the Land and Income

Tax Amendment Bill, which were introduced in the House by Governor’s message to-night. The Annual Tax-

ing Bill concerns only the levying of rates on land, and the income tax for the ’ciirreht year, while the amending Bill makes various alterations in the taxing procedure. The . latter measure sets out new procedure in the levying of income tax, -which will be in steps, increasing byy threepence in the pound for every taxable hundred' pounds and gauging. from 2 : s 6d..t0 12s: . The .normal exemption of fifty pounds for each child is to be extended to apply to the incomes of any persons becoming the guardians of children brought, to the Dominion under any Government scheme. Another clause provides that land tax is to be deducted, for income tax purposes, in the year in which it is assessed.

Provision is made to avoid injustices in certain cases where an unduly low standard of values for, livestock has been adopted. Amendments are made to the definition of dividends. Provision is also made for the payment of income tax by instalments. The Bills were read the first time. TO-DAY’S SITTING. WELLINGTON, July 12. The House met at 10.30 a.m. Mr,Boswell continued the Financial Debate. The Leader of the Opposition, said Mr Boswell, had expressed the opinion that if an excess profits tax were 'imposed, the incentive to make excess profits would disappear. Personally, said Air Boswell, he did not agree with this, and considered those in a position to make excess profits would gladly continue their industry, because they know that in doing so they were contributing to our war effort. He advocated a further develoument of the Ivauri Gum indus-

try, I and better loading facilities for ••lie Far-North. ...... Mr Boswell also expressed resentment at tlie charges of subversion levelled at teachers throughout New Zealand. One of the worst offenders was the member for Tauranga, who is reported to have said the the universities and schools were rotten with Communism and disloyalty This was a terrible thing to say, and was cruelly incorrect. The way ! to deal with subversion was to report the matter to the police and leave it at that. He also had been asked, he said, why Government. did not gaol Communists. There was no reason why it should. There were many fine people among Communists, and as long as they, did not engage in subversion, they were entitled to their ideas. Mr Goosman said we had no room for Communists in New Zealand. 'Mr Goosman said that the Government asked people to save, but' lie would ask what example it was showing people in this direction. Mrs Stewart urged that when the war was over let us not forget the lessons wo had learned, and spread abroad the spirit of brotherhood, so that war could never again come upon us. Mr Doige said Mr Boswell’s defence of Communists was astounding. It was contrary to the wishes of the people of New Zealand, and the ideas for which our soldiers were fighting. The debate was interrupted by the adjournment at. 1, p.m,