PARLIAMENT

Inangahua Times, 21 August 1931, Page 3

PARLIAMENT

I LVAXCLVL DEBATE

SUGGESTED NATIONAL GOVE Ed, MENT

REFORM UNHAPPY FAMILY

(Per United Press Assn.)

WELT.TXOTON', Last Xi K ht. Tho financial debate was resumed i; ■be .House fnlar.

An appeal for the formation of ? National Government was made by Mi Samuel, who urged that every mefcn be should be prepared to accept their *hare Q f responsibility for remedial measures for the financial rehabilitation. and if the Premier invited all Parties to co-operate, he felt sure that Labour would be patriotic enough to join in. Par.ry said the only two vords Mr .Samuel couTd use were fusion: and primage and he said ?t was obvious that relations with the Reform Patfy were strained, due mainly ro the attitude adopted by Mr Coates.. There was evidence of differences between? he front and back benchers' of the Party and the whole country was talking about it. Furthermore, former tried and true supporters of Reforfrn acre coming forward as candidate for the United Party at the general election because of a disagreement in 'he ranks of the Party. This was a sign of disintegration and rebellion. Mr Healey said the disturbog present was the time twyment afsletn and he criticised far ruers for buying American -implementf when superior New Zealand imple ; neirts could be purchased.' The Gov *rnent had done wonderful work in the •ireunistantes for farmers. Substantial assistance hail been given, in the of fertilisers; in fact, the for carriage of lime was forty Yhoti«'and aud the carriage of -rs ninety seven thousand. In addif * ou - eight-thousand-had been set aside for herd testing. He defended•• the main trunk railway, which, he said, would justify the expenditure. Mr .Jones said today the country was faced with *the necessity of makng up nearly four million pounds of klditional taxation. The difficulties ►f the situation wore admitted, trot 'lip Reform Party felt compelled to -ay that the -policy of drift which had Veu continued during the last three ears was an all important question. I When exports for the year totalled 539,500,000, a drop of £17,000,000 since 920. it apparent that it was 'Tupossible for the Dominion to carry »n with Government expenditure stand mg at £24,708,000, a sum in excess of J last year's expenditure, despite reduc- | tions in salaries, economies, etc., in- | stead of reducing taxation as urged by the Hon W. F. Massey. It must be | patent that a collapse was not far dis tant if the present course weer pursu v 3. Despite reductions in salaries and economies, the Government had not been abie to reduce expenditure, which included £1,100.000 fo-r unemployment subsidies. During the last three years, the Government had borrowed £32,130,000 and, apart from advance# to settlers and hydro electric ■works, it wae difficult to see that- the greater part of this amount could be interest bearing. In future borrowing, the Dominion should decide on essential works and the rationing of money.

The most alarmng feature of the ißudgot was that the Government appeared to think there was some inexhaustible source of revenue to meet taxation. Every further turn of the screw, however, was putting businesses and farmers out of aetion and increasing unemployment. In addition, there was no constructive thought in the direction of increasing production or effecting economies that would enable New Zealand to balance (he private and public budgets of the future.

The Postmaster-General, Hon Donald, said the present position Was un* donbtedly bad, but it would, be worse, next year and there was, therefore, need for great cohesion in the House. Members should give iSAO-rtf" constructive criticism of thfe' proposals than had beetf -heand. The necessity for all td face up «.r 'he position was plain ah3L it de-‘

pern.' • 4 oh how they faced up -to J if,‘ whether the Dominion would sink or swim. He defended the Id per cent cat and said had it not been made, many more businesses would have been forced into liquidation. It had been suggested that- the income tax should be made higher, but there was such a rhing as taking too much from the peo pie's incomes and he thought the tax was Vgh enough. It had also been suggested that the death duties be increased, but he would sooner see the income tax increased than that and death duties abolished. The death duty tax was a capital tax and would hamper investments. It had been sugested to him that an Empire Economic ■Conference be held at which, ref presentation should be given to all Parties in all the Dominions Parliaments, and he thought it such a good idea that he intended to pass it on to the Prime Minister. He considered the means taken this year to balau< e the Budget the best in the circumstances. He attributed the present troubles largely to the effect of mass production and the fact that the people’s wants had been supplied. Mr Howard: Millions arc hungry.