PARLIAMENT

Manawatu Standard, Volume IV, Issue 223, 21 August 1931, Page 2

PARLIAMENT

RUMOUR DISPELLED. CONDITIONS OF RAILWAYMEN. Per Press Association. WELLINGTON, Aug. 20. “When the House of Representatives met at 2.30 p.m., the Prime Minister, Rt. Hon. G. W. Forbes, rep.ving to Mr D. G. Sullivan, said the Minister of Railways had referred to the Railway Board the question of whether there was any truth in the rumour that the board intended to reduce tr.e hours of work of railwavmen and wages pro rata. The board had replied that it had not contemplated taking any action such as was suggested. BUDGET DEBATE. RESPONSIBILITY OF PARTIES. Continuing the Budget debate. Mr A. M. Samuel said the present conditions in New Zealand called for an effort on the pa it of everyone in the direction of rehabilitation. While the fusion of parties was not possible, there was no reason why all sides should not co-operate whole-heartediv. Mr W. E. Parry complained of the manner in which machinery had been used by its owners. He said that machinery, instead of proving a boon to workers by alleviating their tasks and improving their conditions, ban been employed in such a way as to force starvation upon many. The trouble was not created by the machinery itself, but by those in whose hands its ownership, rested. Mr Mcnns had criticised the system by which workers obtained radio sets, pianos, etc., on time payment, but Mr Parry considered that there was no reason whv workins people should not have all these things, if the owners of industry would only increase their employees' income in ratio with their added power to produce.

Mr Parry added that Mr Samuel had accused the Labour Party of complete insincerity, and at the same time as he was criticising Labour in such a severe manner he was also stressing the need for the co-operation of all sides of the House. Mr Parry characterised this as political humbug. Mr E. F. Healy said he agreed with Mr Parry that workers should have wireless sets, so long as they could afford to pay for them. He considered that one of the disturbing elements of the present day was the enormous amount of goods sold on the time-payment system. Mr Healy rererred to the number of American-produced goods used daily by the average business man, ar.d declared that the average New Zealand farmer was worse. The majority or farm implements were of American manufacture, and it was a matter for extreme regret that the market lor tarrn implements made in New Zealand had been lost to such an extent that they had been replaced in many instances by cheap machines imported from overseas.

Remarking that .South Island fullcream cheese had suffered enormously as the result of the overseas marketing of the standardised product of the North Lsland, Mr Healy said he was glad there was to be a return to fullcream cheese throughout the Dominion. Standardised cheese had been one of the greatest disasters to that industry in New Zealand. Mr Healy defended the construction of the South Island main trunk railway. AN ALARMING FEATURE. Mr D. Jones said the alarming feature of the Budget was that the Government appeared to think there was some inexhaustible source of private revenue to meet taxation when it should be clear that this was incorrect. Every’ further turn of the screw was putting existing businesses and farmers out of action and increasing unemployment while there was no constructive thought to increase production or effect such economies as would enable the Dominion to balance the private and public budgets of the iuture. People wouid not object to endeavouring to carry increased burdens if there was any ray of light in the future. He believed the time limit for new Customs duties must cause serious dislocation of business and asked who would import in the last six months or the period during which increased duties applied. A further disturbing iaetor iri the Customs regulations was that they would further upset the fiscal policy of the Dominion. The effect on existing industries and the necessity for giving protection where it would be most effective as far as unemployment was concerned had been abandoned and the question of obtaining revenue appeared to be the dominant factor. He considered it quite clear that the estimates of the Customs revenue in the Budget would not be realised and that the Budget next year would show probably as great a deficiency as the present one.

MINISTER’S DEFENCE. Hon J. B. Donald declared that at a sf/rious time like the present the country expected more cohesion and constructive criticism and would not approve of members simply flinging names at each other. Referring to taxation he said he considered the increase in the income tax was sufficiently high. However, he would prefer to see the death duties done away with and the income tax increased to make up for the loss. He agreed with Mr A. E. Jull that the principle underlying the death duties was not a good one. Mr Donald said it had been suggested to him that a comprehensive Empire Economic Conference should be called to deal with the problems of the day and the idea had impressed him as well worthy of the Government’s consideration. He considered if every party in the New Zealand House of Representatives and every party in all the other British Parliaments were to be invited to such a conference the pressure that would be brought to bear by such a conference would make the United Kinkdom and other British Dominions come into line and put into effect such remits as might be agreed upon. Great good might well accrue from such a course. Referring to the Matson Line, Mr Donald said he hoped- a little more discretion would be applied to the criticisms of the venture. He held no brief for the line nor had he any wish to see the Union Steamship Company injured, but the Dominion should not stand in the way of progress. Competition had already improved the service and he predicted that the time was not far distant when America would absorb more of New Zealand’s products than at present. Continuing, Mr Donald said he anticipated from the revenue returns already to hand that the Post Office account would at the end of the vear show the surplus that had been expected and there would be no need to draw on its re--86 The" debate was interrupted by the rising of the House at 10.30.

NATIONAL FINANCES

WRONG TREATMENT ALLEGED

The opinion that the Dominion would not come through the present depression in the way the Prime Minister believed was expressed by Mr D. Jones. He considered that the ostensible method of squaring the national

accounts would result in a serious position next year, when reserves c-ouli not be drawn on, and he said a glance had only to be taken ahead to see that the country was living in a state of false security as a result of the Government's financial policy. •'When the United Government took over office there were accumulated surpluses left by the Reform Party amounting to over £2.000,000,” Mr Jones said. “The accumulated surplus left by the National Government amounted to £11.500,000. Really this should not have been considered as a surplus, as it should have gone to assist paying the war expenditure that had oeen incurred. The whole of that surplus and additional moneys was used for the rep-atriation and settlement of returned men. The balance of the accumulated surpluses, amounting to £18,595,517, was accumulated by the Reform Party and was used for the repayment of debt, in addition to the public works fund. etc. The remainder of these accumulated surpluses has been mopped up by the deficits left by the United Partv with the execution of £2:5.000.

“In the year that we left office — andwe were only responsible for part of the year s expenditure—there was a deceit, but there were nearlv sufficient moneys earned in that year bv the Post OSce to meet it. and they should have been used for that purpose. In addition to jhese surpluses there was a number of very substantial reserves set aside by the Reform Partv. It would appear that practically the whole of these reserves will be'taken this year and used for revenue purposes to balance the Budget. "Next year, when the reserves are gone and the accumulated surpluses will have disappeared along the lines of policy which the Government is pursuing, it seems quite clear that they will he unable to bring a Budget down which has any hope of being balanced; indeed, they nave not been able to do so this year. We admit the difficulties of the situation—it would be a difficult time for any Government —but we feel compelled to say that the policy of ’’drift’ which has continued during the last three years has seriously aggravated the whole position. COST OF GOVERNMENT. “In addition to policy matters, the administration of th 6 Government is the all-important question of to-day. It must be apparent, when the exports for the year totalled £39,500.000 —a drop of £1”.COO.000 since 1929 —that it is impossible for New Zealand to carry on with a Government expenditure figure standing at £24,705,000. This sum is in excess of last year's expenditure in spite of the reductions in salaries and economies.”

The Government had spent over £5,000,000 in three years on railway construction work and additions to open lines. Its road construction vote had gone up from £705,000 a year to £1,475.000 per year, and public buildings from £605,000 in 1925 to £939.000 in 1931. Surely, in view of the serious financial position of the Dominion, a great deal of this expenditure 1s unjustified,” Mr Jones said. The Minister of Education had avoided every point of criticism as far as expenditure was concerned, and indicated that he was living in a world apart. Platitudes and theories were no answer to the criticism that had been levelled at his department. The Prime Minister had definitely stated his opinion that large savings could be effected, and the Minister's reply was the most disappointing speech of the present session. The Customs resolutions for increasing duties were for 15 months only. A time limit was a new custom, and must cause serious dislocation of business. Who would import in the last six months with such a sword hanging over his head? The effect of Customs revenue must be serious. Another disturbing factor in the Customs regulations was that they further upset the fiscal policy of the Dominion. The effect upon existing industries, and the necessity of giving the protection where it would be most effective as far as unemployment was concerned, had been abandoned, and the question of obtaining revenue appeared to be the dominant factor.

It was perfectly clear that imports of dutiable goods were likely to be less this vear than last by a considerable amount. The Customs revenuemight quite easily be £1,000,000 less than the amount estimated in the Budget. It was of considerable interest that the value of imports for the first quarter of the current year was £5.419.000, as compared with £lO,346.000 for the corresponding period of last year. The Customs revenuejor the quarter showed a decline of £77 0.000, and this hardly bore out the Budget’ estimate of a decline of only £1.300.000 for the whole year, apart from the new duties and primage. “BUDGET NOT BALANCED.”

“The Government is very insistent that it has balanced the Budget,” Mr Jones added. “I disagree with this statement. A Budget cannot be considered to be balanced in the true acceptance of the term when it Is done by taking all available reserves built up over many years and dissipating them in a single year. A Budget is balanced by the income for the year exceeding the expenditure. If, through unforseen circumstances, the income shrinks, then reserves can be drawn upon legitimately. “We have only to look forward to year’s Budget to see the. false security in which we will be living if we assumed that this year's Budget is balanced. Next year the £1 140,000 of. reserves will not be available, ihe funded debt payments through President Hoover’s proposals, amounting to £870,000, will probably be available, but Washington has notified Britain that these suspended payments will be spread over 10 years, and next year we must begin to meet our liability. If as I estimate, the deficit next year will run to probably a similar amount to the present year, unless immediate economics are effected, then we realise the critical financial position that will arise in 1932. “I think the House and the country should face the fact now that if we drift on as at present, we are bound to come up against a dead-end next year and be forced by circumstances — as Mr Scullin and Mr Lang were forced in the Commonwealth—-to take drastic remedies, and we shall be far less able to do it 12 months from now.” legislative council.

A BRIEF SITTING

WELLINGTON, Aug. 20

When the Legislative Council met to-day, Hon. C. J. Carrington gave notice to ask the Leader of the Council if he would take steps to ascertain the names of the Communists who were leading the unemployed and spreading insidious propaganda. The Council adjourned until Wednesday next.