PARLIAMENT

Manawatu Standard, Volume LV, Issue 257, 27 September 1935, Page 11

PARLIAMENT

PBEMIER DEFENDS GOVEBNMENT

ECONOMIC POLICY JUSTIFIED

Tlie Budget debate was continued in the House of Representatives yesterday, wlien references were made to' Hon. W. Hownie Stewart’s recent explanation of his attitude _ toward the Government and the old question of exchange policy. The Prime Minister vigorously defended the Governments remedial measures to offset the economic depression and explained the necessity for the higher rate of exchange.

THE BUDGET DEBATE. FORMER MINISTER CRITICISED. MORE ABOUT EXCHANGE POLICY. Per Press Association. WELLINGTON, Sept. 26. . In tlie House of Representatives this afternoon the debate on the Financial Statement was resumed. Mr J. A. Lee referred to Mr Doivnie Stewart and. said if they wanted to do the right thing they must do the opposite to that which he advised. He said it was his policy that scuttled the Coalition ship, and. then ho “screamed at the twin skippers from a, dinghy.” Mr Lee went on to deal with unemployment and said the House had been told that the number of unemployed was decreasing, hut ho believed the figure quoted did not include a number who were debarred from registration. Despite predictions regarding the return to prosperity 7000 more persons left New Zealand in tlie last three years

lapsing or being abandoned, for more than half the farmers being unable to pay either their interest or their principal and for more than half the returned soldier settlers being in arrears with tlieif rent and being in an impossible position. Mr Armstrong said that as Britain was turning her attention to agriculture New Zealanders should endeavour to increase the consumption of their own produce. The value of New Zealand manufactured goods was £32.000,000, while the value of dairy products was £20,000,000, so that New Zealand had reached a stage when the manufacturing industry was of more importance and was producing more than the dairy industry. The total production of New Zealand was valued at £98.800.000, of which £41,000,000 was exported. The total number of persons earning a living from lire primary industries was 115,500. or only 20 per cent, of the population. PRIME MINISTER REPLIES.

than arrived in it. There may have been a bright spot or two in the Budget, including the restoration of pensions, but he was of the opinion that later on the “burnt-out soldier” would have to be treated in the same way as tlie man totally disabled at war and given a' full pension. Mr H. M. Campbell congratulated the Government on its very satisfactory Budget. He thought that as Bri-i tain was New Zealand’s best customer ■ some attempt should be made to steady , imports from Australia which took • S ractically nothing from New Zealand. | [e thought the men on sustenance should be given every encouragement, to get off it and help themselves. They j should be examined, only every month ; or two, not every two or three days, i He considered the time for a revalua-; tion of Grown tenants’ land was over- j

The Prime Minister (Mr Forbes) said it was thought that definite signs of success would be hailed with satisfaction by all members of the House, but that did not seem to be so with the Opposition. The Opposition seemed to think that everything that had happened was the fault of the Government and that nothing that occurred outside seemed to have anything to do with it. He contended that the reduction or _ restoration of wages had no connection at all with the rise or fall in the number of unemployed. He reviewed the effects of the depression and said the fall in the national income was very considerable and very serious. It fell' from £150.000,000 in 1928-29 to £98,000,000 in 1931-32, and that was hound to cause great distress. In the same period exports fell from £50,000,000 to £34,000,000, yet some members said that would have no effect on tlie Dominion. The improvement in farm prices was immediately reflected throughout the country. The Government had been charged with having broken contracts and done other drastic things. The income of Britain during the depression had dropped 15 per cent, Canada 46 per cent., Australia 23 per cent., South Africa 21 per cent., and New Zealand 35 per cent. Something had to he done to come to the assistance of the primary producers and the Prime Minister outlined the steps the Government took in the way of a reduction of interest rents and other things. He asked if, in view of the fall of income by 35 per cent., they were excessive. He thought the action was very moderate. The reduction in wages had enabled many employers to retain the services of employees who would otherwise l have liad to he put off and he comI pared the reductions New Zealand liad made with those of other countries. Every country, in the world had had to deal with its currency and the Government had been told that by raising the exchange it had forfeited all reputation in regard to finance. He claimed that the stability of New Zealand’s finances had been achieved and that counted a I great deal in Britain. New Zealand’s prosperity was closely linked with that of Britain, and it was pleasing to see that that prosperity was returning and that Britain would be able to show a substantial surplus and restore many reductions that had been made. RECORD DEFENDED.

due and the men who had struggled | along should he given some relief. IMPORTANCE OF HOUSING. | Mr 'F. W. Schramm said the most 1 important problems Before the country to-day were housing, unemployment: and the question of national superan- j nuation. health insurance and pen-; sions. There was great need, for a ' housing scheme in New Zealand. Many | people were being evicted from houses and the private landlord could not be expected to carry tenants on his back as he had rates and other payments to meet. The Government, in conjunction with City Councils and other local j bodies, should adopt a proper housing: scheme at once and he hoped, that the matter would receive more attention | than the mere mention in the Budget. ,

If the Government spent .millions of , pounds it would be money well spent. He hoped the 7\ per cent, restoration , of salaries would not affect the police as adversely as the last restoration. Speaking generally, the Police Force , was overworked. It was an excellent ] force and compared favourably with any force in the world. It was about time more police were appointed and constables, detectives and sergeants given more leisure time. He hoped before the session ended the Government would bring down a measure providing that school children should ho given half a pint of milk daily. Mr A. Harris thought the people would appreciate the absence of win-dow-dressing from the Budget. He contended that few people would think it was framed with the object of catching votes. He would have liked, to \ see some substantial reductions in taxation as was promised last year. He

predicted the year would end with s surplus of £1,000,000 as Treasurers, had a happy knack of overestimating expenditure and underestimating revenue. He thought the Minister of Finance would have been justified m adopting a boldei coiiise in regard to the remission of taxation and suggested relief should be given by the abolition pf the primage duty on llntisli goods. New Zealand was probably the highest taxed country m the world. 'There was no reason why it should be so. A greater reduction in the unemployment tax might have been exT. Armstrong said that in 1928 there were 10,227 apprentices, while this year there were 3500 or 7000 less, and while the avenues of employment were becoming less the male population was increasing. He blamed the Government for the loss of savings of the workers, for a larg® number of insurance policies either

The fault with Labour Governments was that they were unable to withstand pressure from organisations outside Parliament and their finances consequently suffered, Mr Forbes added. He claimed that the Government’s record in regard to prudent finance was equal to that of any Government that ever sat on the Treasury benches. Labour had said that what the Government was doing was to secure votes, but what was Labour doing? Every time the Government gave a new benefit Labour’s bid went a little higher. He contended that if an attempt were made to carry out Labour’s policy the country would soon be in a state of bankruptcy. Referring to Mr Downie Stewart’s speech at Dunedin earlier in the week, Mr Forbes said he never knew that the pledge he was alleged to have given was the cause of Mr Stewart s leaving Cabinet. Mr Stewart had never told him why. Mr Forbes proceeded to outline the reasons for raising the exchange and said two months before the rate was raised he told a deputation that the Government did not intend to raise the exchange, but an investigation was made and it'was then found that the best method of dealing with the situation was to raise the exchange. At the time lie made the statement to the deputation it was his firm opinion that the exchange would not be raised, but he gave no pledge or tied himself to any deputation. Had he given a pledge he would have adhered to it. Mr It. Semple said Mr Forbes had said that Labour, if it readied the Treasury benches, would be influenced by some organisation outside Parliament, but surely the Prime Minister should he the last to make a statement like that. In the four years ol the present Parliament not one measure had originated from Cabinet hut had been suggested by commissions or boards. Mr Semple continued to criticise the Government for subsidising a wealthy insurance company and also contended that the inference to be taken from Mr Downie Stewart’s speech at Dunedin was that ho was outside Cabinet looking in but lie would like to he inside Cabinet looking out. That was why he wanted Cabinet reconstruction. Mr Downie Stewart referred to the Prime Minister’s closing remarks con cerning him and tlie.raising of the exchange. He said the simple question was whether the Prime Minister did, at or about that time, give an assurance that he would not interfere with the exchange. Ho read a number oi quotations from those adversely affected by raising the exchange, which alleged that the Prime Minister had given an assurance that the exchange would not be raised. Mr W. E. Barnard sajd most of the big tilings in the Budget were to happen after the election and they were dangled before the eyes of the electors in the hope that they would accept the Government at its face value. The actual plans for this year were fragmentary compared with tho large pro-

mises for next year, and lie hoped the Government would not be in power next year to give effect to them. He urged the completion of the NapierGisborne railway, and said it would offer suitable work for tlie unemployed. The debate was adjourned and the House rose at 11.55. FARM'TRACTORS. EXEMPTION FROM TAXES SUGGESTED. Mr R. W. Hawke asked tho Minister of Transport (Rt. Hon. J. G. Coates) whether he would exempt from all taxation farm tractors used exclusively. fpr the cultivation of the soil. Mr Coates replied that at present all farm tractors were exempted from taxation provided they did not use tho roads. The position of farm tractors which did use roads had changed, in recent months, but.it was not due to any action taken by the Government. Until this year successive Governments had arranged with the Registrar of Motor Vehicles that farm tractors used solely in connection with the owner’s farm would be permitted to use the public roads to proceed from one part of the owner’s farm to another for distances not exceeding one mile. Provided these conditions were complied with there was no obligation to register or license a tractor under tlie Motor Vehicles Act. In April this year the Controller and Auditor-General had queried the validity of this arrangement, and it was necessary therefore to review the position of such tractors. In May last an Order-in-Council was issued by which tractors used on roads only in connection with the owner’s farm work were permitted to traverse roads to an unlimited extent provided _ they were registered. at a non-recurring cost of £1 and also insured against third-party risks at an annual cost of 10s premium and 2s for “E.” plates. By this insurance tho owner would be protected against third-party claims for personal damage duo to his tractor being used negligently on roads. A refund of the road tax on motor spirits used in all agricultural tractors may be claimed irrespective of the manner in which they aro used.

UNPAID NATIVE RATES. SERIOUS POSITION ON EAST COAST. The seriousness of the Native rating question along the East Coast was emphasised by Mr H. M. Campbell (Govt., Hawke’s Bay), when speaking in the Financial Debate in tlie House of Representatives yesterday. Mr Campbell said a large area of land was held by Natives who paid no rates at all, which meant that a heavier burden fell on the Europeans in the district. The Maori was a very fine fellow, but he should be induced to recognise his responsibilities. Mr Campbell said he did not see why it should not be possible to exercise some budgetary control over the affairs of the Natives so that those who could pay would have to do so. Allowing the matter to drift was not in the best interests of the country or tlie Native settlers themselves.

SHIPPING COMPETITION. ACTION URGED IN UPPER HOUSE. The Legislative Council met at 2.30 p.m. . The Imprest Supply Bill was passed. Speaking on the second reading of the Shipping and Seamen (Safety and Load Lines Conventions) Bill, Hon W. Perry urged that in the event of the Imperial Government not taking action in the matter _ of meeting competition from American subsidised shipping New Zealand and Australia should take the matter in hand to protect their own shipping in the Tasman. Hon. R. Masters, Leader of the Council, replying, said that in view of the fact that the matter was still under consideration by the Governments concerned he was not prepared to discuss it at the moment. At tlie request of Sir Francis Bell the Bill was referred to the Statutes Revision Committee. The Council rose at 3.25 till October 1.