BUDGET DEBATE

Manawatu Standard, Volume LXV, Issue 226, 23 August 1945, Page 3

BUDGET DEBATE

ESTABLISHING INDUSTRIES. MR BROADFOOT’S ADVOCACY. (Press Assn.') WELLINGTON, Aug. 22 The financial debate was continued in the House of Representatives tonight by Mr W. J. Broadloot (Nat., Waitorao), wlio advocated the further development of hydro-electric, power with a view to establishing industries that could produce for all parts of the world. He suggested the production of nitrates, oxygen, hydrogen, and other products of a similar nature, lie also suggested the possibility of harnessing thermal power for the production of chemicals and more research into the production of flax fibre with a view to increasing its value. Discussing housing, he said Now Zealand had exported 18,000,000 feet of building timber to get a similar amount of Australian hardwood. That amount of timber would have built a thousand homes and by exporting it the Government had deprived a thousand families of their homes for many years to come. Why were we exporting houses to Australia when there was such a shortage in New Zealand, he asked. Did “the people on the other side of the water” hold a pistol to the Minister’s head? Jt was a sorry example of Government dealing with Government. Mr Broadfoot said there was need for more encouragement for those producing building materials and also a need for an investigation of alternative materials for building. He suggested it should be possible to build in concrete more cheaply than in timber, as well as saving future upkeep by the use of a more permanent material. STATE BANKING.

Mr F. Langstone (Lab., Waimarino; said New Zealand’s economy today was as well balanced 'as that of any country despite the withdrawal of 170,000 people from production for the Armed Forces. Discussing the taking over of the Bank of New Zealand, Mr Langstone said the question of State banking was agitating the minds of people all over the world. There had been much talk in New Zealand by the Opposition and by vested interests about bureaucracy. The fact was that we had a choice between bureaucracy in a very mild form of plutocracy, which was what those vested interests stood for—great amalgamations of capital. There was more bureaucracy outside Government controlled enterprises than iit them, and in addition State bureaucracy where it occurred in a democratic country was subject to many safeguards. An outstanding example of State enterprise in New Zealand was the Railway Department with 25,000 employees but with hardly a vestige of bureaucracy in it. The Post and Telegraph Department too compared more than favourably with similar services run in other countries by private enterprise. If for no other reason it was imperative to have a .State bank because of the size and complexity of State activities which themselves required banking facilities. Throughout the country Government departments had to do their banking with the Bank of New Zealand because there was no State trading bank available, but if the Rost Office confined | itself to the head office in Wellington and did its business elsewhere through private enterprise there would be a revolution. Another reason for a State bank was that the State alreadv had the prerogative of issuing legal tender money and it was only logical that the State should also control the issue of credit money as the two forms of money were closely inter-related. Mr W. 11. Gillespie (Nat., Hurunui) said the Minister of Finance was giving relict to secondary industry through a ; special depreciation allowance on buildings and plant. Was he going to give a | similar concession to primary indus- ! ’try? If secondary industry was entitled to it l lieu die farmer who produced 50 per ceut. of the wealth of the country should also receive relief. What plan had the Government for increasing production, he asked. There was no plan in the Budget, ami if the Government had one the farmers were entitled to know what it was.

Mr C. M. Williams (Lab., Ivniapoi) said the Leader of the Opposition had spoken like a man who did not expect his chickens to conic* home to roost. If tile Opposition were to become the Government some of the assurances given by Mr Holland would prove embarrassing. Mr Holland had complained of inflation, hut the only altcrna tivo to smite measure of inflation was to nay for the war entirely mil of taxation. Mr Holland could not advocate such a policy, however, for he complained about taxation even when « large part of the war expenses had stiff to be met. The debate was interrupted at 10.30 by the adjournment.