National Economy

Manawatu Times, Volume LV, Issue 6839, 21 April 1932, Page 7

National Economy

i Important Amendment to Bill RENT REDUCTION CLAUSES MODIFIED Per Press Association. WELLINGTON, Last Night. In the House of Representatives today urgency by 40 votes to 16 was accorded the committee stage of tho National Expenditure Adjustment Bill. Et. Hon. G. W. Forbes intimated that an adjournment would be taken on the passage of the section relating to public servants’ salaries. He stated that amendments would be introduced to remove a number of anomalies in the bill. Among them was one which would remove tho provision that the ann’ual increments in tho public service should not bo granted this year. It had been pointed out that this provision would operate much more harshly against, some members of the service than against others. The leader of the Oppositin (Mr. 11. E. Holland) expressed gratification that this concession had been granted. He further suggested the elimination of the pensions reductions and, failing this, that some age limit should be fixed beyond which the reduction of old age pensions should not apply. Mr. Forbes stated that there was no provision in the pensions system for differentiation on an a.go basis.

Mr. <T. McCombs referred to the section of the bill relating to rent reduction and pointed out that the reduction would not operate unless the property owner received seven per cent, interest on the valuation of the property, over and above the amount expended on rates, maintenance, etc. Ho considered this would mean that in many cases there would be no reduction at all. Hon. W. Downic Stewart: “That part of the bill is being modified.” Mr. Forbes explained that an amendment would be introduced later to deal with this aspect. AYhile it was considered reasonable that a property owner should receive a fair return for his investment, it was realised that there were special circumstances at the present time, and an amendment would leave it for the Court to decide whether the question of return on investment should be taken into consideration in relation to the reduction in rent. Mr. McCombs said this treatment was still in striking contrast to the manner in which the Government was dealing with workers, who wore not being given the right to appeal to the Court. Definite reductions in rent and interest constituted a logical corollary to definite reductions in..wages, because although such a course was perhaps not quite moral, it was justified on the principle that two wrongs went some way towards making a right. Mr. C. A. AVilkinson said the blot on the bill was the exemption of the banks from interest reductions. AVliile people who in many cases would have to borrow from the banks wero being subjected to a 20 per cent, reduction in returns on their investments, the banks were being allowed to escape with a voluntary arrangement to reduce their rates by 74 per cent. TYio House adjourned at 5.30. Amendments to the bill were introduced by Governor-General’s message when tho House resumed at 7.30. Mr. Forbes said these amendments related to part I of the bill. A good many amendments affecting other portions of the bill would bo brought down later.

Among the alterations proposed in connection with part I was that which ho had mentioned during the afternoon, namely, the restoration of annual increments in the public service. It was also proposed to bring board and lodging allowances within the meaning of the term salary under the bill, and to enablo Crown houses to be treated on the same basis as other houses with re-, gard to rent reduction. Tho amendments were referred to the committee on the bill.

The short title of the bill was still under discussion until midnight, when it was passed by 41 votes to 24. To enablo a Vote to be taken on the reduction of wages and pensions Mr. P. Fraser moved to strike out parts I and It of the bill. This was defeated by 41 votes to 2S, Messrs. Atmore, Black, Harris, Rushworth, Samuel and Wilkinson voting with Labour. Replying to the leader of the Opposition, Mr. Forbes said that the amendment to the clause defining “salary” would mean that the allowance in respect to board and lodging would be included in the basis on which the cut would bo made. It had first been proposed to exclude this allowance from the operation of the reduction, but it had been pointed out that this would result in an inequality. The House was still sitting at 2 a.m.

Unemployment Taxation MINOR AMENDMENTS Per Press Association. WELLINGTON, Last Night. When the House of Representatives met at 2.30 p.rn. to-day minor amendmnets to the Unemployment Amendment Bill were introduced by GovernorGeneral’s message and were accorded urgency. Explaining the proposed alterations, Rt. Hon. .T. G. Coates said the wages tax was to bo imposed on tho basis of Id. for each 1/8 of wages, instead of 3d. for every 5/, as originally stated in the bill. Another alteration in the wording made it perfectly plain that rent could be paid as assistance out of the unemployment fund. There had been requests to grant exemption from payment of the emergency charge in the case of young people, and an amendment exempted those of 16 years of age or under.

Mr. J. McCombs said ho was sorry the Minister had not seen fit to exempt women from the payment of the wages tax until such time as tho board provided an adequate sehemo for the relief of unemployed women. Tho leader of the Opposition (Mr. 11. E. Holland) said that exemption on the basis of age would not be nearly so fair as exemption on the basis of wages or fle ppjated out that some

people under 16 had fairly large incomes, while on tho other hand many people well over 36 were receiving extremely low wages. Mr. Coates pointed out that the exemption applied to wages and salaries, but not to incomes of young people under 16 years of age. Labour members urged that women receiving £1 per week or under should be exempted from the payment of the tax.

The amendments were adopted. Arbitration Amendments The report of the managers who conferred with the managers from the Legislative Council concerning points in disagreement on the amendments to the Industrial Conciliation and Arbitration Bill wore submitted. Hon. A. Hamilton said the change made in the clause giving the right to women workers to have their wages fixed by the Arbitration Court was a slight one, making the Government’s intention quite clear and giving full protection to the wages of all women workers in all unions. Tho provision for tho bonus system of payment of wages had been struck out. The report was agreed to.