Will Slump Follow Prosperity ?

Manawatu Times, Volume 62, Issue 258, 30 October 1937, Page 5

Will Slump Follow Prosperity ?

'’Nothing Worse Than to Believe That”

Estimates Discussed in the House

Per Press Association.

WELLINGTON, Last Night. The House of Representatives wi’ lorning proceeded with the consideration of the Estimates. The Leader of the Opposition, the Hon. A. Hamilton, drew attention to the fact that the State Advances Department was not mentioned jn the Estimates. It was a large department, controlling £51,000,000 and with nearly 1000 employees, pud the House had nothing to do with its accounts. The Minister of Finance, the Hon. W. Nash, said that the whole of the accounts could He discussed by the House on the presentation of the State Advances Corporation's report. Mr. Hamiltn pointed out that under the Electoral Boundary Commission’s report the South Island lost a seat in the House to the North Island. The Soutli Island electorates now had a quota of 380 persons more than the North Island electorates, and they were bigger electorates. He suggested that the Government should give effect to the recommendation in the report, which .vould obviate the necessity for the outh Island losing a seat. “You’ll Soon Find Out.’* Mr S. G. Holland (Nat., Christchurclr North) (said that there had been a iTemendous increase in Government expenditure, and he thought it could be reduced without reducing social services. Mr J. A. Lee (Govt., Grey Lynn) said that the last Government’s cuts in expenditure had put thousands of New Zealanders on the unemployment market. The Rt. Hon. G. W. Forbes contended that if the past Government had had £27.,500,000 extra income, as had tho present Government, it would have been able to .do something too. Mr A. G. Richards (Govt. # Roekill): Where did the money come from! Mr Forbes: You’ll Boon find where the money has come from when the next depression comes. There were very few people in. the Dominion who believed that another depression would not come, Mr Forbes added. Mr Richards: You are a splendid example of pessimism. The Minister of Finance, Mr Nash, said that there was nothing worse for the country than to believe that a depression must follow a time of prosperity. Although Mr Forbes had a most pleasing personality, by his statements in the last Parliament he had helped to accentuate the depression. He had even taken pride in the sacrifices being made p.nd his own courage in facing them and the consequent inevitable unpopularity. The present Government had never affirmed that happenings overseas would have no effect on this country. Mr H. S. S. Kyle (Nat., Riccarton) attacked the Government’s guaranteed-pric-e scheme and also its “alleged” assistance for wheatgrowers. With regard to the latter, he said that tho £150,000 for assistance to w’heatgrowers was mostly going to millers. The Minister of Industries and Commerce (Hon. D. G. Sullivan): You’re “wonky.” (Laughter). Mr Holland said ho thought that ft great deal of economy could be effected in travelling expenses, which cost the Government £350 a minute for every working day in the year. Mr Sullivan referred to the past Government’s economies, which, he said, have been effected by dismissing employees and creating unbelievable hardship in many soctiuns of the community. The "Kelly Cang." With reference to assistance to wheatgrowers, Mr. Sullivan stated that if tho Government had increased the price of a loaf by a half-penny it would have cost the country £300,0(K), whereas the assistance of £150,000 for the increased price of wheat to growers had saved th© country £150,000. Mr. Richards defended the Minister of Industries and Commerce for his policy concerning wheat and flour. Some members of the "Kelly Gang" iu Auckland had deliberately attempted to sabotage the wheat and flour policy, but the bakers in Auckland had never been on a better footing than they were to-day. He would even challenge the millers themselves to show tliut they faere not in a prosperous condition. Mr. H. G. Dickie (Nat., Patea) asked if retail prices of butter were to be fixed in the Dominion as well as wholesale prices. Fixation of retail prices bad been made in the case of petrol, and they might in connection with butter. Where Can it be Cut? In replying to the Opposition suggestions regarding savings in travelling expenses, the Minister of Education, the Hon. P, Fraser, said he would be very pleased if tfie Opposition could point to any particular items where savings could be effected in this direction so that he could divert the money to the furtherance of education. Mr W. J. Broadfoot (Nat., Waitomo), said, with regard to land development, that it was time the men who had carried out that development were told when they were to receive their titles and prices for their properties. A definite promise had been made them that they would receive their titles, and it was time the Minister announced if he intended to keep that promise. Mr C. M. Williams (Govt., Kaiapoi),) defended the travelling expenses of officials of the Agricultural Department,’ who, he said, had done valuable work! for the country, which was well repaid for the expenditure made in this direction. Mr. Kyle stated that, while a million and a-half was being spent on sustenance, nearly a million had been spent on the importation of machinery for Public Works. Nearly all of it had been spent on American machinery. Mr. Fraser: Not a ppenny was spent on American machinery where the sam(

machines could have been bought in i Britain. I Mr. Kyle: It would have been better if some of the men on sustenance had been on tho end of a pick and shovel. Prime Minister’s Reply. The Prime Minister, the Rt. Hon. M. J. Savage, said that unless some particular item had been mentioned it was very difficult for him to reply. Referring to travelling expenses, he said that he supposed the £ISOO which had ; been granted him on his recent trip to | the Old Country was included. Of that : sum he had brought back about half, which would be paid back into the Treasury. The reason why the State Advances accounts had not been mentioned in the Estimates was that tho previous Government had taker, then*, off. Dealing with the Electoral Boundary Commission’s report, Mr Savage stated that the South Island had no need to worry over the loss of a seat in the House. The present Government was ■ there to represent the whole of the Dominion and would not favour the North Island at the expense of the South. He denied that he had ever made a statement that the cost of government would be reduced, stating that if there was more work to do there should be more people to do it. The House adjourned at l p.m POSITION OF WHEAT FARMERS * ‘ GRANT A STRAIGHT-OUT SUBSIDY” WELLINGTON, Last Night. When the House resumed at 2.30 p.m. consideration of the Estimates was continued. Sir Alfred Ransom expressed the opinion that many items in the public expenditure could be eliminated without harm to the country. The whole of the estimates of expenditure, he said, were in the direction of sterilising the wealth of the Dominion. Rev. A. H. Nordmeyer said the fact that the Prime Minister had returned half the expenses of his tour to Britain to the Treasury was unprecedented as far as similar tours of other Prime Ministers were concerned. It was no wonder, he said, this fact had got under the skins of the Opposition. He thought if Mr S. G. Holland were sincere about his suggestion for a reduction of travelling expenses he might give up his own travelling privileges and remain in Wellington for tho whole of the session, instead of returning to his electorate now and then. Mr W. P. Endean asked when the Government was going to keep its promises to reduce the exchange rate. He criticised the increases in Government expenditure and asked what the Fisheries Commission had cost the country. Mr J. G. Barclay said the Opposition had been expressing great concern at increased Government expenditure, but forgot to look at the legacy of overseas debt left the Labour Administration by past Governments. Mr R. A. Wright said there was a rumour that £400,000 was to be expended on the erection of a conservatorium building in Wellington. He agreed that a handsome building should be erected, but he thought the expenditure of £400,000 was overmuch. Mr S. G. Holland contended that, if £650,000 were borrowed from the Reserve Bank for tho assistance of dairy farmers, it was equally proper that money should bo borrowed from the Reserve Bank to help the wheat farmers. The wheat farmers were receiving sirpence per bushel more for wheat this season than last, but he considered it was not enough. He pointed out that the farmers were now receiving for second grade wheat more than for first, grade, and the wheat control scheme, he considered, was not the best in the world, as had been contended by the Minister of Industries and Commerce. “Wheat Farmers Satisfied” Hon. D. G. Sullivan, replying to a question on the wheat control scheme, said the wheat farmers were satisfied with the arrangements he had made for them. He pointed out that fowl wheat was not controlled under the scheme. The Government controlled milling wheat, but not fowl wheat. They had found, when discussing the problem of fowl wheat, that there would be the utmost difficulty in controlling it, and so the Government had left the matter alone. He was sorry that fowl wheat had gone up, because it affected the interests of people in the poultry industry, but he nad secured some advantages for them in other directions. Mr C. A. Wilkinson said the grant in the Estimates for the development of the wheat industry was a straight-out subsidy to the growers. In spite of all the help given to the growers, they had not been able to produce the amount required, with the result that importation of wheat had been necessary. He also mentioned the importation of oats and maize, end stated he objected to tho principle of importing when they could grow them in New Zealand. He asked the Minister if the Internal Marketing Department was of any use. It was going to be a costly department. Hon. W. Nash: There will be a surplus in the operations of the Internal Marketing Department. Colonel J. Hargest said that as a result of Mr Sullivan taking over the bread industry they had a dearer loaf. Consumers were dissatisfied and bakers in the North Island complained of the quality of the flour. The millers stated their profits were not good, and the farmers said they could not grow wheat at the price. Mr Sullivan: Everyone is satisfied with the scheme. Mr J. A. Roy suggested that some of the huge amount spent on highways should be allocated for backblocks * roads. The farmers, he said, experi-

enced great difficulty in winter owing to the condition of backblock roada. Overseas Radio Artist*. Referring to broadcasting, Mr li. 2S. ►5. Kyle asked how many more urtists were going to be brought to New Zealand. He contended taut encouragement should be given to New Zealand artists. Mr A. Hamilton expressed the opinion that the Government was intent on spending, but was failing to assist those industries which were responsible for building up the national wealth. He wished to register a protest against tne huge expansion of Government Departments and, consequently, largely increased taxation. lie moved an amendment that the Vote of £IIO,OOO for the Legislative Department in the first item on the Estimates be reduced by £lO as a protest against various aspects of Government policy, which he nominated as follow#: The huge expansion of Government Departments, resulting from unwarranted and dangerous incursion by the State into private enterprise; the increased number of State employees engaged in work of doubtful value; the cnpp.ing burden of additional taxation imposed to cover the cost of fetate revenue, instead of allowing individuals, private enterprise and the btate itseif to make adequate provision for the future; the dangerous rise in the cost of living, as a direct result of Government policy; the failure of the Government to deal effectively with the unemployment problem, and the imminent danger of further unemployment in the near future, a# indicated by the serious position of many local industries; and, finally, the refusal of the Government to give the primary producers the full assistance to which they were entitled in dealing with the farm labour problem. At this juncture the closure was applied by the Prime Minister and carried by 36 to 16. The amendment was then put and lost by 40 to 14, and the vote of £IIO,OOO for the Legislative Department wsui carried without division, progress then being reported. The House rose at 5.20 p.m.