BUDGET DEBATE DRAGS ON

Manawatu Times, Volume 63, Issue 181, 3 August 1938, Page 5

BUDGET DEBATE DRAGS ON

Labour Paper and Wage Cats ME. POLSON ACCEPTS A CHALLENGE Per Press Association. WELLINGTON, Last Night. I Continuing the Budget debate in the House to-day, Mr. B. G. Holland, whose speech, was interrupted by the adjournment on Friday, stated that during the last depression the company running the Labour newspaper had cut wages and lengthened hours. Ho asked i'or an assurance that, if the Labour Government were m office during another depression, it would not cut wages aud increase working hours. He proceeded to criticise the Government's legislation which, he contended, had been responsible for greatly increased costs, and instanced the case of oae shirt manufacturing business in Christchurch where costs had been increased 40 per cent, under the Labour regime. Ho also held that, as a result of the present Government’s industrial policy, tho output in industry was being reduced and ho suggested that a Royal Commission might profitably be set up to inquire into the whole position.

Mr. J. Robertson said Mr. Holland’s reference to the Labour paper might be held to infer that tho Labour Tarty was responsible for increasing hours and reducing wages. This was not the case because the Labour paper was not owned by the Labour Party but by a group of organisations and individuals. In fact, added Mr. Robertson, he owned some of the shares himself. He stated that during the depression the Labour paper had to compete with other printing businesses in Wellington and it had been forced to observe the conditions which were observed by them or go out of business. He added that the Labour paper had been by no means the first to introduce wage cuts or lengthen hours, but had dono so only when forced to do

Continuing, Mr. Robertson said that the Labour Party was tho only political organisation in the Dominion which refused admission to Communists.

Mr. Poison: The president of the Federation, of Labour is a Communist. The Minister of Education (Hon. P. Fraser): Will you say that outside? Mr. Poison: Yes. Mr. Fraser: I challenge you to say it outside.

Mr. Poison: I will prove it. Mr. Robertson referred to a statement made in the house last week by Mr. Bodkin in which ho criticised the Minister of Public Works for his statement in regard to the reported utterances of a woman supporter of the National Party. Mr. Bodkin had made two incorrect statements, said Mr. Robertson. Tho lady in question had been through other electorates addressing meetings and it was incorrect to assert that the statement was made at a public meeting. Patients had no option but to listen. It was not the only incident of the kind that had happened in New Zealand, said Mr. Robertson, and he continued that the only time the rights of democracy had been interfered with in the Dominion was when the last Government extended the life of Parliament without reference to the people. Mr. Bodkin: What about the radio! Mr. Robertson: There is more freedom of the air to-day than ever before.

Mr. Robertson continued that during the depression the last Government had doled out boots, blankets, cheap meat, etc., to the unemployed, and said there was nothing more demoralising to a married man than to have to receive charity. All that had been abolished by the Labour Government. In the twelve planks of the Government's policy there was no mention of the sales tax or exchange rate, yet for electioneering purposes these subjects were being made into political bricks and hurled at the party in power. Balancing the Budget. Mr. C. K. Petrie congratulated the Minister of Finance on balancing tho Budget without hurting the individual and on the building up of reserves without borrowing overseas. There seemed to be a new spirit of optimism and people were facing the future in a new spirit of confidence aud resolution. The leader of the Opposition had described the Budget as a soft-pedalling Budget, but the brakes were still off and the Government was still pedalling on until it reached tho end of tho journey. The Labour Government had organised the economic life so that prosperity had reached every individual and our progress had become the envy of nearly every other country. Mr. Petrie showed that the production had increased by £37,000,000 since 1933 and wages and salaries had increased by £33,000,000 in tho last three years. Speaking of the exchange rate, he said that the Government which had put it on had made a mistake but to change it at the present time would be wrong. The Opposition, said Mr. Petrie, held that it stood for private enterprise and was totally opposed to Socialism, but on closely examining tho previous Government’s legislation a good many Socialistic measures were disclosed. Dealing with the question of the control of industry, he contended that the scramble among industrialists necessitated by keen competition must be stopped if industry were to survive, but another danger must also be avoided and that was the building up of industrial monopolies. Impossible to Insulate New Zealand.

Mr. W. P. Endean contended that it was impossible to insulate New Zealand manufacturing industries which were placed at a serious disadvantage through high costs when competing with oversea products, and he also asserted that the Government had shown unwillingness to accept the advice of its experts as was exemplified by the recent statement of the Reserve Bank, which had pointed out the error in the Government’s policy in connection with public works, lie also criticised the Government’s expenditure, stating that tho country could not afford to spend millions and millions of pounds. The happiness and prosperity of the people, he said, were being seri-

ously menaced as & result of the policy of the present Government. He said that the farmers were not satisfied with the guaranteed price but the Government had capitulated this election year. They were not satisfied because the Government was not giving them what they were entitled to, namely, their own money. He referred to the advisory committee as a "star chamber” and asked why the farmer should not know all that took place regarding his own rights. The debate was interrupted by the adjournment at 5.30. Mr. Endean, continuing in the evening, said the Government had failed to solve the unemployment problem. Dealing with defence ho stated that what was wanted was really a healthy public opinion behind the desire for defence. Tf it were not no Government could hope to succeed with the defence policy. Minister on Dominion’s Prosperity.

The Minister of Industries and Commerce (Hon. D. G. Sullivan) said there were powerful and influential journals in the United Kingdom which had commented favourably on New Zealand’s finances besides papers supporting Labour’s point of view there. He also drew attention to the appreciation of New Zealand stock on the London market following the presentation of the present Budget. The Government, said Mr. Sullivan, had been accused of hitting industry in New Zealand, but ho quoted returns of representative industries showing substantially increased profits since the present Government had come into office. There returns which showed doubled and even trebled profits, said the Minister, amply demonstrated the phenomenal prosperity which the Dominion was enjoying to day.

Dealing with the question of guaranteed prices the Opposition had stated that farmers were opposed to this system of payment for butterfat, but the enthusiastic receptions given the Prime Minister by the farmers on bis visit* to the different country districts did not lead one to believe that, the Opposition’s contentions were correct. As far as his own personal experience was concerned, said Mr. Sullivan, all farmers with whom he had come in contact had been roost eulogistic and enthusiastic over the guaranteed price system. The Minister went on to defend the public works policy in relation to its replacement of public buildings. For some years past, he said, public buildings replacement had been neglected and many schools had depreciated to a shocking extent and the present Government had had to set out to make up for the arrears of past Governments. Mr. Sullivan also stressed the necessity for the present Government to increase expenditure on the maintenance of railway rolling stock which be alleged bad been reduced by the previous Government during the depression years. The Opposition had contended that if it were returned to office it would reduce taxation, but, continued Ibo Minister, it could not bring about a reduction in taxation without taking money out of someone’s pockets. It would perhaps reduce wages, cease public works or reduce expenditure on social services. Referring to the tobacco industry, the Minister said the industry required sympathetic support from the Gobernment and would get it. The Government would give help and support to place the industry on a thoroughly firm foundation. Mr. Sullivan added that prosperity could not exist if increased costs equalled increased income, but while the Opposition claimed that costs had cancelled the increases it also said the Government should not carry on public works iu time of prosperity. That was an admission of prosperity at the present time. Compensated Price Criticised. Mr. Ormond Wilson said the compensated price started as a formula, then it became a plan, then a principle and before long it would be only a smell, like a patent medicine that had once been put on the market. Vbo Opposition propaganda was like advertising. It was reiterated tim.) after timo in the hope that it would sink iu. Opposition members were continually tulkiug about increased costs. As compared with 19211, the cost of living was lower to-day and the average wages had increased. As far as farming costa were concerned, there had been no "galloping” increase snice 1929, although most of the items showed an increase. Galloping costs were a pure fallacy and nothing but propaganda. The most important single item in the farmers 9 outgoing's, said Mr. Wilson, was his interest. Over £3,000,000 had been written off farm mortgages and in addition interest had been reduced in thousands of cases. Mortgage interest rates wore 12 per cent, lower to-day than in J 929, and that reduction, meant relief to the farming community amounting to about £2,360,000. The position of New Zealand as a whole was distinctly better than 1929. Farmers had £10,000,000 more in 1938 than in 1929 and costs were lower. That was in spite of shorter hours and higher wages. Mr. D. W. Coleman expressed gratification at the money that had been spent and was proposed to be spent on the East Coast of the North Island. The East Coast was undoubtedly one of the most important districts in New Zealand, but in the past it had been a Cinderella. He wondered why the Opposition complained so much about taxation, because New Zealand was one of the lowest taxed countries in the world when taxation was based on per capita income of the population of the Dominion. Both manufacturing industries and the building trade were showing increased activity and were reflecting the prosperity of the Dominion despite the Opposition s contentions to the contrary, said Mr. Coleman. He also stated that there was no ground lor tbe Oposition’s criticism regarding tbe quality bf houses erected under the Governments housing scheme. The mere fact that people were clamouriug to secure these houses was sufficient testimony as to these dwellings. The debate was interrupted by th# adjournment at 10.30.