DOMINION AFFAIRS

Northern Advocate, 15 August 1931, Page 9

DOMINION AFFAIRS

BUDGET DEBATE

IiIOISLATORS’ OPINIONS,

TAXATION AND LEVY.

(From Our Parliamentary Special.”) ' WELLINGTON, This Day.

The-debate on the Budget was continued in the House of Representatives yesterday.

Mr A. E. .lull (Government, Waipayra) opposed the suggestion that more money could be obtained from death duties. That was unsound policy, because the country would actually be tiding up its capital to carry on yearly allocations. New Zealand did not possess. such a reservoir of accumulated as there was in Great Britain, 'ajad it was therefore not possible to sip». into it with the same apparent lack of difficulty. He defended the potion of the. Government in regard to highways finance.

Mr W. P. Endean (Reform, Parnell) Mid the Reform Rarty had warned the Government of the depression, but the warning had not been heeded in time. The payment of standard wages on relief -works and other extravagances had heaped up taxation until the country had been bled white. Had thb Reform Party continued in office, the Budget would have been different from the one the Prime Minister had introduced.

Hh complained that New Zealand’s financial advisers had not taken sufficient notice of Australia, and he quoted warnings made to the Government by members of the Reform Party. The Leader of the Opposition had Suggested a short session of Parliament, but the Government had been SO lacking in vision that it had not taken any timely action. Had the Government heeded the advice, there would have been a saving to the country of £1,250,000 in economies. The Government had not grappled seriously with the cost of living. If prices of the Dominion’s products did not recover, costs would have to come down in conformity. A start would have to be made on farms, not only in regard to the wages of ©hearers and shepherds, but in saving of farming operations generally. Transport charges also would have to bo reduced, was necessity for rationalising industry.

Niemeyer Report. Mr W. E. Barnard (Labour, Napier), discussing Sir Otto Niemeyer’s report, agreed that the gold standard was not essential to the internal working of a country. The establishment of a reserve, hank seemed to be a proposal in the-right direction. Parliament, however, would render itself impotent if it sanctioned such a change in the banking' system as would place the finances of New Zealand in the hands of private firms, even witli the mild restriction suggested by Sir Otto Niemeyer. 'What was required was a managed currency in the interests of the people, with the national welfare as the dominant consideration.

Referring to the extra 20 per cent Stirtax on incomes, Mr Barnard urged that it should be imposed on insurance companies on the basis of fair profits, and not merely nominal profits. Under the Budget proposals,, the tax that Would be paid by the A.M.P. Society would, in two years, .lump from £15,000 to over £65,000. The basis of taxation wAs unfair to those with policies in life insurance companies, and struck at the very foundation of life insurance, He criticised the new tobacco duties. ' '

Previous Prodigality. Mr W. D. Lysnar ’(independent, Gisborne) said the difficulties which the Government was facing wore very .largely due to the; extravagances of the former Administration, The present Government could not be accused Of extravagance, its history had been

one of economy. : Mr Endean; “Do you differentiate between this Government and the Ward Government?* ’ Mr Lysnar: “Yes, I would not have supported the Ward Government." Mr Lysnar said nobody liked the taxation proposals, but they were absolutely necessary.

Making his maiden speech, Mr W. W. Massey (Reform, Hauraki) said he did not intend, to speak at any length. His impressions during the debate had been that many speeches could have been .curtailed with decided advantage 10 the country. This was particularly so during the present depression, when 'short, useful speeches would do more good than long ones containing much repetition. The House adjourned at 5.30 p.m. until Tuesday.