Wide Area Covered In Budget Debate: Attack and Defence

Northern Advocate, 30 July 1938, Page 8

Wide Area Covered In Budget Debate: Attack and Defence

[Special to “Northern Advocate/'] WELLINGTON, This Day. rpHE DEBATE ON THE BUDGET WAS CONTINUED IN THE HOUSE YESTERDAY AFTERNOON. THERE WERE SOME TENSE MOMENTS WHEN THE MINISTER OF PUBLIC WORKS TRENCHANTLY CRITICISED A LADY WHO, HE SAID. HAD WRONGFULLY ATTACKED THE GOVERNMENT IN SOUTHLAND. This brcugfit forth a powerful protest by Mr W. A. Bodkin (Opposition —Central Otago) who challenged Mr Semple to substantiate his charges. This morning Mr Semple said he was prepared to repeat his criticism on every \platform in the Dominion. « Attack and defence of Government policy in various aspects were advanced by Opposition and Government members respectively, a wide area of interest being covered.

Mr B. Roberts (Government—Masterton) said the Budget was a fitting climax to the Government's first term of office, and it revealed unity of purpose and planned economy. When the previous Minister of Finance brought down his depression Budget, he did not know he was creating soup kitchens, clothes drives and poverty. Samson Recalled. If the previous Government had been allowed to carry out its designs by extending the Parliamentary term to five years, they would, like Samson of old, not only have pulled down the temple, but also destroyed the people. Behind the principle of the guaranteed price system, said Mr Roberts, was the principle of security and stability. The farmer had more to gain by supporting the Government’s scheme than by going back to the rafferty rules of marketing that had been a bugbear i of the industry in the past. The previous Government did not save the farmer. It sold him in London. He L stressed the need for unity in the dairy industry, and suggested that an authority should be created to speak ' on behalf of the farmers. The life of the dairy industry was in the National Dairy Association, but the authority and elective power was in the Dairy • Control Board. Confidence and Prosperity, • Mr L. G. Lowry (Government— M Otaki) said the Budget radiated confidence and prosperity, and the Labour Government had proved itself capable t and Willing to govern the country in a proper manner along lines of sane finance. | L Private Hotels. Mr Lowry went on to refer to the matter of private hotels, and stated •' that the accommodation offered in many of these places left something to be desired. He had travelled extensively throughout the country, he said, and had had a fair amount of experience in this matter. When one arrived in a private hotel, very often there was no service, and there was no use blowing up the Government for this deficiency, because the service was not there to give. Many were without proper bathroom and lavatory accommodation, he added, and it had been suggested to him by a South African visitor that perhaps a licensing system for private hotels might prove of value, ; Housing. It was not correct, he said, to state that the Government was denying the: people the right to own their own homes. There was ample provision under the State Advances Scheme for people who desired to own their own homes. He also denied the charge that houses which were being erected under the Government’s housing scheme were faulty. New Zealand, he said, required to build up a certain amount of culture. There was no need to apologise, he said, for the money thdt was being spent by the Government, but if they went on as at present—as they must go on—they would have their money in the form of- assets. He also added that it was doubtful if any Government in the history of the Dorn in0, ion had given more time or consideration to the interests of the farming * community. - Unemployment Figures. ... \ ;Mr S. G. Holland (Opposition— Christchurch North) stated that the manufacturers of New Zealand had no better friends than the members of the Opposition. Before he went on to deal with the Budget itself, he stated L that he would like to mention the fact that there had been a lot of gross mispresentation by members of the GovI eminent with regard to unemployment figures. Figures which wore absolutely wrong had been both published and; spoken over the air. and he would like to place the true position before the members of the House. The Government claimed, he said, that when it came into office the actual number of unemployed was 57.246. and in the depth of the depression it was 79.435. Actually, the number of unemployed on those occasions' was 36.000 and 49.000 respectively. An Abnormal Rudgei. If he were asked to give a thumbnail impression of the Budget, he would say u was an abnormal one. said Mr Holland. Both exports and imports were abnormal, and our imports were out of all proportion to our internal trade. Referring to the matter of New Zealand's overseas funds, he stated that not one'member of the Government had given the Opposition credit for the fact that they had left London funds in a condition where il was possible to carry on. but those funds were now being rapidly depleted. Dealing with the Government's social security plans, he stated that

one would at least have expected the Minister of Finance to take the country into his confidence, and give some indication of the amount of taxation that ho would need to levy if the social security scheme went through, but he had not done so. Increased Taxation. Mr Holland then went on to deal with increased taxation during the Government’s term of office, and instanced a case where returns had been obtained from 54 farms in Canterbury district. The aggregate returns from these showed that the total income for the year ended March 31, 1937, was £26,605, but for the year ended March 31, 1938, the total had dropped to £18,289. Discussing industry in New Zealand, Mr Holland said that the costs manufacturers had to face were labour, material, and overhead. Overhead costs amounted to about onethird of the total costs in most industries, and as it cost no more to sell 2000 articles than 1000, it followed that increased output would reduce the overhead costs. He did not advocate wage reductions, but held that costs could be reduced by increasing efficiency. Every worker was entitled to a reasonable wage, but wage rates should not lead to unemployment, or be too heavy a tax on industry. The debate was interrupted by the adjournment at 5.30. Altogether 30 speakers have so far taken part in the Budget debate.