Five More Speakers In Budget Debate

Northern Advocate, 24 August 1945, Page 3

Five More Speakers In Budget Debate

(P.A.) WELLINGTON, This Day. Two local bills were considered by the House of Representatives yesterday afternoon before the Budget debate was resumed. Notice of several questions was given and one was answered in part. Continuing the debate. Mr C. M. Williams (Government, Kaiapoi) said that Mr W. 'J. Broadfoot (Opposition, Waitomo) had claimed that the Government, by exporting timber to Australia. had reduced the number of houses which could be built in New Zealand.

The fact was, Mr Williams said, that owing to the war New Zealand’s supply position for hardwoods for railway sleepers, electric power, reticulation and for many industries had become critical. Australia was the chief source of supply and, by what was virtually a barter agreement, Australia undertook to meet New Zealand’s essential needs in return for supplies of softwoods from the Dominion. That was an agreement they must honour.

Actually, the Dominion had received far more timber from Australia in recent years than it had exported, Mr Williams continued. But for the exports under the agreement they would have had fewer houses, not more, because it would have been necessary to divert men from the timber mills to the bush to cut sleepers. Mr Williams urged the adoption of a universal family allowance. He contended that the present system penalised those who were earning between £4OO and £SOO a year and they were mostly wage-earners.

Big Surplus, Less Taxation. Mr C. M. Bowden (Opposition, Wellington West) said that the Minister of Finance obviously wanted to finish the present financial year with the lai'gest possible surplus so that he could make the biggest possible reduction in taxation next, year. What the people wanted was a reduction in taxation this year, so that business could be rehabilitated.

The only real wealth was the production of goods, but there was no indication in the Budget as to how that production was to be increased. There was need for a strong' and definite policy regarding' farming production and there was also need for a policy for industry. Industry was being hampered bytaxation and lack of manpower while the -Government was clinging to its policy of control and was holding enormous staffs to carry out that policy, said Mr Bowden. He wanted to make it clear that he was not including rationing in his comments on controls, because when goods were in short supply rationing was necessary and just. The Budget showed no real plan for rehabilitation, Mr Bowden continued. The Minister of Rehabilitation should be freed from his other portfolios and allowed to devote his whole time to the men and women being discharged from the forces, ‘with power to co-ordinate the resources of other departments necessary to complete a rehabilitation plan. He should also have charge of the financial aspect of rehabilitation, because while the State Advances Corporation was a most efficient organisation it did not possess the elasticity necessary for a successful rehabilitation scheme.

jMcve lute Towns When (he debate was resumed last night, Mr D. C. Kidd (Opposition—Waitaki) said the Labour Government had claimed that it would help the small farmers, bur it had proved the worst friend the small farmer ever had. There had been more land aggregation under Labour than ever before, and that was one of the problems the Minister for Lands would have to grapple with today. In ■ rural districts' of the- South Island there were empty houses everywhere. The Minister for Agriculture (Hon. B. Roberts): Not up our way. Mr T. H. McCombs (Government— Lyttelton): There are plenty down our way. Mr Kidd said that people had gone off (arms into the towns because of the Government's policy of higher wages and shorter hours. If primary production was the key lo the country's prosperity, that drift had not only ro be stopped, it would have to be reversed. Farmers could not get good labourers because of the Labour policy, which taxed the* farmer so that lie could not pay them, and offered them better conditions in the towns.

Labour hacl promised to put hydroelectric power into every home in the country, Mr Kidd continued, but there were thousands of farmers’ homes still without electricity. When the National Party became the Government it would give the farmers electric power and would supply them with electrical equipmem free of sales tax and duty. Mufti Allowance Mr R. M. Macfarlance (Government — Christchurch South) said that the Leader of the Opposiiton had complained that the mufti allowance of £25 to demobilised servicemen was inadequate, but had failed to mention that after the last war the allowance was only £5. The main concern of the Government' this year was to see that obligations to returning servicemen were met. The fact that the war had been won did not. mean that there would not be heavy financial responsibilities during the next financial year. It was the job of any Government in office at present to see that the necessary financial sacrifices were made to enable obligations to the men who had fought overseas to be met fully. The Opposition, in talking about taxation. overlooked the fact that a huge amount of money was tied up in New Zealand today. Many people who were clamouring for reduction in taxation had plenty of money at their disposal. Mr R. M. Algie (Opposition—Remuora) said he felt that the Minister for Finance must have suffered when Mr Langstone was expounding his financial principles the previous evening, because much of what Mr Langstone said was hot air. Mr Langstone- bad claimed that the taking over of the Bank of New Zealand was ■the most important question today. Mr Algic said he could not agree with that, because he considered rehabilitation, housing, full employment and a proper standard of living were more important. “No Political Motive” Mr Langstone had told his own electorate that, there was no political motive in taking' over the bank. Mr Algie continued. but he had told the Labour conference that if they took over the bank they could win all 80 seats. Mr A. S. Richards (Government—Eoskill): That is what stings. Mr Algie said that if the case for taking over the bank were really a good ease the people of New Zealand should be told about it, but instead of official Government statements the people had to be content with fulminations, innuendos and nebulous reasons.

Mr Roberts said that the Opposition members had attacked his department' because the price for wheat was only S/G a bushel. Wheatgrowers had agreed to 6/fi a bushel for 200.000 acres. Then the Minister had offered a bonus rising to 7/1 a bushel for 250,000 acres and, that acreage had been dropped to 235 000. Farmers had experienced a very difficult season and sowings had been interfered with, but the Minister could not understand the logic of arguing that the price offered for the maximum acreage should now be regarded as the minimum for all wheat grown. The House adjournc-d at 10.30 p.m.