FINANCE BILL

Nelson Evening Mail, Volume LXVI, 10 March 1933, Page 7

FINANCE BILL

MEASURE PASSED BY COUNCIL DEBATE COVERS RANGE OF TOPICS (From “The Mail's” Parliamentary Reporter! WELLINGTON, 9iii Mai-.-h Many topics were discussed by members of the Legislative Council during Ihe second reading debate on the Finance Bill (No. 4) in the Legislative Council to-day. The measure was put through all stages and passed. In moving the second reading, the M blister of Education (the lion. R. Masters) said that the Bill provided lor a tax on motor-vehicles which did not use motor spirit. It was found that a niiinher of vehicles were not using petrol, and were thus not contributing to the lost of reading. As the result of the exchange rate the Government was being forced to obtain its own silver coinage. Negotiations with the Royal Mint were going on at the. present time, and the Bill gave the Government power to deal with the position. The lion. M. Eagan said that it was a pity that the Bills providing for loan conversions had been brought down 100 late. They should have been introduced at the same time as the first wage reductions. The- country could not carry the burden of interest it bad been asked to carry during the past two years. The two conversion Bills were just the forerunners of others if the country was to be saved. Security holders did not like being compelled to convert, but actually they should appreciate what the Government bail done. If the conversions bad not taken place there was a danger that the bondholders would receive no interest at all. During the war when men were being conscripted money should have been conscripted as well. Instead, money bad been raised by means of taxfree bonds, and the holders of that class of security had little to complain about. When negotiations began for the conversion of the external debt New Zealand could say that she bad puL her house in order first. However, there were other matters which would have to be dealt with. The return called for by the lion. C. J. Carrington showed that 27 State superannuitants had vastly overdrawn the amounts they had paid’ into the funds. These men had paid in £.26,618 15s 4d and had already drawn out £152,658 2s 3d. Not only that, they were still going strong, and some of them were holding down jobs at a time when there were 70,000 men out of employment. These men should be dealt with by legislation.

JUDGES’ SALARIES Another class which should be dealt with was the “highest branch of the Justice Department,” consisting of six men. They had received two increases in salary since 1910, and on the last occasion, 1920, the reassri given was that the cost of living had increased. Five of them were receiving £2OOO and one ot them £2250. In view of the fact that the cost of living had fallen, the excuse for the rise no longer existed, and their salaries should be reduced. Surely these men had seen the lead given by the- Go-vernor-General, and should be ready to sot an example to the remainder of the community. It they did not set the example, they could not expect it from the wharf labourer, for instance. In England and Australia Hie Judiciary bail been subject to wage reductions, and in view of the. fact, that Hie New Zealand Bench had not seen fit- to make it voluntary reduction in their salaries, compulsion should be used. Mr Fagan urged that legislation should be introduced for the purpose of preventing speculators from holding_ mining areas. These people had no intention of working the l areas they held, and the position was most unfair.

WARTIME LOANS

The Hon. J. A. Ilanan said that Mr Eagan had inferred that the National Government during the war had done a wrong tiling in raising money by tax-free bonds, but in this they were not alone. The same procedure had been adopted in Australia by a Labour Government, and in America. Mr Fagan: “It may have been wrong all the same.”

Mr Ilanan said that the Governments action had been necessary in tho interests of the country. Money was required to carry on the war, and if the steps taken to obtain it had been neglected the money might have been invested in other avenues carrying a higher rate of interest. Mr Fagan had also stated that the interest reductions should have been made at the same time as the wage reductions, but it had to be remembered that it was absolutely necessary that costs should be reduced owing to the fall in the national income. In grappling with the position, the Government had done the right thing. Provision was made in the Bill for the establishment of a silver coinage, and he Hoped that the Government did not have in mind a managed currenev. Mr Masters: “It has no bearing on Mr Hanan: “I am glad to have that assurance.”

MONETARY PROBLEMS Mr Ilannn said that the question of currency was attracting the attention of various schools of economic and political thought at the present time, and opinions were not unanimous on the course which should bo taken. Ibe Americans were considering proposals for the stabilising of the l dollar on a commodity index, and there were other schemes afoot, but there were inherent dangers in any system of managed currency. To have a sound currency it was necessary to have a stable basis, and lie (bought that eventually the principal countries would return to the gold standard. EXTRANEOUS MATTER? “I have objected over and over again to rubbish being put in Finance Bills,” said the 1 111. Hon. Sir Francis Bell. 'I he present Bill laid down that doctors, opticians, and plumbers could not practice without a certificate, but whal on earth had this to do with the public revenues ! “Is it not possible to stuff this, rubbish into a miscellaneous section/ asked Sir Francis. “This method of lcgisluting is not creditable to the Council or the Legislature.” Mr .Masters; “The fees will be paid into the Consolidated Fund.” Sir Francis said that (lie original Bills provided for fees, and surely the Minister realised it was undesirable that these matters should appear in the hinuneo Ad. During the war it was sometimes found necessary to legislate in this way, hut then they had always been careful to set out each class. Surely there was a limit to this hugger-mugger legislation, and it was to be hoped that the Ooverrmient would alter ils ways in the future. Technically it was most important that amendments to legislation should be brought about by amendments

to the original Acts, and the provision in a-'Finance Bill of the fine a masseur was liable lo if lie did not have a certificate was an irregularity which amounted lo an impropriety.

CHRISTIAN TRADITIONS Tin* Hon. C. J- Carrington said that three years ago Mr llau.m hail pointed ou,l. the “danger in the distance, ’ and if bis advjce had been taken, Hie position would have boon mueli botler. In England up to 1791 joint stock companies bad been illegal, but since then they bad been legal, and this seemed to lie the cause of tin; financial troubles which were besetting the world. Civilisation was suffering because i! bail not followed the Christian traditions upon which civilisation was based. Ibe world was being chastened because it bad not put first tilings first. New Zealand was under-populated and bad a low birthrate. and yet sufficient public attention was not being drawn to Ibis problem. F’ebplc were considering their own personal advantage lather than the good ot the community. Mr Fagan bad drawn attention to the ease of 27 retired civil Servants who had drawn out. li'om Hie Superannuation Fund vastly more than they bad contributed. These people bail not been subject to the reductions in salaries that bad been imposed on other sections of the community. I lie whole situation might have come out ot “Alice in Wonderland,” and there was no reason why there should be any privileged class at the present time. ~ Sir Francis Bell: “They paid for it. Mr Carrington said that Hie return be bad asked for showed bow much they bail paid. One man bad paid in something over £IOOO and bad already drawn over £15,000. In the case of men m the second divisions who had been compulsorily retired the position was very different, and many of them were receiving only 35s per week. It was time that privileged classes were done away with. Sir Francis Bell: “The Legislative Councillors are a. privileged class. Mr Carrington: “That may be so, but they are not well paid for it As far as remuneration is concerned wo. receive 14s 3d per day, excluding Sundays, and are on the same footing as the shop assistants, although our disbursements are greater.” . Sir Francis Bell: “Arc you worth it. Mr Carrington said that be. hoped the people generally would get behind the various land settlement schemes because of the difficult period which was facing the country. 'Hie man on the land was in a better position to maintain himself.

SHIPPING COMPANIES ATTACKED The Hon. W. 1L McTntyre made a plea for a tax on imported crude oil. The shipping companies, and the Union Company in particular, had done less than any other section of tlie community to assist, in meeting the depression, he said. They had reduced the salaries of their employees, Tint had made no reductions in ’ freights and fares. A tax of one penny per gallon on the 33)000,000 gallons of crude oil imported would bring in a substantial amount and at the same time belli the coal mining industry. 'l’be TTon. W. Snodgrass supported the plea for a lax on imported mufti oil. Not only would it help the coal mining industry, but it would also help the oil industry in New Zealand. 'Fhe Bill was read a second time. In the Committee stage Mr Masters said that the fee for medical practitioners had been fixed for the purpose of paying for the administration of the Medical Practitioners’ Act. It had been estimated that 5s per doctor would be required, but the medical profession considered that this fee would he uniligoL fled, and had suggested £1 Is. The money would he paid into the Consolidated Fund. The Bill was put through the remaining stages and passed.