BUDGET DEBATE

Nelson Evening Mail, Volume LXVI, 1 September 1934, Page 5

BUDGET DEBATE

— ATTACKS BY LABOUR MEMBERS POSITION OF COUNTRY STEADY PROGRESS SAYS GOVERNMENT MEMBER (By Telegraph) (From ‘'The Mail’s” Parliamentary Reporter) WELLINGTON, 31st August. ’The Budget debate was continued in the House of Representatives to-day. Alv W. E. Parry (Labour, Auckland West) referred to the reduction in wages made by the Government and said that could not be justified in a country like New Zealand where there was production in plenty. It could be justified only when there was a scarcity of production. Air Ransom had stated that the Government had set out to save the farmer from ruin. How had it saved the farmerV The answer to that was found in the State Advances Department, the report of which showed that 40 per cent, of those who held securities were unable to meet their interest obligations. If that was saving the farmers, it was an extraordinary way of doing so. The Lands Department had the same ratio of those who were unable to meet their obligations. How then had the Government's policy saved the farmers of New Zealand?' They were told when the exchange rate was increased, 7") per cent, of the farmers were practically bankrupt and that exchange would save them. The whole trend of the Government's policy was to sell out to the private money lenders of the country. ’The Minister had said New Zealand was on the up grade. Air Parry said he would like to know how that was. so?

The Hon. E. A. Ransom: “A balanced Budget, and reduced taxation.”

GLOOMY OUTLOOK

The Prime Minister (the Rt. Hon. G. \V. Forbes): "The gloomy aspect of the Opposition." (Laughter.) Air Parry asked if it was because the Government had 23 million sterling in England, which it could not bring to New Zealand. The only increase was, in the price of wool which was very artificial. The wage tax should not have been reduced till the conditions of the poor people had impiuved. Relief workers and pensioners should have been the first to benefit. The Alinister had referred to im-. migration, but what was the use of bringing more pepole to New Zealand to consume the products when the policy of the Government would not make the products available to the people already here. Coming to the Reserve Bank, Air Parry said the bank had taken over securities that rightly belonged to the people. The people’s credit had been used to take over those securities. The Budget deficits had not revealed the true national deficit of the country. Human suffering was a deficit. The tumble with the country was that goods were increasing while hardship and suffering were becoming greater. Air Parry proceeded to refer to the establishment of an auxiliary police force and said the Commissioner of Police had been actuated by fear in persuading the Alinister of Justice to establish that force. Air Parry said it had been represented to him that the recent theft of a machine gun had been committed for the purpose of justifying the Governments action. The best thing that could happen would be to retire the Commissioner of Police and send him away to Little Island with a revolver in one hand and a club in the other and let him make immitations of men in mud. There was no need to recruit a police force. Labour was opposed to it and would fight to the bitter end against turning tlie Dominion into a military camp to have working people marched to work with bayonets and rifles. He protested strongly against* the establishment of such a body.

HELPING THE FARMER Mr H. Holland (Government, Christchurch North) said the Government had done a great deal to help the fanner and the action taken ky the Government regarding company promotion was highly commendable and had resulted in saving thousands of pounds to those who had been led away by the pleadings of representatives of the companies concerned. Appearing at an opportune moment, the Budget was the brightest and most optimistic document for years and had inspired the country with new hope anil confidence and, incidentally, had completely taken the wind out of the Labour Party’s sails. He could not understand why the restoration of wage cuts to the Public Service was made retrospective and pension restoration prospective. However the Government was to be complimented on its action. He hoped the next Budget would give relief from general taxation. Mr Holland proceeded to speak of hydro electricity development and of the great progress made in recent years.

Hr F. Langstone (Labour, Waimanno) criticised the Government for its past actions and said the Budget should be submitted to the House as a Suspense Account. Dealing with exchange, he said the Reserve Bank created credit by putting figures in books. Tf the bank could do that, so could the Treasury. He contended there was no need to establish the Reserve Bank. '(’lie Government could have taken over the Bank of New Zealand, which had branches all over Xow Zealand. Establishing the Reserve Bank would have no result. The other banks would go on as before. The debate was interrupted and the House lose at d.,‘10 p.m.