SESSION REVIEWED

Nelson Evening Mail, Volume LXXIII, 7 December 1940, Page 6

SESSION REVIEWED

38 BILLS PASSED ORGANISATION OF WAR EFFORT READJUSTMENT OF DIRECT TAXATION 1 [From Our Own Parliamentary Reporter] WELLINGTON. This Day. rr With organisation and control of p the war effort the supreme consider- e ' ation of Parliament, the past year b in the field of national and international politics has been the most ff momentous in the history of New t( Zealand. While there have been ei the usual number of matters of ICi purely domestic interest, there was , e very little of the legislation passed p during the session ended vesterda.y n that did not at some point or other impinge on the war effort. Dominating everything, of course, was the need for financing the Dominion's' share in the war. The basis of the w Government’s policy from the start a was the pay-as-you-go principle and in ] c order to carry that principle as far as j ( possible into practical effect it natural- ti ly found it necessary to readjust direct a taxation. n PARLIAMENT KEPT ALIVE SINCE MAY Though the period over which Par- C liament was in session was exceptional- J ly long, the effective duration, mea- b sured in terms of actual sitting days, si was more or less normal. Parliament was opened on 30th May and the Prime tl Minister (Mr Fraser) adopted the prac p tice of keeping it alive, instead of clos- s ing it down completely, his idea being a to have t ready to resume at any time tl it was thought desirable, in view of the urgency of the situation arising out v of the war. Actually the House was n adjourned five times—from 13th June to 19th June. 20th June to 27th June. £ 31st July to 21st August. 30th August a to Ist October, and 11th October to 26th November. The total number of sitting days was 1 49. but the total number occupied in the session was 191. In the previous a year there were 58 sitting days and, * they occupied a period of 103 days. This c year, however, the House sat longer 0 on an average each day. 0 The number of Bills passed totalled 38. consisting of 31 public Bills, six local Bills and one private measure. Four Bills lapsed, among them the Shops and Offices Amendment Bill, which promised to provoke considerable argument, and which was the subject of soTne petitions of protest. IMPORTANT FINANCIAL MEASURES Important financial legislation was placed on the Statute Book to implement proposals made in the Budget. Four Finance Acts were passed. The first one authorised the borrowing of * £7,000,000 for housing purposes. r £5.500,000 for other purposes, and gave s effect to the Government's policy of * imposing a National Security Tax of Is 1 in the £. This Act also increased the * sales tax and death duties. c The Finance Act No'. 2 authorised the i Government to develop the linen-flax * industry. It also dealt with company taxation and the assessment for income * tax of gold-mining companies. The 1 third Finance Act provided temporary 4 relief from income tax for proprietary companies establishing new industries ‘ and amended the basic rates of income- * tax for companies and public authori- ( ties. The Finance Act (No. 4), which was j 1 the last piece of legislation placed on! ‘ the Statute Book before the session i; closed, contained an important amend- i ‘ ment to the Social Security Act. bringing into operation a voluntary scheme ! j as between doctor and patient in respect to the medical benefits mentioned | ] in the original Act. Of particular importance to compan- ' ies and individuals was the Excess! ] Profits Tax Act. The State is entitled 1 1 to take 60 per cent, of excess profits, j the amount being ascertained by a com-; _ parison made between normal profits |' and (hose earned during the war period. Although not the subject of legisla- ’ ‘ tive enactment a compulsory war loan was instituted under the provisions of war emergency regulations and to secure further finance from smaller investors the National Savings Act was passed, the Minister of Finance having power to fix the investment period and the rate of interest. The Act that ocupied more time in its passage through the House than any 1 other measure was the Small Farms j Amendment Bill, providing for the | acquisition of land for returned soldiers. WAR CABINET Events directly connected with Parliament but not happening in the House \ of Representatives constitute an important phase of the session’s history. The ( Rt. Hon P. Fraser first assumed the duties of Leader of the House when the ] session opened on 30th May. two months ( after the death of Mr Savage. The , ideal of a National Government unit ( edly to carry on New Zealand's war ( effort had been much discussed in the country, but the response of parliamen tarians was somewhat tardy. There ( were lengthy negotiations, opened by I , Mr A. Hamilton, then Leader of the Op position. The Government’s plan of aj ; representative War Council of an ad- ■ visory character, and a War Cabinet in , ] ’ eluding representatives of the Opposition, was not at first favoured, but it ■ was ultimately accepted, Mr Hamilton and the Rt. Hon. J. G. Coates being nominated as the Opposition Ministers 1 in the War Cabinet which commenced : to function on 16th July. Some important ministerial revisions, and one appointment have also to be recorded. Dr. D. G. McMillan (Dun edin West) was selected on 12th June on a caucus vote as the Minister to fill the Cabinet vacancy, his portfolios being Marine, Prisons, and Minister iri ' charge of Scientific and Industrial Re search. On the same date, the Hon. R. , Semple became Minister of Man Power with the responsibility for organising many phases of civilian war effort, in- ( eluding the Home Guard. He is assisted by the Hon. D. Wilson (Leader of I ■ the Legislative Council). During the final sittings of the ses- j , sion. there was a change in leadership ■ of the Opposition, Mr S. G. Holland | ; , (Christchurch North) one of the ! younger members of the National Party : being appointed to succeed the Hon. : A. Hamilton.