THE BUDGET DEBATE.

New Zealand Herald, Volume LXV, Issue 20027, 17 August 1928, Page 15

THE BUDGET DEBATE.

STATE AND INSURANCE.

SOLDIERS ON THE LAND. ASSISTANCE TO SETTLERS. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Thursday. The debate 011 the Budget was continued in tho House to-day. Mr. H. T. Armstrong (Christchurch East) said the Budget made it appear that the country was growing in prosperity every day, but people were never so poor as they were now. Never in the history of the country had people been so uneasy, and the farmers were discontented. Voices: No, no. Mr. Armstrong said the State had gone into the insurance business and so far as it went it had been a pronounced success, but instead of the Government encouraging State concerns it seemed to be far more interested in the success of tho privately-owned concerns, At present insurance companies insuring against accident took nearly half of the amount paid in premiums, which was clear proof that it was time the State department became more active. Last year insurance companies benefited to the extent of £221,000 out of accidents alone.

It was never the intention of the Act that this should be so, and if the State office had increased its benefits or reduced its premiums it would not have been long before it obtained a complete monopoly of accident insurance. In Queensland insurers got 94 per cent, of the premiums paid, and this could be done here just as easily if the State Insurance Office would only bestir iftself and enter actively into competition with rival offices.

Railways and Buses. Mr. G. W. Forbes (Hurunui) said tho efforts of the Government to effect departmental economy had been futile, and were scarcely worth talking about. In former Budgets there was always a statement regarding land settlement. To-day that had disappeared entirely, and that meant that nothing was being done in the matter of land settlement, and that what was being done was not worth mentioning. This was very different from tho days when people looked to closer settle ment to bring the country out of its troubles. The dismal story of tho soldier settlements was repeated. The railways were still going back. He disagreed altogether with the policy of running buses in conjunction with the railways, and hoped the general manager would stop it at once. What was made by the railways would be lost on the buses. The Hon. A D. McLeod, in reply to Mr. Forbes' objection to buses being run in connection with the railways, said railways in all parts of the world were experiencing keen competition from road traffic, and where they were run by private companies they were going to the Parliaments of the ; r countries and asking for the right, to run buses. They had not done this without careful consideration. The New Zealand Government had not rushed into the scheme rashly, but had come to its decision deliberately. He defended the construction of the Rotorua Taupo railway, as it would open the largest area of Crown land suitable for closer settlement. " Mistakes Were Honest."

Coming to soldier settlements, the Minister said even if there had been mistakes they were honest mistakes. No one had his "palm greased," and no country in the world had done so well in repatriating its soldiers as New Zea land had. The Leader of the Opposition had a great deal to say about these settlements, but at no time did he forecast there was going to be a slump after the war, and that thero would be any difficulty about repatriation. On the other hand, the Leader of'the Opposition had voted for a gratuity to soldiers that would have absorbed the whole of the accumulated surpluses and left the soldiers no better off. Mr. McLeod said it had been stated settlers had been forced off their farms and «those farms had been given to others at a lower price. . He frankly admitted this was so in some cases, but that did not tell the whole story. Investigation had shown that many of these men had never paid any interest. A settler must pay something, and when he could pay nothing then it was no use trying to carry him any longer. lie claimed his administration had been most sympathetic, and he believed the worst days of soldier settlement were over. As to assistance given to settlers generally, he said advances made to settlers now amounted to £50.000,000, four-fifths of which was made since Reform came into power. Deteriorated Lands. Discussing deteriorated lands, the Minister denied that anything like 5,000,000 acres had gone back. That statement was a gross libel on the Dominion. He was confident a great many of these lands would come back into profit, if economic conditions would justify the labour this land must carry. Mr. H. G. R. Mason (Eden) criticised the public works policy, contending no railway should be built unless its construction could stand the closest examination. This seemed to apply with especial force to the proposed Rotorua-Taupo railway, which to him seemed to justify the statements of people who wrote to the papers and said it would not pay axle grease. To build this railway would cost tens of thousands of pounds and then they would have land limited in quantity and of such quality that it was doubtful if it would pay to expend money to improve it.. MUSIC TEACHERS BILL.

MINOR AMENDMENTS. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Thursday Only a few minor amendments to the Music Teachers Hill have been made by the Education Committee of the House. Persons who have been struck off the register for non-payment of fees are to have the right of reinstatement on payment of back fees within 12 months. The Registration Board is also empowered to establish a provident fund for the assistance of registered teachers who are in necessitous circumstances. WHAKATANE HARBOUR. [BY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Thursday. The Whakatane Harbour Amendment Bill has been re-drafted by the Local 13ills Committee of the House, which recommended that the bill as amended be allowed to proceed. Tho bill seeks to reconstitute the harbour district. ONERAHI PROPOSAL. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Thursday. The Onerahi Water Reserve Enabling Bill was reported from the Lands Com' mittee of the House without amendment to-day. The bill seeks to authorise the Onerahi Town Board to clear, put down in pasture and lease an area of bush land which had been reserved for water conservation purposes.