PARLIAMENT.

New Zealand Herald, Volume LXVII, Issue 20642, 14 August 1930, Page 13

PARLIAMENT.

CUSTOMS REVENUE. I 7 debate on the bill. MANY ro'INTS COVERED. .protests at increases, opinion o 7 n petrol tax. [nr TELEGRAPH.—SPECIAL REPORTER.] W ELLINO'I ON, Wednesday. Advice on methods of raising revenue was freely tendered to the Government to-day when the whole field of indirect taxation was opened up by the discussion on the Customs Acts Amendment Bill, which passed its second reading early tfy's morning and was considered in the Committee stage jin the afternoon and t; evening. By prolonging the discussion on the short titlo members wcro able to talk in general terms of the proposed increases in taxation, and that phase of the debate was still /in progress after the supper adjournment. When tho subsequent clauses come to be considered tho discussion will bo narrowed down to specific issues. Protests at some of the increases proposed by the Government tamo from both the, Opposition sides of the House, lint it remains to be seen whether in ererv case protests will be endorsed by adverso votes at the ringing of the division bells. In that connection tho Labour Farty's attitude will be watched with interest, bujt tho indications in the Houss to-night do not point to tho fate of the Government hanging 'in the balance. Although the criticism was of a general nature, the discussion turned mainly on the increase in the petrol taxation. As, the debate progressed, however, there seemed to be no doubt that the extra threepence will stand, in spite of Labour objections that the extra impost will placo an extra burden on practically all industry and will affect the pockets of the working people who depend on bus services to reach their-places of employment. "i can see that this debato is shaping toward a very long night or a very early morning," remarked Mr. Forbes with a smile early in the evening. Subsequent events fully; confirmed his cheerful prediction. The short titl£ of the bill was passed at midnight. ,The debate then continued on the rates of import duties on animal foods, and the House was still sitting when the telegraph office closed. I " DAYLIGHT SAVING. // DATE OF COMMENCEMENT. EARLIER OPERATION SUGGESTED. [BY TELEGRAPH. —SPECIAL REPORTER. J WELLINGTON, Wednesday. Daylight saving will automatically operate* eight weeks from next Sunday. A move to secure' the earlier effectiveness of the Summer Time Act of last year was made in the Legislative Council to-day bv the Hon. G. J. Garland, who gave notice that he would ask tho Government if it would favourably consider an amendment to enable summer time to begin this years on tho secpnd Sunday in September instead of the second Sunday in October. ) MASSEY COLLEGE. REPORT ON YEAR'S WORK,, PROGRESS OF FARM ACTIVITIES. [sr TELEGRAPH. —SPECIAL REPORTER.] i WELLINGTON, Wednesday, A year of substantial progress is recorded iu the annual report of the Massey Agricultural College tabled in the House o[ Rcpresentatices. The report states that the various branches of the college activities had steadily developed and the results of the year's work might be considered extremely satisfactory. The enrolment of students totalled 175, which again exceeded expectations. The rapid progress made with the erection of the main and refectory buildings had a good moral effect on both staff and /students. Even the uncompleted buildings had greater sense of reality and substance to the institution. With the completion of the autumn sowing of young grass, tho farm had been brought to a stage of development very .little short of the present requirements 'of the college. f Whereas it had been necessary in the past to push forward the work at an abnormal pace, it would be possible to carry out further improvements at a more steady and normal rate. Tho development work of tho past, had made a very heavy claim on' the time of . members of the staff and the completion of that phase was a distinct • relief. So far as crops pnd stock were concerned tho results of the year's work were quite satisfactory, excopt for the effect of the drop in the values of farm produce. WELFARE OF PRISONERS. | ■ I PERIOD OF SUBERVCSrOM PROPOSAL^ FOR FURTHER TERM. [BV TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Wednesday. The supervision of prisoners after the term of their sentence has expired is proposed in the Crimes Amendment Bill which was read a first time in the Legislative Council to-day. It is suggested that persons sentenced to in>prisonment/or reformative detention for anv term not. less than 12 months, unless loleased ori probation in the meantime, shall remain/ for a further 12 months under the supervision of a probation officer, a society committee or a person norn inatsd by (lie chief probation officer. If a person commits any breach of any conditions imposetl on him while under super vision, be. shall be finilty of an offence punishable on conviction by a fine of £2O, or imprisonment for three months, arid may be arrested without warrant. Any person /so convicted shall remain under supervision for n further 12 months from such conviction or from the expiration of any sentence imposed for the offence, whichever is the later. A further section of the bill provides • hat a probationary licence issued in accordance with the Crimes Amendment Act, 1920 t'j prisoners other than habitual offenders, may be for such a term as the Governor-General thinks fit. The term formerly fixed was not to exceed twice the period of the unexpired period of imprisonment. A person on probation or under supervision after the expiration of his sentenco may apply to the Prisons Board for the remission or alteration of any of tho conditions of h's probation or -supervision and, in the ef.a ni <>i the hoard making an order for discharge, the term of probation sha';l expire on the date on which tho order is made.

DUTIES ON WHEAT. SUGGESTED REPLACEMENT. SUBSIDY TO THE GROWERS. PROPOSAL LOST ON DIVISION. [BY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON. Wednesday. . With the object of replac ing the sliding scale of duties on wh»it ami flour by a subsidy to the growers, the Labour Party divided the House with an amendment on the second reading stage of the Customs Amendment Bill at three o'clock this morning. The amendment was defeated by 41 votes to 30, but even had it been carried, the bill would still have gone to its second reading. After the defeat of the amendment the debate languished and tho second reading was accorded without division. Satisfied at the rate of progress achieved, tho Prime Minister, the Hon. G. W. Forbes, then intimated that he did not propose to ask the House to sit longer. It would be preferable to take the committee stages of tho bill when members wore fresher and tho adjournment was then taken. Presumably owing to the severe cold from which Mr. H. E. Holland, Leader of tho Labour Party, is suffering, the amendment was moved by Mr. J. McCombs (Labour— Lyttclton). Its text was as follows:—"That in order to provide cheaper wheat and (lour and also to assist the local wheat-growers, the Government be recommended to bring in legislation for the payment of a subsidy to the wheatgrowers in lieu of the present duty." Cheaper Bread a Result. In announcing that ho was authorised to move the amendment on behalf of the Labour Party," Mr. McCombs said he had no idea of defeating the bill. The amendment would give the House an opportunity to show its attitude on the question. To give effect to the proposal it would be necessary for the Government to make definite provision for the payment of the subsidy and alter tho law in regard to the protection already afforded to the wheatgrowers. If the protection were along the lines advocated by the Labour Party, the present opposition would practically disappear. The consumer would get cheap bread and the poultry farmer would get cheap wheat. Mr. H. G. Dickie (Reform —Patea): What price do you propose to guarantee to them ? Mr. McCombs: The wheat pool is in a position to make a guarantee. Tho Prime Minister said he recognised that the House should have an opportunity of expressing an opinion on the question. Tho wheatgrowers had made their arrangements for the coming season and if the subsidy proposal were carried it would involve an expenditure of at, least £500,000, and it would be very difficult for the Government to provide that sum. Personally, he believed that the present system of the sliding scale of duties was the most desirable system, but he was prepared to allow a vote to be taken so long as its adoption would not affect tho chances of his bill. Mr. Speaker said that in the event of the amendment being carried, the bill could still go to its second reading. Views of Members. Mr. C. A. Wilkinson (Independent— Egmcint) suggested that the change, should not be made operative until August 1, 1931. He. intended to support the amendment,, although he did not altogether agree with the system advocated. Mr. Wilkinson said he was glad to know that the Labour Party was at last awake to the needs of the position. Mr. W. J. Poison (Independent—Stratford) said lie was in favour of a reduction of wheat duties, but he was not in favour of tho amendment. Mr. J. T. Hogan (Independent—Rangitikei) said he would do anything that •would bring about an improvement in the present state of affairs. *■ The division list was as follows: For the Amendment—3o. Armstrong McCombs Barnard McDonald Black McKeen Broadfoot \ Martin Carr Mason Chapman Munns Fletcher - W. Nash Fraser O'Brien Harris Parry Ilogan Rushworlh H. E. Holland Savage Howard Semple Jordan Sullivan Langstona Svkes Lye Wilkinson Against—4l. Ansell Linklater Atmore Lysnar • Bitchener McDougall Bodkin Macpherson Burnett Makitanara Campbell Massey Clinkard Murdoch Coates J. A. Nash Cobbe Ngata Dc la Perrclle Poison Dickie Ransom Endean Samuel Field Smith Forbes Stalhvorlhy Hall Taverner Hamilton Veitch Hawko Waite Healy Williams Henare Wright H. Holland Young Jones TARIFF REVENUE. BASIS OF NEW RATES. THREE WEEKS' COLLECTIONS. [in: TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON. Wednesday. The total customs revenue collected, since the passing of the.tarilf resolutions on July 22 was £541,363, according to figures quoted by the Prime Minister. Hon. G. W. Forbes, in the House, in compliance with a request made by the Leader of the Opposition, Right Hon. J. G. Coales. The total, which covers tin? period from July 23 to August 12, was made up as follows: —Customs, '£415,132; petrol duty, £95.758: tyre tax. £4958; beer duty. £25,515. " The amount which goes into the Consolidated Fund, of course, is £415,132, said Mr. Forbes. " That would represent an annual revenue of £7,195,000, while the estimated customs revenue for the whole year is £8,530.000. Three weeks, of course, is too short a period on which to rely, and on that hasis there would be a considerable, shortage. However, we do not anticipate that that will be tho case." Mr. D. Jones (Reform —Mid-Canter-hury): What was the value of the goods on which that was collected ? Mr. Forbes: I have not that information. Mr. Jones: Well, fhe figures are of no use. (hen. Mr. Forbes: I do not say the figures give a reliable guide, but the information was a*kcd for and telegrams were Rfiifc to the various ports so that wo could give the figures. It is not possible to get tho value of the goods. Mr. W. J. Poison (Independent—Straifoid) : Can we have the comparative figures for last year ? Mr. Forbes: No. We have not that, j These iigures are only for a period of three weeks, and were all that were asked for.

THE DUTY ON BEER.

HIGHER RATE SUGGESTED. PROPOSAL BY MR. McCOMBS, MEANS' OF EXTRA REVENUE. [lll- TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Wednesday. Tho working man's beer was a subject which entered into the debate on the Customs Amendment Bill in the House of Representatives this evening, when Mr. J. McCombs (Labour —Lyttclton) .suggested that the Prime Minister, the Hon. G. W. Forbes, might have gone further in increasing the beer duty, and so have cased the burden in other directions. Mr. McCombs stated that the New Zealand duty was a shilling a gallon. The Australian duty was Is lOd and the British duty 2s, and beer did not cost the Australian any more than it did the New Zealander. Ho did not suggest the Prime Minister should go as far as the other two countries cited, but as an example, he estimated that if the New Zealand duty was increased to the Australian rate, the extra revenue would be £600,000. Mr. H. S. S. Kyle (Reform —Riccarton) twitted Mr. McCombs with wanting to raise the price of the working man's beer, a move that might ltot be very popular- in Lyttelton. x Replying to Mr. McCombs' suggestion, thb Prime Minister pointed out that the Unemployment Bill proposed a levy of 30s a head, and it was felt that was sufficient to ask the working man to pay without putting up the beer duty too steeply. The increase would be passed on to the consumer. It was estimated the extra duty would produce £17,000 which was quite enough to ask. OPINIONS OF MEMBERS. REPLIES TO QUESTIONS. SHORT TITLE PASSED. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Wednesday. The short title debate on the Customs Amendment Bill was commenced in the House of Representatives to-day. Replying to a question, the Prime Minister, tho Hon. G. W. Forbes, said it was not correct to contend the Government was budgeting for a surplus. It had taken an optimistic view of the situation and had kept its estimated revenue as close, to expenditure as it had been safe to do. He agreed that rubber soles actually did conic into competition with New Zealand leather, but it would not be possible to give protection to local tanneries by a duty on such imports. Mr. Forbes, said he thought the reduction in the duty on watches would be sufficient. He believed there was a handsome profit made on the sale of watches, and it was not too much to expect firms to yield a little of this return to aid the finances of the country. Mr. 11. T. Armstrong (Labour—Christehurcli East) said almost every industry was to some extent dependent on petrol. Tho increase in tax created an undue additional burden in this direction and it was also unfair to city and suburban motorists, who seldom, if ever, used a back block road. Mr. H. M. Rnshworth (Country ParlyBay of Islands) said the tax on petrol was all right as long as it went hand in hand with a proportionate derating of farm lands. It seemed, however, that the primary producer was going to have his burdens increased. The Leader of the Labour Party, Mr. H. K. Holland, said the Russian oilfields produced an enormous quantity of petrol and could market it below world parity. New Zealand, on the other hand, after it bad supplied all the meat Britain required, still had to look further afield for a market, and he suggested that an agreement, could be negotiated with Russia for the supply of petrol in return for meat. Mr. Holland stated the price of petrol in the United States averaged 12 cents. The value of the spirit when it reached New Zealand was 7|d a gallon, and yet tho wholesale price was Is lOd for first grade and Is 9d for second grade. He asked what was the reason for the wide margin between these figures. The short title of the bill was passed at midnight. The Leader of the Opposition, the Rt. Hon. J. G. Coales, moved an amendment seeking to allow the free entry of certain animal foods, including horse and cattle cake. The present duty is 20 per cent. British and 40 per cent, general. The amendment was defeated by 45 votes to 24. Mr. W. J. Poison (Independent—Stratford) then moved a further amendment seeking to procure the free importation of wheat used for animal foods. (Left sitting.) SIR THOMAS SIDEY. RESUMPTION OF DUTIES. [iJY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Wednesday. Sir Thomas Sidey, Leader of the Legislative Council, who has been indisposed for three weeks, during which lie received treatment in a private hospital, resumed his duties to-day. PROGRESS OF MINOR BILLS. [IIY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Wednesday. In order that the Apprentices' Amendment Bill and the Scaffolding and Excavation Amendment Bill might be referred to the Labour Bills Committee, the House agreed 10-day to read both measures a second time pro forma.

PETROL, TAX REVENUE.

METHOD OF ALLOCATION.

PREVIOUS BENEFIT TO TOWNS. BACK BLOCKS IN NEED OF HELP. [by telegraph.—special reporter. ] WELLINGTON, Wednesday. Exact information concerning the directions in which the Government proposed to allocate the sum of £134,000 carmarked from petrol taxation for additional expenditure on back-block roads was sought by Mr. K. S. Williams (Reform— Bay of Plenty) when speaking on the Customs Amendment Bill in the House of Representatives this evening. Mr. Williams inquired whether the amount of £134,000 was additional to the sum of £75,000 expended last year, or whether the smaller amount would be absorbed in the greater. He mentioned that he had heard it suggested that some of the money would be used to subsidise unemployment relief works, and he invited an assurance that the extra money would go direct to the roads. Mr. H. G. R. Mason (Labour —Auckland Suburbs) asked whether any provision was contemplated by which the extra petrol taxation would go in the relief of rates. Several othei members asked that various points in connection with the expenditure from petrol taxation should be cleared up. Road User Should Fay. Replying, the Prime Minister, the Hon. G. W. Forbes, said it was thought that the road-user should pay the cost and the payments had accordingly been transferred from the Consolidated Fund to this special tax. The idea that the petrol taxation was the property of one class of the community was wrong. He repudiated any suggestion that the Government was breaking promises. Previously, a sum of £200,000 was transferred from the Public Works Fund to the Highways Board Fund without interest. The interest on that money came from general taxation, and all the Government was doing was to transfer that charge to special taxation, and the board and the local bodies would get their money from that tax. What was over after the board and the local bodies had been met would be used to assist back-block settlers. He had always been of the opinion that the money spent by the Highways Board had been mainly spent in the vicinity of the towns and where settlement was closest. One had only to notice the concrete and bitumen roads near the cities to see that that was the case. Auckland and Wellington were two instances of that policy. Provision of Special Clause. He claimed that the towns had got the greater advantage from expenditure from the Highways Fund, and that was why this money was being ear-marked for the back blocks, which had been neglected so long. Mr. Williams would see later that there would be a special clause dealing with the allocation of the money. Mr. Forbes said that Mr. R. A. AVright (Reform —Wellington Suburbs) had protested very strongly against the extra duty of threepence on petrol, and Mr. IT. T. Armstrong (Labour —Christchurch East) had said the effect would be to impose a burden on all industry. On the other hand, Mr. Forbes pointed out that Mr. H. M. Rushworth (Country—Bay of Islands) and Mr. W. .T, Poison (Independent—Stratford) had headed a deputation to him asking that the increase should be lid a gallon. What would Mr. Wright say if that suggestion had been adopted ? Mr. Wright: I would have fainted. (Laughter.) Mr. Poison: It was only a suggestion. PRICE OF CASE WHISKY. THE REDUCED DUTY. UNCERTAINTY IN TRADE. For the time being Auckland wine and spirit merchants are unable to say just what effect the revised duties announced on Tuesday will have on the price of case spirits, of which whisky is the most important. When the exemption for under-proof spirit was abolished in July, the effect was to raise the duty on case whisky from approximately 5s a bottle to 6s 4d. The retail price, however, was increased from 13s 6d to 14s 6d, the trade carrying tho remaining 4d. The exemption formerly extended only to spirit 16.!) under-proof, whereas case whisky approximates. 22.4 under-proof. It. has not yet been stated which figure is to be the limit of the restored exemption, and in the meantime the trade cannot say what the reduction of duty on case whisky will really amount to, or what price reduction should be made. WESTERN MAORI SEAT. REFORM PARTY CANDIDATE. ADDRESS GIVEN TO NATIVES. [BY TELEGRArH. —OWN CORRESPONDENT.] TAURANGA, Wednesday. The Reform candidate for the Western Maori seat, Mr. H. H. Piahana, addressed a gathering of natives at Judca, near Tanranga. He outlined the merits of the Reform Party and, as a resident of Tauranga, appealed for the support of the local natives.

PROTECTIVE CLAUSES.

CASES OF EXPLOITATION. SPECIFIC POWERS PROVIDED. TREATMENT ON THE MERITS. [BY TELEGRAPH-—SPECIAL REPORTER ] WELLINGTON. Wednesday. The opinion lliat there was adcquale safeguard in the Custuins Amendment Bill against exploitation under the protection of increased duties was again expressed by Uie Prime Minister, the Hon. G. W. Forbes, when replying in the House this evening to points raised during the short title discussion on the bill. Referring to the power contained in a clause of the bill 'for the reduction or rescission of duties if it is considered that consumers are being exploited, Mr. borbes said it was considered that specific power covering certain duties was preferable to general powers with which the Crown was vested under previous Acts. It had been stated that if an arrangement were made between manufacturers concerning price levels, the Minister would not have power to deal with the situation adequately. Mr. Forbes said, however, that this was straining .the point unduly, for the clause did enable the Minister to deal with any case of exploitation. It was recognised that there might be instances in which rising.charges would force an industry to increase prices to the consumer and in that case the Government would use its discretion. Possible Tixber Charges. Every case would have to be treated on its merits. As an example, it was not known at the present time what might arise in the timber industry, one of those protected by the new tariff, which would make it imperative for charges to be increased. It was necessary that power should be given in order that reasonable variations in prices would not result in hardship to the industry by stringent action being taken against it. As a result, wide general powers were given the Minister concerning action against exploitation. This concerned the general tariff, but the present Government had considered it wiser to make the new duties subject to a specific power. As pointed out, the power now suggested related only to those revisions being made at present. It had been said that the new duties did not give much increased preference to British imports. It had to be remembered that the main idea- behind the new tariff was the collection of additional revenue. The Government had to choose between customs revenue and direct taxation, and the Prime Minister said he did not disguise the fact that he had been actuated chiefly by the need for more revenue. Revenue Prom Direct Taxation. Jt was hoped to get an additional £BOO,OOO from the new customs duties and a similar amount from further direct, taxation. What the Government lost in customs revenue it would have to make up by means of direct taxation. Referring to the duty on confectionery the Prime Minister said that one member had suggested it should be increased, but only one manufacturing firm in the country had sought an increase, all the others being perfectly satisfied with the present arrangement. There had also been a suggestion by the member for Auckland Suburbs (Mr. H. O. K. Mil son'), that the duty on wines should be raised, but lie thought it was quite high enough and that local manufacturers were sufficiently protected. DUTIES ON BOTTLES. LITTLE EFFECT LOCALLY. SUPPLIES FROM PENROSE. " The higher duties on imported bottles should occasion little worry," said a leading Auckland chemist yesterday, when discussing the announcement that the Government was increasing to 25 per cent, ad valorem tho rates on British-made bottles that, previously were 15 per cent, for large-sized bottles and 20 per cent, for those between ono ounce and eight ounces capacity. Members of the Northern Pharmaceutical Society staled that, as chemists were being supplied now with Auckland-made bottles there was little chance of tho increased duties on imported bottles affecting chemists' prices. The importation of Japanese bottles, now that the duty on the foreign article had been increased to 50 per cent, plus surtax, would be stopped, as it would never pay to bring them into the Dominion and meet local competition. The quantity of bottles coming in from Britain was not very large. The manager of a leading drug company stated that his firm used a preponderance of New Zealand bottles. "1 ho glass manufacturing company at Penrose is turning out very satisfactory bottles at satisfactory prices," he said. " Before the company started operating at' Penrose about seven years ago eight-ounce bottles cost 27s a gross; to-day the locallymade bottles cost 22s 6d to 25s a gross, an appreciable reduction. They are well made and serve all ordinary purposes." The representative of an Auckland brewery said his firm used exclusively Penrose bottles. " We have not imported a single bottle since bottles were turned out at Penrose," he said, "so the new duties will not trouble us. Wo believe in supporting the home-made article. The company is turning out a very good bottle, the plant is as modern as any in tho world and the prices compare very favourably with world market values. ' It is quite true the company has been working short time and I hope tha increased duties will help to improve matters."