THE BUDGET DEBATE.

New Zealand Herald, Volume LXVIII, Issue 20947, 10 August 1931, Page 11

THE BUDGET DEBATE.

ATTITUDE' OF REFORM.

NO ADVERSE MOTION.

TAXATION PROPOSALS. j FRAUGHT WITH POSSIBILITIES. r BT TELEGRAPH. —SPECIAL REPORTER.] L 5 WELLINGTON, Sunday., Having learned the nature of the Prime [Minister's proposals, as encompassed by the Budget, the // country awaited with probably the keenest expectation for some years the opening of the Budget debate. Jt was not until then that it was known whether the Reform Party, which admittedly held the fate of the Government jn its hands, would take decisive action or await the introduction of the taxation hills. » On Wednesday evening, however, -the prime Minister again breathed freely, because Mr. Coates then intimated that his party would agree to the principle of balancing the Budget, which meant that B0 adverse motion would be moved in this debate. The speech of the Leader of the Opposition, however, and those which followed from his side of the House were devoid of any guarantee that this attitude ■vrould be maintained when the House was asked to approve of the extra taxation. One Reform member, Mr. A. E. Ansell, ■went so far as to say in his speech on Friday that the Reform Party would not Accept the taxation proposals, and added significantly "that should bo plain enough." Lengthy Deliberation. The members of the Reform Tarty did jot reach agreement on these vital points \rithout much deliberation. Indeed, to those who noticed the repeated concentration of members of the party in the caucus room it seemed that they were a long time making up their minds. It was, in 7 fact, well known that the Reform Party had difficulty ' in reaching a decision on the Budget debate itself, and there were indications that even if the Leader of the Opposition desired to approve the Budget in full there were many of his rank and file who would vote Ogainst him when the test came. A point which attracted some attention ,was that made by the Hon. W. Downie Stewart, who was Minister of Finance in the last Reform Government. He expressed his approval of the principle of bnilding up financial reserves in times of prosperity £o that they might be available to assist the National Budget in periods of depression. His note 9f warning on the dangers of excessive overseas borrowing was listened to by crowded galleries, and his advice to the Government to revert to the Reform Party's policy of tapering off in borrowing brought an enthusiastic chorus of "Hear, hears," from his own colleagues. Labour Party's Hostility. The Labour Party remains unequivocally hostile to the Budget proposals. The leader of the party, Mr. H. E. Holland, stated in his speech that his party would challenge every item, and he expressed confidence of securing Reform support in eoma directions.

The next few weeks will be brimful of interest. The possibility of the defeat of the Government is never lost Eight of by the Prime Minister, who, when the Customs and Income Tax Bills come down, may find himself facing an adverse vote with the prospect of. an early .appeal to the country. The Budget debate is likely to last all the coming week and, as most of the members who have so far taken part have used up the whole of the hour allowed them under the Standing Orders, it is possible that with those yet to be heard the discussion may occupy the greater part of the following week. There is a great deal of prospective legislation on the stocks, but if a crisis is precipitated on the Government's vital proposals, much of this will be jettisoned Similarly, several important select committees have yet to report on questions of consequence referred to them. Among these is the Trading Coupons Bill, which has long been delayed by drafting difficulties. It will in all probability make its appearance this week. *AS LIGHT AS POSSIBLE." PRIME MINISTER'S CLAIM. REPUTATION OF DOMINION.

fill TELEGRAPH.—OWN CORRESPONDENT.] CHMSTCHURCH, Sunday. "I have some trepidation in corning to speak to you after the Budget which I recently delivered," said the Prime Minister, Rt. Hon'. G. W. Forbes, at the opening of the Winter Show on Saturday evening. "When I claim that it is a! historical Budget I really hope that it will prove so, especially so far as the State deficit is concerned. When we realise the possibility of it reaching £7,000,000 "v.'e know there lias never been such a deficit before, and we do not want it again. With such a prospect before us we should be wrong if we did not do everything ye could to balance the Budget. "Everyone will agree that it is the duty ef the Dominion to meet its liabilities and to balance the Budget. While I was in England I was struck by the fine opinion in which New Zealand was held. That reputation was built up on the fact that .we have always fulfilled our obligations to the letter, and I am confident that the desire of the people is to continue on those lines. "In view of the expected deficit and the fact that the taxpayer has been asked to find only £1,800,000 by additional taxation,- I think'that it has been made as light as possible. This is not a party question. It is our duty to mak& every sacrifice to maintain tho reputation of the .country." /