BUDGET IN COMMONS.

New Zealand Herald, Volume LXVIII, Issue 20977, 14 September 1931, Page 9

BUDGET IN COMMONS.

POLICY DEFENDED. USE OF ORDERS-IN-COUNCIL. CONVERSION PLAN IN VIEW. RESTORATION OF CREDIT. A LABOUR AMENDMENT. By Telegraph—Press Association -Copyilglit. (Received September 12, 5.5 p.m.) British Wireless. BUG BY, Sept. 11. The Prime Minister, Mr. Mac Donald, in moving the second reading of the National Economy Bill in the House of Commons, said the general policy of the Government had received the sanction of the House, and it was now setting its hands to the details. The emergency had been allayed for the time being, but the financial position had to be made sound as well as the Budget balanced. While new resources were being put into the Treasury economy must also be made effective, and the bill giving the Government power to issue the necessary Orders-in-Council constituted, a procedure as drastic as the savings which were being effected. The schedule in the bill dealt with the departments which would be affected by these Orders-in-Council. The figures of the scheme worked out as follows: — £70,000,000 had to be found by economies and £80,000,000 by taxation, of which £57,000,000, considerably more than half, had to be found by direct taxation, and £20,000,000 was tho provision made for tho sinking fund. Continuing, the Prime Minister said that when the new Government came in, it was greatly aided by tho work done by its predecessors, who proposed a cut, not of £70,000,000 but £56,000,000. He understood that the Opposition intended to fight the Government's programme right through, but he must emphasise that they wore passing through a policy which had been begun by tho previous Government before its resignation. Responsibility of Opposition.

Tho Prime Minister stated that the former Ministers now in Opposition could not remain froo from responsibility for a largo proportion of tho drastic cuts which had been introduced.

In tho background was the war debt conversion scheme, not estimated as yet, but which would be launched at tho earliest possible opportunity, and which would effect considerable, savings. One dramatic moment occurred during the speech, when the Prime Minister remarked: "I speak for Labour," and on being interrupted by tho Opposition exclaimed : "They can take the label from my back, but they cannot take it from my mind." Referring to the cuts in the unemployment benefit, tho Prime Minister said they considered it their imperative duty to put unemployment finance in such a sound position that everybody having financial transactions with Britain, especially in the forms of loans, would be satisfied that her financial fabric was sound. Labour Objections to Bill. The former Home Secretary, Mr. J. R. Olynes, moved as an amendment: "That the House, while recognising the necessity for preserving tho country's finances on a sound basis, cannot accept proposals which deprive the masses of tho people of tho necessities of life while others remain in enjoyment of luxuries, and which aggravate unemployment by restricting the purchasing power of the wage-earners, nor can the House approve of a bill which abrogates Parliamentary control by authorising Orders-in-Council designed to supersede existing Acts of Parliament or reverse a settled policy without the specific assent of the House."

Mr. Tom Johnston (Labour) said the Government was creating a class war. There were further recriminatory passages when Mr. J. H. Thomas revealed that a sub-committee of the late Cabinet, which included Mr. Henderson, had proposed cuts totalling £78,000,000, not £56,000.000. The debate was adjourned.

RESIGNATION OF SEAT. REQUEST TO MR. MacDONALD. CONFIRMATION AT SEAHAM. (Received September 13. 5.5 p.m.) LONDON. Sept. 12. After three hours spent in discussion, a delegate meeting of the Senham Labour Party, by 40 votes to 39, confirmed the executive's resolution requesting Mr. MacDonald to resign his seat. WORLD PROSPERITY. IMPORTANCE OF BUDGET. VIEW OF FRENCH PRESS. PARIS, Sept. 12. Le Journal says England's friends, particularly France, will follow the Government's efforts at rehabilitation with an interest which will be all the livelier in that the consolidation of Britain's credit is one of the most essential conditions for the return of the world's prosperity. This comment is typical of the attitude of the French press to the Budget. • RECEPTION OP BUDGET. FAVOURABLE COMMENT. TRIBUTE FROM NEW YORK. British Wireless. RUGBY. Sept. 11. The Government's taxation and economy proposals have had a generally good roception. Financial opinion has reacted favourably to the Budget and British funds to-day wero marked up. Judging from foreign press comments which have reached London, other countries, including the British Dominions, also are greatly impressed by the unequivocal manner in which taxation has been tackled. Typical remarks are those in the New York Times, which describes the Budget as "a striking testimony to the determination of the British people to keep at all costs their public finances in order." The South African newspaper Cape Times saysf it regards the Budget as "a brave, honest effort to meet the serious situation."-