PARLIAMENT.

New Zealand Herald, Volume LXIX, Issue 21159, 16 April 1932, Page 11

PARLIAMENT.

adjustment bill.

heal test next week.

the cot in pensions.

MB. FORBES' DEFENCE.

DEMANDS OF FINANCE.

[by TELEO H A PIT. —SFECI At, REPORTER.] "U ELLINGTON, Friday

Although the second reading of the Rational Expenditure Adjustment Bill W as accorded bv 46 votes to 25 in the House of Representatives to-day, t>p real test of tho provisions in the measure will applied next week, when the Committee stages are taken.

Several Government members intimated (], e y would vote for the secon 1 reading because of certain good points in tho till, but they made it clear that, particularly on the pension reductions proposals, their votes would be cast adversely. It is'also certain that Labour opposition to the salary reductions in the Civil Servis will be supported by some Government members, and several interesting divisions are therefore in prospect. A Daylight Sitting. An arrangement was made among the parties for to-day's sitting to begin this morning and conclude in time to allow members to depart for their homes early this evening. With that object in view, most of the speakers did not occupy their full half-hour, and the Prime Minister, the Rt. Hon. G. W. Forbes, was on his feet replying to the debate about the tinio the House normally adjourns for tea.

One of the most critical speeches which came from the Government benches during the debate was delivered to-day by Mr. A. Harris (Waitemata). He claimed that the constant economy cry was doing incalculable harm. Prosperity would not be restored bv. destroying spending power and by making wage reductions. He believed the Government's policy was entirely unsound. He would vote for the second reading because there were portions of the bill with which lie agreed, but he would vote in Committee against the salary cuts in the' Civil Service and the reductions in old-age and widows' pensions and those of soldiers' dependants. Mr. Samuel's Stand. A speech in somewhat similar vein came later in the day from Mr. A. M. Samuel (Thames), who made an identical Stand 011 the salary and pensions questions. One would like to be able to deal with this question of reductions free from any responsibility in regard to finance," said the Prime Minister in reply. "No one has a monopoly of sympathy for pensioners, but we cannot let our hearts rule rar heads. Unless we exercise the utmost economy and prudence we could not make pension payments at all.

"It lias been said it is not courage on the part of the Government to take the stand we have. I say that if we do not face the question of economy in the Public Service, there is every possibility that limbless soldiers, widows and others will not get their pensions at all, and, honestly, I have not the courage to jeopardise those payments. I claim to have as much sympathy as anyone with those who will have to feel the effects of the cuts, but we must have our finances so ordered that we can carry out our obligations. Only by the most careful administration and most rigid •conomy will that be possible. No Misconception. "1 don't want any misconception in regard to our purpose. What did the Labour Government in New South Wales do ? It- cut 22j per cent, off the pensions of soldiers, and there is no economic pension in that State. Ulie reduction we have made here is in regard to the economic pension. I say again I have not the courage to let our finances get into a state where we can t pay pensions. ' We are doing the minimum in this bill.

"We are doing more than Britain is doing, for we are not aiming at balancing tha Budget. I challenge anyone to say we have not gone to the furthest limit in the endeavour to make the reductions as small as possible." Concluding, Mr. Forbes expressed appreciation for the; moderate nature of the Speeches.

Those who voted with the Labour Party against the second reading were Messrs. H. Atmore and G. C. Black.

The Committee stages will be begun the House reassembles on lucsda\, and is; is almost inevitable that late silting hours will be necessary if the hill is to be passed before next weekfiul.

UNEMPLOYMENT BILL. COUNCIL PASSES MEASURE. NO AMENDMENTS MADE. [B* TEI.EGRAPH. —PRESS ASSOCIATION'.] WELLINGTON. Friday. The Unemployment Amendment Bill considered by the Legislative Council *t the Committee stage to-day. Several members urged that a clause shoulr] be insnj ted .to provide that those *ith savings in hand should not be defcarierl from securing employment. The Leader, Sir James Pan - , said there nothing in the Act to prevent this. " was a matter of administration The bill was reported from Committee Without amendments. Jt was then read a third- time and passed.

SCHOOL DENTAL SERVICE. not to be sacrificed. ASSURANCE BY MINISTER. [B* TELEGRAPH.—PRESS ASSOCIATION.] WELLINGTON. Friday, to Mr. A. J. Stallworthy °vernnKmt—Eden) in the House of yTresentntives to-day, the Hon. J. A. ° Un g, M nistor of Health, said he could a " assurance that he had no know- - !ln ,V proposal to sacrifice tho Oo ' dental service as part of tho n °my plan.