SESSION'S WORK

New Zealand Herald, Volume LXXIII, Issue 22469, 13 July 1936, Page 10

SESSION'S WORK

RESUMING NEXT WEEK BUDGET PREPARATION KEEN INTEREST IN POLICY MANY IMPORTANT MEASURES [BY TELEGRAM —SPECIAL REPORTER] WELLINGTON, Sunday Only a week remains for tho Government to completo its preparation of the business to be submitted to Parliament when the House of Representatives resumes on Tuesday, July 21, after its midwinter recess of five weeks. During the week just passed Cabinet Ministers have had a comparative respite from the task of shaping future legislative policy, but the coming week is expected to see a resumption of lengthy Cabinet meetings to deal with important matters which must be considered shortly after tho House resumes. The past week was a comparatively quiet one in Parliamentary circles. There was a long sitting of the Cabinet last Monday, but subsequently with several Ministers away from Wellington and others eager to take .advantage of the races at Trentham for a few hours' well-earned recreation, there was a less busy atmosphere about Parliament Buildings. Even the Prime Minister, Mr. Savage, was able to get some much-needed rest. Tours by Two Ministers Two Ministers at least will be absent from Wellington this week. The Minister of Education, the Hon. P. Eraser, left last night to travel as far south as Dtinedin to investigate matters connected with the departments under his control. The Minister of Public Works, the Hon. R. Semple, who returned from the North yesterday, will leave again to-morrow for Marlborough and the West Coast in connection with ihe resumption of work on the South Island Main Trunk and the West port-] nangahua railways.

Some consideration will probably be given by the Cabinet this week to the Labour Government's first Budget, which is in course of preparation by the Minister of Finance, the Hon. W. Nash. As yet it is too early to state exactly when the Budget will be presentecf in the House, although it is the Prime Minister's desire to have it brought forward and the debate on it opened as soon as possible after the House meets. A " Cheerful Document "

Both Mr. Savage and Mr. Nash are confident that Labour's first declared financial statement will be a "cheerful document." Naturally the possible provisions of the Budget are being kept a closely-guarded secret, but there is a feeling in Parliamentary circles that at least some revision of taxation is foreshadowed. According to present indications, it is doubtful if there will be any general lightening of the taxation burden. Although Government revenue is buoyant, expenditure is not decreasing. Mr. Nash is in favour of balancing Budgets—indeed, he told a deputation as much only last week —and the general assumption is that if relief from taxation is granted in any one direction a similar yield must be obtained from some other source. There has been some talk of the reimposition of the graduated land tax, but no doubt the greatest interest will centre in the Government's income tax proposals. A plank in the Labour Party's election platform was the abolition of the sales tax as soon as possible, but on present indications it does not appear that the revenue from that tax can be sacrificed this year. Readjustment o! Mortgages

The Government's declared policy is for the replacement of indirect taxation by direct taxation as far as is practicable, but from statements made by the Prime Minister and others it seems that a change in this direction can only be made in progressive stages. Whether the first steps in this policy of change will be taken in this year's Budget remains to be seen. In addition to his work on the financial statement Mr. Nash has also been busily engaged recently in shaping details of policy for inclusion in the Government's bills for the readjustment of mortgages on the basis of the guaranteed price to be paid for dairy products. This will doubtless be one of the major pieces of legislation in the second part of the session. Mr. Nash's Many Tasks Mr. Nash still remains the busiest member of the Cabinet. Apart from his interest in coming legislation he is charged with the organisation of the new Department of Marketing and the direction of policy of the Reserve Bank and the State Advances Corporation. It is anticipated that the guaranteed price to be paid through the Department of Marketing will be announced in the near future, as well as the Government's scheme for the local marketing of dairy products, while the financing of overseas marketing of dairy products through the Keserve Bank may shortly place the Government in a position to reveal details of its policy in connection with sterling transactions and other activities of the Reserve Bank.

Following on the announcement of the actual terms of the guaranteed price, which may be made before the House meets, the way will bo open for the early introduction of the bill designed to make preparation through the Labour Department for the organisation of farm labour under the terms of an agreoment reached some time ago between the Government and representatives- of the farmers. Restoration oi Wages

Among the other important legislation to be brought down when the House resumes will be the bills restoring wage and salary cuts, increasing pensions and providing for the payment of invalidity pensions, all of which will operate as from July 1; a measure dealing with the promotion and encouragement of industry; and a bill providing for the establishment of a now State highways system. It is gathered from remarks made by the Minister of Pensions, Hon. W. E. Parry, that the new scale of pension payments will not In' fixed until the budgetary position is finalised.

The duration of the second part oi the session is still a matter of conjecture. The Estimates and other matter* arising out of the Budget will require time and it is significant that Mr. Nash does not anticipate being able to leave for England to attend to marketing matters until some time in October. It may easily bo November before the Houso adjourns.