EVENTFUL WEEK

New Zealand Herald, Volume LXXIV, Issue 22850, 4 October 1937, Page 13

EVENTFUL WEEK

DOMINION POLITICS SECOND LABOUR BUDGET national tarty policy activities in house rBT TELEGRAPH —SPECIAL REPORTER*] WELLINGTON. Sunday Political developments of outstandire importance have occurred either in or associated with the activities of Parliament during the past week. Iwo opposing documents have been put hefore the country—the second Labour "Rndeet presented to the House of Representatives last Tuesday by the Minister of Finance, the Hon. W . Nash, and the broad statement of "eneral policy issued subsequently on behalf of the National Party by the Leader of the Opposition, tho Hon. A. Hainijton. As a result, argument in the House is likely to be intensified._ The Budget, some months late in its appe ar!ince owin £ *° y navol( l" able delay in starting the session, was the main point of interest at the becinning of the week. The general expectation beforehand was that tho rates of taxation imposed last year would be sufficient to provide the Government with greatly increased revenue in a full year of higher incomes. Reactions to Budget It was accepted as inevitable that the Government's policy of spending would require the retention of emergency taxes levied during tho depression years, and such proved to be the case. For a financial year already half completed the estimated revenue is £%i 778,000, and of this the Government proposes to spend £34.728.000. . Budget night in the House provided an interesting study of political reactions to a policy of higher taxation. A feature was the apparent apathy of private members on the Government benches. > " . The opinion was expressed fairly generally in political circles that as a statement of the financial position of the country the Budget was far too long and far too historical in its survey of past events. On the other hand, such subjects as the use of the public credit, interest rates, and the national superannuation and health insurance schemes received only passing mention. Expansion of Credit

Government speakers have already admitted that ihe issue of credit in the Dominion has been expanded to provide money for housing and to finance the guaranteed price scheme. The Opposition has been eager to obtain information as to the exact amount of additional credit issued, but *o far the only actual figure provided is the £650,000 representing the estimated deficiency in the Dairy Industry Account.

This is admitted by Mr. Xash to be an issue of new credit to strengthen the position of the dairy industry, but in spite of all requests from the Opposition the Minister has remained silent regarding" the full extent to which expansion has taken place. C\os« on the heels of the Budget came Mr. Hamilton's declaration of policy, published on the morning after ie had opened the financial debate with searching criticism of the Governpient's proposals for high taxation and increased expenditure. The objectives of the party were outlined and many of them were frankly admitted to be the same asf those of Labour. However, differences in method were clearly enunciated and there was also a definite promise of reduced taxation. Well-Timed Declaration

The statement has not yet been the subject of official comment from the Government side of the House, but it is bound to figure largely in speeches .ill the Budget debate during the coming week. Opposition members are firmly of the opinion that Mr. Hamilton has made his policy declaration at a psychological moment. They are confident that his general appoach -to the political situation has served to show lip in a clearer light what they regard as definite weaknesses in the Budget. Already there has been proof that the question of taxation is likely to be the main subject of discussion during the financial debate. The Opposition attack on this point was strongly launched by Mr. Hamilton_ on Thursdav night, but the Prime Minister, Mr. Savage, and his supporters have defended their demand for additional revenue by pointing to the proposed ex- „ pansion in social services. The taxation philosophy of the late Viscount Snowden has also been quoted freely by Government members. It is not the amount taken in taxation that matters, they say. but the amount that the taxpayer has left. 1 Other Business ol House „

The remaining business transacted in the House during the week was of no Rreat moment. Before tho presentation of the Budget the Industrial Conciliation and Arbitration Amendment Bill, providing fpr the restoration of the industrial status of clerical and other workers, was given a speedy passage. The brief discussion on the measure could hardly be dignified by the name of a debate and the bill was passed without amendment.

_ Numerous Ministerial replies to questions by private members were circulated on Wednesday nfternoon,_ but these replies are almost invariably guarded and there were no striking revelations of Government policy. The only other topic of discussion during the week was the report of the proceedings of the Imperial Conference. This was the subject ot a debate *hich lasted throughout Wednesday evening and Thursday afternoon, but tended at times to become discursive. The best contributions came from the Prime Minister, the Minister °f Defence, the .Hon. F. Jones, and the Rt. Hon. G': W. Forbes (Opposition— Hurunui). Prospects Tor The Week There were one or two tense moments during the debate when Mr. J. Hargest (Opposition—Awartia) voiced disappointment at the allegedly inadequate expression of New Zealand's loyalty at the Imperial Conference. His T 'ews were- echoed on Friday by Mr. W. J. Poison COpposition —Stratford), but following a strong protest from Mr. Savage the Speaker insisted on an apology. i 1 Every member has the right to B peak for an hour in the debate on tna Budget and it seems certain that, the discussion will continue throughout the coming week. It is expected that the Rt. Hon J. G. Coates, Minister of Finance in the last Government, "Will take part in the discussion, probably on Tuesday night. At present the order paper, is denuded of Government hills, but tf\e passing of the Estimates fas to follow the financial debate, and it may be some time yet before the House settles down -to deal with legislation. /