PARLIAMENT IN SESSION

New Zealand Herald, Volume 82, Issue 25289, 24 August 1945, Page 8

PARLIAMENT IN SESSION

VIEWS DEBUDGET TAXES AND INDUSTRY CRITICISM OF POLICY REHABILITATION NEEDS (P.A.) . WELLINGTON, Thursday Two local bills were considered by the House of Representatives this afternoon before the Budget debate was resumed. Notice of several questions was given and one was answered in part. Continuing the debate, Mr C. M. Williams (Government —Kaiapoi) said that Mr W. J. Broadfoot (Opposition— Waitoino) had claimed that the Government by exporting timber to Australia had reduced the number of houses which could be built in New Zealand. The fact was, Mr Williams said, that owing to the war New Zealand's supply position for hardwoods'for railway sleepers, electric power, reticulation and for many industries had become critical. Australia was the chief source of supply and by what was virtually a barter agreement Australia undertook to meet New Zealand's essential needs in return for supplies of softwoods from the Dominion. That was an agreement they must honour. Actually the Dominion had received far more timber from Australia in recent years than it had exported, Mr Willintns continued. But for the exports under the agreement they would have had fewer houses not more, because it would have been, necessary to divert men from the timber mills to the bush to f'ut sleepers. Mr Williams urged the adoption of a universal family allowance. Ho contended that the present system penalised those who were earning between £■loo and £SOO a year and they were mostly wage-earners. What the People Wanted Mr C. M. Bowden (Opposition—Wellington West) said that the Minister of Finance obviously wanted to finish the present financial year with the largest possible surplus so that he could make the biggest possible reduction in taxation next year. What tho people wanted was a reduction in taxation this year so that business could be rehabilitated. The only real wealth was the production of goods, but there was no indication in the Budget as to how that production was to be increased. There was need for a strong and definite policy regarding farming production and there was also need for a policy for industry. Industry was being bumpered by taxation and lack of manpower while the Government was clinging to its policy of control and was holding enormous staffs to carry out that policy, said Mr Bowden. He wanted to make it clear that lie was not including rationing in his comments on controls, because when goods were in short supply rationing was necessary and just. The Budget showed no real plan for rehabilitation, Mr Bowden continued. The Minister of Rehabilitation should be freed, from his other portfolios and allowed to devote his. whole time to the men and women being discharged from the forces, with power to coordinate the resources of other departments necessary to complete a rehabilitation plan. He should also have charge of the financial aspect of rehabilitation, because while the State Advances Corporation was a most efficient organisation it did not possess the elasticity necessary for a successful rehabilitation scheme. The Drift to the Towns

When the debate was resumed tonight, Mr 1). C. Kidd (Opposition— Waitaki) said the Labour Government had claimed that it would help the small farmers, but it had proved the worst friend the small farmer ever had. There had been more laud aggregation under Labour than ever before, and that was on,e of the problems the Minister of Lands would have to grapple with today. In rural districts of the South Island there were empty houses everywhere. The Minister of Agriculture, Mr Roberts: Not up our way. Mr T. H. McCombs (Government — Lyttelton): There are plenty down our way. Mr Kidd said that people had gone off farms into the towns because of the | Government's policy of higher wages and shorter hours. If primary production was the key to the country's prosperity, that drift had not only to be stopped, it would have to be reversed. Farmers could not get good labourers because of the Labour policy, which taxed the farmer so that he could not pay them, and offered them better conditions in the towns. Labour had promised to put hydroelectric power into every home in country, Mr Kidd continued, but there were thousands of farmers' homes still without electricity. When the National Party became the Government it would give the farmers electric power and would supply them with electrical equipment free of sales tax and duty.. Obligations to Servicemen Mr R. M. Macfarlane (Government— Christchurch South) said that the Leader of the Opposition had complained that, the mufti allowance of £25 to demobilised servicemen was inadequate, but had failed to mention that after the last war tho allowance was only £5. The main concern of the Government this year was to see that obligations to returning servicemen were met. The fact that the war had been won did not mean that there would not be heavy financial responsibilities during the next financial year. If was the job of any Government in office at present to see that the necessary financial sacrifices were made to enable obligations to the men who had fought overseas to be met fully. > The Opposition, in talking about taxation, overlooked the fact that a huge amount of money was tied up in Now Zealand today. Many people who were clamouring for reduction in taxation had plenty of money at their disposal.

Mr E. "M. Algie (Opposition— Remuera) said he felt that tne Minister of Finance must have suffered when Mr Langstone was expounding his financial principles the previous evening, because much of what'Mr Langstone said was hot air. Mr Langstone had claimed that the taking over of the Bank of New Zealand was the most important question today. Mr Algie said he could not agree with that, because ho considered rehabilitation, housing, full employment and a proper standard of living were more important. Mr Langstone had told his own electorate that there was no political motive in taking over the bank, Mr Algie continued, but he had told the Labour conference that if they took over the bank they could win all 80 seats. Mr A. S. Richards (Government — Roskill): That is what stings. .Mr Algie said that if the case for taking over the bank wore really a good cage the people of New Zealand should be told anotit it, but instead of official Government statements the people had to be content with Culminations, innuendos and nebulous reasons. . . Mr Roberts said that the Opposition members had attacked his department because the price for wheat was only (is' 6d a bushel. Wheatgrowers had agreed to (5s Od a bushel lor 200.000 acres. Then the Minister had offered a bonus rising fo 7s 3d a bushel for 250.000 acres and that acreage had been dropped to. 235,000. Farmers had experienced a very difficult season and sowings had been interfered with, but the Minister could not understand the logic of arguing that the price offered for the maximum acreage should now be regarded as the minimum for all wheat grown. The House adjourned at 10.30 p.m. QUESTION ABOUT TAXES TRADE UNIONS' POSITION (P.A.) WELLINGTON, Thursday In the House of Representatives this afternoon, Mr A. S. Sutherland (Opposition — Hauruki) gave notice to ask the Minister of Finance, Mr Nash, if he would advise the House whether it was correct that secretaries of trade unions had been informed that half their remuneration could he regarded as expenses, and therefore exempt from social security, national security and income taxes and, if so, would he instruct the Commissioner of Taxes to allow the same deduction in the case of secretaries of similar organisations. Miss M. B. Howard (Government — Cliristchurch East): I'll reply to that now —no. Mr Sutherland, continuing with his question, asked if the Minister was aware that the Commissioner of Taxes had ruled that, for the purpose of income tax assessment, trade unions should he regarded as friendly societies and their funds exempted from taxation and, if so, would the Minister instruct that the same concession be extended to other organisations of a like nature. Mr Nash said lie could answer the first part of the question at once. It was not correct. Opposition Members: What about the second half? The Minister said that could go on the order paper.

WORK IN MINES BUSINESS MEN'S INTEREST ATTITUDE OF THE UNION An invitation to members of the Auckland Chamber of Commerce to spend a day in the mines at Huntly was issued by the Northern _ Miners' Union, which offered to provide tools for work. The chamber had asked the miners' union in June to arrange for a party of business men to visit the mines and have a round-table conference with the miners, as it was felt that much good would result from such a discussion, "Mv union is anxious that members of your chamber should have an opportunity of examining the coal situation at first hand, so as to he in a to discuss the situation intelligently with our members." stated the union's secretary, Mr H. Hall, in a reply. "1 will arrange, if you are agreeable, for as many of your members as desire it. to he supplied with a working place each, and the necessary tools, together with an experienced miner as a mate, in order that you will know exactly what is required of a miner in the performance of his duties." The chamber replied to the union that it had always been led to understand that coalmining required skill and training, and in view of the lack of experience in mining of its executive members, and as many of them were not. in the prime of life, it would he difficult for them to carry out the union's suggestion. It was suggested, however, that August 4 would be a suitable date for a conference. Nofurther reply having been received from the miners, the chamber at its meeting yesterday decided to pursue the matter further. JULY RAILWAY LOSS ' SOUTH ISLAND DEFICIT (0.C.) WELLINGTON, Thursday A working loss of £'39,025 shown in the railway accounts for the four-weekly period ended July .31 compares with a profit of £'105,972 for the corresponding period of last year. South Island lines were responsible for the deficit, expenditure there exceeding revenue by £58,982, while North Island railways showed a surplus of revenue of £19,9.">7 and miscellaneous services yielded a profit of £33,322 for the period. The gross I revenue from all sources was £1,076,83! for the four weeks and expenditure £1,082,537. For the same period of last year revenue was £1.002,874 and expenditure £956,902. For the period from April 1 to July 21, gross revenue was £4,577,30/, against £4,183.421, and expenditure £4,231,869, against £3,805,158, the net revenue for the period being £315,438, against £378,263.