BUDGET DEBATE

Otago Daily Times, Issue 22366, 13 September 1934, Page 10

BUDGET DEBATE

THE CLOSING STAGES DEFENCE OF THE DOMINION MINISTER UPHOLDS INCREASED VOTE (Per United Press Assui iaiion.) ■ ! _ WELLINGTON. Scplember 12. Urgency was taken for tiie Financial Debate in the House of Representatives to-day. The Government has up to the moment been very lenient with members, but tlie debate has been showing signs of dragging on for days. It is now hoped to proceed to-morrow to the committee stage of (he Customs Acts Amendment Bill ami to detailed consideration of the Estimates.

Mr A. S. Richards (Roskill) said it was a false hope thajt the Budget would bring prosperity back to the country. He considered that taxation should not have been touched, but that the unemployed and pensioners should have been reclassified and their weekly earnings increased, as that would have increased the consumptive power of the people. The Government claimed to be a farmers’ Government. It was rather surprising, therefore, that from time to time statements were made by Ministers that substantial rises in overseas prices might be expected. He could see no hope of a substantial rise coining. He protested against the changeover from the State Advances Lending Department to a mortgage corporation, as he could not see that any benefit to the country would bo derived. He contended that it was only wealthy persons and businesses that would benefit from the wage tax reduction. Not many people were receiving £2 a week or less. He criticised the expenditure on defence while the Government was not willing to spend a few thousands on old-age pensions. The House had no assurance that the defence equipment on which £300,000 was being spent would be up to date when it did arrive. He considered that the money could be better spent elsewhere. The Minister of Defence (Mr J. G. Cobbe) resumed his speech, which was interrupted by the adjournment last night. Dealing with defence, he said the guns that were coming to New Zealand bad been secured through the War Office. They could rest assured that nothing old would be among them. For the past three years the department had curtailed its expenditure wherever it had been reasonably possible to do so. The change in world conditions and in modern methods of attack and defence of nations made it necessary that New Zealand should take such steps as the existing conditions rendered necessary for the security of her people, trade, and territory. It should not be forgotten that the policy of the Empire and the dominions was purely defensive, and not in any way aggressive, but they could not overlook the fact that New Zealand stood or fell with the Empire. They could not ignore the fact that Europe was a seething cauldron today, and there should be no conflict in the views as to what was New Zealand’s duty in order to meet any emergency that might arise. The Government was not aggressive, and it wished to avoid trouble; but when the country was at stake it claimed the right to take steps to protect ourselves, and in taking any steps necessary it believed it had the support of every man and women in New Zealand. Mr W. E. Barnard (Napier): You will not have the support of the Labour Party. Mr Cobbe said that New Zealand had something worth defending. The steps taken were imperative. Every young man of average health and strength should be drilled. It was difficult to understand the mentality of those who failed to realise the dangers _ that surrounded a country whose inhabitants were too careless or too effeminate to defend it. The Government believed that it was its duty to strengthen the defences of the Dominion, and, despite what had been said to the contrary, it was going to do its duty. Mr D, G. Sullivan (Avon) said, that such a speech as that just delivered by the Minister had the effect of stimulating the war spirit and further the interests of the armament firms. He hoped the question of national superannuation would be taken up by Parliament and by the people, as it had far-reaching effects. If the people were given the security of such a fund the need for them to save would not exist. The whole economic machine would be stimulated, and such a provision would contribute to the continued maintenance of prosperity more than anything else the House could develop. He believed the Mortgage Corporation would mean the destruction of the State’s great lending departments. He did, not believe the corporation would extend to borrowers the consideration that had been extended to the various State Advances Departments. It would be run on rigid lines and the first aim would be to secure the interests of the corporation. He contended that the people were too generous-hearted to want a reduction of twopence in the unemployment tax and he hoped the Government would not persist taking it away. The Minister had admitted that no class in the community was suffering as the unemployed were suffering, and there was an opportunity to give them some increase in their funds, but the Government was making a hopeless endeavour to make itself popular at the expense of halfstarved families. Mr W. J. Poison said that the control of banking policy was the basis of sound economic life. Government control was necessary. It was absolutely necessary if the primary producer was to face the difficulties confronting him. Interest rates must be reduced, he suggested, to 3 per cent, on long-term securities. Dealing with the Mortgage Corporation he could not imagine the State handing its lending departments over to a private corporation. The State would have to stand behind the Mortgage Corporation until it was on its feet, but unless it was watched carefully the cream of the securities would go elsewhere. Mr P. C. Webb (Bullet) said (hat the only State institutions that were in a flourishing condition to-day were those which • had been bitterly opposed when they were originated by the conservativeminded people of that day. He instanced the State Advances Department, the Pub ; lie Trust, the Government Life and the State Fire Insurance Department, and the State Mines Department. Continuing, Mr Webb said that every step taken by the State showed that it could establish large industries without the support of a big bank. He contended therefore that the State should have had complete control of the Reserve Bank. He stressed the need for planning to get the country out of its difficulties, and said there was no need for the poverty which existed at the present. He dealt with events in the early war years and the developments leading up to his imprisonment for refusing to go to the war. He said the New Zealand Government was the only Government in the Empire that had applied conscription to members of Parliament. He had lost his civil rights for 10 years. He went out by the front door and returned by the front door, but he had no feelings of animosity towards the Government. The Government at that time spoke of finding work and providing for the returned men, but it was regrettable now to think that the Minister of Pensions should live in the past. He would like to se'e a scheme evolved that would get food into the homes of the people and find work for the boys and girls. He thought that all sides of the House should get together and inspire a message of hope for the people. Surely ' they could alter the present state of affairs. There was no reason why anybody should be in want in this young country, where there was food in plenty. Mr H. M. Campbell (Hawke’s Bay) said the Government bad had to do some most unpleasant things—things that in normal times most members would not have cared to stand up to. Those things had saved the country from a huge disaster. He believed that now the country was sailing along smoothly and that the next Budget would show a proper surplus. He would like to have seen a greater reduction in the unemployment tax. He appealed to the Minister of Lands to consider remitting some of the rent that had piled up againt the farmers in order to give them some hope.

Mr H. Atmore (Nelson) criticised the Government for not giving more consideration to the old-age pensioners. The

recent increase in the price of wool, he said, was due to buying by Japan, which wished to put its array into woollen uniforms. It would be better, he submitted, if the same nation would wear more woollen clothes. The Government seemed to be fighting against, the advent of the machine. It w/is trying to find manual work for boys and girls leaving school. The Government did not seem to realise that it was the consumer who had to be considered in order to improve the condition of the country instead of the producer. Without purchasing power (he people could not buy. Mr Atmore added that the only sound basis for trade with any country was goods for goods, and if New Zealand could secure cheap goods from Japan in return for her produce she should take them. Air E. J. Howard (Christchurch South) said that everything the Coalition Government had done since it took office had been against the workers and in favour of the moneyed class. Air F. Lye (Waikato) said the imposition of the wage cuts was justified, and ns soon as the country’s finances allowed it 5 per cent, of the cut had been restored. Air J. Connelly (Atid-Canterbury) said if the Government had waited till adequate provision had been made for the unemployed before the salary restoration had been made it.would have been very unfair. The civil servants had borne a heavy burden and had carried out their duties well. He suggested that stock and station agents should reduce snteresp rates by at least 1 per cent. Air P. Fraser (Wellington Central) said if there had been no Labour Opposition the Government would not have done the things that were included in the Budget. The debate was unfinished when the Telegraph Office closed at 2 a.m.