FINANCIAL DEBATE

Otago Daily Times, Issue 23330, 23 October 1937, Page 14

FINANCIAL DEBATE

DRAGGING TO A CLOSE FIFTY-SIX SPEAKERS TAKE PART TEDIOUS STAGE REACHED (From Our Parliamentary Reporter> WELLINGTON, Oct. 22. The debate on the Financial Statement dragged on towards its conclusion in the House of Representatives to-day. In all, 56 speakers had taken part in the debate when Mr E. J. Howard (Govt., Christchurch South) finished his speech at the adjournment of the House this afternoon, and as only Government members were heard to-day there was not even the little variety that can customarily be expected. The Minister of Finance (Mr Nash) will reply to the debate on Tuesday night. High taxation to provide funds for public expenditure was defended by Mr D. Barnes (Govt., Waitaki) during the debate to-day. Taxing to provide for increased social services, he said, was the best way of securing the necessary redistribution of the national income. Sweeping generalities and platitudinous statements had been put forward by the members of the Opposition right from the start of the debate. As he had listened to them he had recalled the statement that certain words constantly repeated to a man could produce a state of coma. Mr W. J. Broadfoot (Opposition, Waitomo): You are producing one new. New Purpose of Taxation Taxation by the Government had ceased to be just a means of raising money, Mr Barnes continued. It had become an instrument for social adjustment and reform. It was being used as such an instrument with marked success by the present Government, and there was definite evidence that the expenditure of most of the revenue from taxation was productive. Opposition members, he continued, had complained that taxation in New Zealand worked out at the rate of £22 7s 6d per head of population, but they had overlooked the fact that on the same basis there was an immediate return of £ll 16s per head in the form of social services per capita. The rate of taxation had been compared with similar rates in other countries, but such comparisons were not fair when the figures were expressed in terms of varying currencies. "Gospel of Pessimism" " I think we may call the Leader of the Opposition (Mr A. Hamilton) the arch-pessimist of New Zealand," said Mr J. G. Barclay (Govt., Marsden). Mr Barclay said that Mr Hamilton had been travelling around the country preaching a gospel of pessimism about what was going to happen in a few years' time, but everyone remembered that before the last election the opponents of Labour had been just as pessimistic about what would happen if Labour got into power. If taken seriously the philosophy of Mr Hamilton would indeed give the people of New Zealand "the blues."

Mr Barclay said that business generally was at present in a particularly good condition, except for a slight setback in the boot industry. Members of the Opposition, however, had to have some rabbit to chase. They had been chasing the Scrimgeour rabbit and the orange rabbit, and now they were chasing the boot rabbit. Other speakers were the Minister of Agriculture (Mr W. Lee Martin), Mr H. M. Christie (Govt., Waipawa), Mr C. H. Burnett (Govt., Tauranga) and Mr E. J. Howard (Govt., Christchurch South). The House rose at 5.25 p.m.