BUDGET DEBATE

Otago Daily Times, Issue 23333, 27 October 1937, Page 10

BUDGET DEBATE

THE CONCLUDING PHASE REPLY BY MINISTER OBJECTIVE OF SOCIALISM REDISTRIBUTION OF INCOME (From Our Parliamentary Reporter > WELLINGTON, Oct. 26. Points raised by members of the Opposition during the Budget debate •were replied to by the Minister of Finance (Mr W. Nash) during his reply to the debate in the House of Representatives to-night. " Mr Coates has referred to this as a propaganda Budget," Mr Nash s;aid. "Of course it is—what has been done and what it is proposed to do I sincerely hope that we shall continue to put out the kind of propaganda that is contained in this Budget." Members of the Opposition had stated" that 14 out of 15 pensions now payable had been introduced by previous Governments, Mr Nash continued Would they agree that a pension payable to a person who had been resident in New Zealand for only 20 years was a new pension, because previously persons in that position had not received a pension? The invalidity pension was certainly a new one, as was the pension paid to deserted wives whose husbands could not be found. There was also something new about the increases that had been made in pensions. Mr Coates had agreed that pensions should be increased in prosperous times, but he had not increased them during the boom years between 1925 and 1928, when he was Prime Minister. Taxable Capacity "Mr Holyoake said that we had nearly reached the taxable capacity of the people," the Minister continued. "How would he define the taxable capacity?" Mr Holyoake: I said it could hot be defined. Mr Nash: Well, how can you say we have nearly reached it? "Our taxable capacity may be considered to be about £22," the Minister added, "and we are using fche money'obtained from taxation in a way that will probably stimulate prosperity more than if we did not take it. If some people have more than they need to build up a certain standard of life it is good for some of that to be taken away in taxation and passed on to people who can use it. "Mr Smith said the Government wished to build up chain stores and squeeze out the small shops," Mr Nash proceeded. "Our objective is to give the best standard of living possible in this country to everyone who renders useful service. We wish to take the resources and materials of this country, transform them into useful commodities, and let everyone who renders useful service have his legitimate share. If through sickness or invalidity per-* sons cannot render their service they will still get their share. That is Socialism, which, when properly defined, is one of the finest objectives that can be pursued." Rates Of Interest There appeared to be some difference of opinion on the Opposition benches with regard to interest rates, the Minister said. Mr Roy had complained that the Government had done nothing to reduce interest rates, but under the Mortgagors and Lessees Rehabilitation Act about £ 147,000 had been written off by way of interest. He suggested that Mr Roy should argue the point with Mr Dickie, who did not think it was fair that the Adjustment Commissions should have reduced the rate to 4J per cent. Mr Dickie: I don't mind the interest rates being as low as the State rates, but I do not think they should be any lower. Mr Nash: You want them on an equality with the State rates, but you do not want them reduced.

Mr Dickie: You cannot get away with that. The State \r not lending at H per cent.

" The State Advances Corporation," the Minister replied, " is lending at 4J per cent., plus a contribution to a reserve fund, makin° the rate slightly lower than 4| ner cent." Mr D ?kie: But that reserve fund is never returned.

The Minister's reply occupied just under two hours. The House rose at 9.25 p.m.