PEOPLE’S WELFARE

Otago Daily Times, Issue 23558, 22 July 1938, Page 10

PEOPLE’S WELFARE

CONCERN OF GOVERNMENT MR SAVAGE DEFENDS BUDGE! “ ONE OF BEST EVER SUBMITTED " (From Our Parliamentary Reporter) WELLINGTON, July 21 “ I wish to congratulate the Minister on the presentation of a good business Budget,” said the Prime Minister (Mr M. J, Savage) when speaking in the finanical debate in the House of Representatives tonight. “My colleague has again given this House and the country a clear and convincing account of his stewardship and I think the country is to be congratulated on having a Minister of Finance who has the grasp of financial affairs that Mr Nash has.”

Mr W. J. Poison (Opposition, Stratford): He certainly has a grasp of the people’s pockets. “ This is one of the best Budgets ever submitted to a New Zealand Parliament,” the Prime Minister said, “ because it is the best for the things that mean so much in the everyday life of the community Apart from the surplus of £BIO,OOO, the Financial Statement shows a high level of prosperity because more people than ever before have shared in the better times. “ Good cheer is the best form of good government,” Mr Savage said. “ There was bound to be a great deal of talk about the increase in taxation revenue, but he could not see why there should be any outcry, for those who protested the loudest were among the very people who had done the best out of the greater turnover of cash. The gain in the tax yield was due to the increased prosperity and the people were much better able to pay the taxes they had to pay to-day than the taxes that were levied when the present Government took office. Critics of the Government were emphasising that the taxation was now £23 per head of population, but the people did not need to worry about the taxation per head. What counted was the taxation per pocket. The important factor was not any increase in the rates which had been small over the whole period, but the increase in the total income which had been very considerable

The National Income “ It is said that the increase in the national income is due to the increased prices overseas,” the Prime Minister continued. “Admittedly the prices overseas have risen, but. had it not been for the Labour Government’s policy of redistributing the national income the aggregate private incomp to-day would be very much less. It would have gone into the pockets of the few. as in the past.” The Minister of Internal Affairs (Mr W. E. Parry): The mortgagees. “ The Public Debt charges have increased under Labour on the average by £ 66,000 a year,” Mr Savage added. “That works out at lOd a head, but look at the work that has been done. How can we expand the nation’s business without spending money? Business people in all lines have to do the same thing.” Mr Poison: One is investment; the other is squander. “Just like a manufacturer who is more than compensated for extra expenditure by the increased trade that results from the expansion of his business,” Mr Savage said, “ this country is better off and sp are the people. I can understand the. Social Credit man’s point of view He says we should not raise the taxation, but use the public credit." Mr W. J. Broadfoot (Opposition, Waitomo): Then why pull their legs about it? “ I cannot understand the man who says we should neither raise the taxation nor use the public credit,” Mr Savage added. Mr Poison: Did you not say that before the last election?

Mr Savage: No; I said we have never used the public credit as much as we should have. There is the famous phrase again for vour benefit. Income and Taxation The Prime Minister said that since March, 1936, the increase in taxation had amounted to about £11,250,000, but in the same time it was estimated that the income in the aggregate had gone up by not less than £45,000,000. The people, therefore, still had nearly £34,000,000 left. Reminding members that the money received in taxation was spent in the interests of the people. Mr Savage said that the debt services absorbed £9,500,000, a legacy from previous Governments, except for the amount contracted by the present Government in renewing loans that had .come due. The National Party could not reduce taxation by cutting that item Social services required £ 12,700,000 including education, health, pensions, etc., and more than £ 12,500,000 of that was handed straight back to the people. Highways absorbed £3,200,000 and defence £2.000,000 and £8,000,000 was spent on essen tial repairs, law and order, and ad ministration. The Labour Govern ment could prove the careful and economical expenditure under those headings. When the unemployment figures were taken into account il would be seen that the money handed straight back to the people was more than half the total taxation. “A Glorious Record ” “ The two main items of increased expenditure in the last two Budgets are social services and defence, and I have no apology to make for either,” Mr Savage said. In the field of social service we have a glorious record. Education has been increased by nearly £ 1,000,000, pensions have been doubled to nearly £7,000,000, and the expenditure on health and mental hospitals has been increased by over £500,000 We have put free milk in the schools with more than half the children covered, we have more teachers in training, we have instituted health and education work among the Maoris and we have established a housing scheme. The people’s welfare is the highest law as far as this Government is concerned We know no other.” Dealing with defence the Prime Minister said that New Zealand nad to play its part in the defence of the British Commonwealth as well as undertaking a much larger measure of its own defence than in the past The reorganisation and extension of the naval service would be continued On the military -ode the coastal defences were being strengthened, mechanisation of the army on modern lines was proceeding and the Territorial Force was being extended and improved.

Mr Poison: A reluctant concession to the public demand. Mr Savage; That is a generous remark “The estimates for the Army, Navy and Air Force account for £2,000,000,” Mr Savage said, “but in addition £1.000,000 is being provided for landing fields, hangars and equipment. Who can say we are not doing our ]ob? Taking this year’s total from all sources, we have trebled the expenditure on defence since we took office.”