THE BUDGET.

Poverty Bay Herald, Volume L, Issue 16498, 2 August 1924, Page 8

THE BUDGET.

DEBATE IN PARLIAMENT

MANY TOPICS DEALT WITH

(Per Press Association.) WELLINGTON, last night. Tlie debate on the Budget- was resumed in the House of Representatives. Mr. R. McKeen said tlie Minister oi Customs bad completely demolished the arguments of the leader of the Opposition in his criticism of the Budget, but he (Mr. McKeen) had a proposition which lie wished to submit to tlie Minister, and to which he wished him to reply. He then proceeded to argue that an examination of the public accounts disclosed that the Government's surplus was in reality much larger than the Budget disclosed. Instead of a million and a- half, tlie surplus should have been shown as £2,352,COO. The reason it was not- so shown was perfectly obvious. At- the time the* surplus was announced the whole of the public service was seething with discontent. They desired to have the “cuts' restored, and the Government- was afraid if they disclosed a surplus of over two millions agitation for the restoration o! the “cuts” would become so clamant- that it could not he rejeseted. Arguing that housing was nothing hut a national question, tig: Government ought to face the problem by raising the basic wage so at to enable workers to jnircha.se homes of their own. Dealing with the question of land transfers, he said that- during the past five years there were 188,000 land transfers in the Dominion, involving a capital sum of £235,000,000. Land agents’ fees at 2£ per cent, amounted to £5,871,000; the solicitors took £3,522,000; stamp duty, which was necessary, cost £2,348,000,' or a- total of £11,742,000, which was 5 per cent, on the capital value. This meant that many pounds were added to the cost of the land. In plain English, it was purely and simply plundering.

Mr. K. S. Williams first referred tc the question of death duties. lie said that £1,455,605 had been collected from this source. He did not consider that the manner in which the Government treated the money collected as death duties was financially sound. It waS all capital, and if it was necessary that such money should be taken out of capital, it would he sounder finance to apply it- towards the reduction of the National Debt. It was a moot point whether it was wise to take so much money out of estates ii a yo,ung country. Many of these estate; had been built up from practically noth log bv jieople in industries, and then was a danger of the Dominion losing these industries. It was sounder iinanci to work on the income tax, rather than to take so much out of the death duties. Continuing, Mr. Williams advocated the development of aeroplanes as a means oJ assisting the Dominion's defence, and of the necessity in this connection of finding out exactly what the oil resources of the Dominion really were, lie was well, aware there was need for houses in the towns, hut he asked the Government- not to forget the need for houses for school teachers and nurses ii the baekbloeks. lie complimented (lie Government oil what they were doing in th© matter of forestry and in tin direction of advancing native interests In conclusion, lie reminded the Label party they 'were not the only party hthe House which had the virtue of con si deration, frjn the intev-'ests of /heir fellow men and they should not assumi anv virtue which.- they*did not have.

Mr. It. Masters said the Minister of Customs was most unfair in his speech last night, when lie compared the position of Australia and New Zealand. When demoting the position of Australia lie chose the year 1922, wtiicli was well known to bo a year of drought and slump in the Commonwealth, hut when he came to New Zealand lie quoted the results of 1923, which was p prosperous .year in this country. He did not mention that in 1922 even New Zealand had a deficit- ol £350,000, and so he dodged and evaded the point raised by the leader of the Opposition in his criticism of the Budget. Tlie speaker then proceeded to deal with tlie soldier settlements, contending that many estates had been bought which had never been taken up by the soldiers and never would, resulting in inevitable loss of many thousands o the Dominion. Who had got the money paid for this land? Not the soldiers, but the friends of the Government, who were now living retired in some of our prosperous suburbs. He found nothing in the Budget to comfort him. There was no reference to any reduction in taxation ; no reference to any reduction in customs duties, There was, in fact, no policy of any kind in the document. because the Government- had no policy. What, the Government, evidently relied on were the reports of the commissions. They had commissions on all kinds of subjects, and vve were promised more. It had 1 been said that the Government was made up of the Premier, occasionally aided by the commissions. So we had descended to the position that we had to look to the brains outside tlx House for our political inspiration. The member for Tauranga had said that Government by commission was better than no Government at all, and while tlie jrre sent Government was in office that was exactly what we were reduced to—Commissioners and no Government, at all. Il had been claimed by the Reformers that the surplus was due to the economies on the part of the Government. This was not so. Departmental expenditure had not increased by £1,500,000. as stated in (lie Budget, but the. annual appropriations had actually increased by £407,000 Therq had, however, been economies ex' perienced in some departments which had been most most ill-judged. One of tin least justified of these was the raluctioi in the Agricultural Department. This should be the strongest department in New Zeahipd, but it lacked enterprise, it lacked spirit; it lacked vim and life, because it was starved. Competition, and severe competition, was coming from the Argentina, and if wo were to retail our position on the London market th< Agricultural Department must lie kepi right up to date. We required screnct laboratories and agricultural education. He urged the -Minister to fight for his department, to keep it right abreast of all times. So little was done in a forward direction, lie sometimes doubled whether the Minister was really in sympathy with his department. The speaker concluded with the plea- for a bettor sys-

tpm of collecting hospital fees. The prosen! system resulted in unbusinesslike Boards getting increased subsidies, while Boards which collected fees had their subsidies reduced. The remedy was a fiat rate of subsidy all over the Dominion, irrespective of where the hospital might he.

The Hon. McLeod defended the nurehase of the Reparoa estate ,I'or soldier settlement (which had been criticised by Mr. Masters.) Hu believed that eventually the loss on this estate would he very small. He protested against the suggestions that the Reform party in making purchases of the land were actuated more hv the desire to assist the party’s friends than hv concern for the soldiers’ welfare. Such a suggestion was dcsplieable. If lie had been in dined to search for dubious purchases, ho might refer to the- purchase of land made in the Hutt Valley by the Libera: Government some years ago, which cost the country £120.(300, hut anyone \va, liable to make mistakes and lie would not descend to imputing doubtful motives when mistakes occurred. The Government had endeavored lo assist- the jr rim - ary industries. Complaint was made by Mr. Sidey that the debt was not- reduced because the interest bill showed no reduction. hut the Minister pointed out that this, deduction was not correct, as in . recent years money had been much dearer and loans cost more-, so that, even with the total debt reduced, the ini crest- bill was on the old level. Be fore the country could got hack to a stable financial position, i| must face tlie question of dealing with unpaid balances “that did not exist.” In the ease of farmers who sold their properties when values were high and went lo live in towns, only to find later that their lands were practically thrown hack on their hands, a charge had been made that there had been discrimination in making advances for farm purchase purposes, tlie inference being that party affiliations were considered. Tlie Minister denied any discriminations were made. Touching on the meat export control, Mr. McLeod said the last two years had shown a more even and high range than any similar period in the history of the meat industry, and this was the result of the Meat Board’s work. Touching on the special privileges to soldiers in the matter of land settlementlie considered that- the time had arrived when a con,' timuince of such privileges should be dealt with. There were thousands of young nun who had grown up since the war. and they were at a disadvantage in getting land, bbcuuse the soldiers must be given first consideration. Referring to the overseas settlement scheme, the Minister said it was unwise to spend several millions in putting on land men who were quite unsuitable for farm life. It was better to give the freehold to- men, ablu to make the best use of land than to lease it to men unfitted to make a success of life as settlers. Mr. Bertram criticised (lie work am. administration of the Health Dcjiart meiii, on which the expenditure, actually showed a reduction. He complained at the delay in publishing the findings of tin Kelvin Hospital (lommission, one of tin frost important in tlie recent history of the Dominion. Htv contended that the Commission had been very generous in its findings so far as the' hospital and staff were concerned, and lie condemned severely the Health Department's lethargy in connection with the matter. Apparently the Dc|)artniciit could not be stimulated to action until a number of lives had been lost. The Labor party, tor years, had stressed the undue mortality among-mothers in New Zealand in recent years. Mr. Bartram condemned the Department- for culpably licensing a- hospital which was inadequately equipped for its purpose. A damning feature of the incident was tiie Minister’s admission that the Health Department was starved as a part of the Government’f economy policy. The moral to. he noted was that private maternity hospitals must go and that- medical and hospital services must be socialised. Mr. Bartram quoted figures covering maternity mortality in England. According to Dr. Charles Porter, one- mother died for every 250 children born, and'he had considered this a very bad state of affairs. In New Zealand the figures* in the last quarter of a- century had grown from I to 282, to 1 fo 185. In Denmark, under a State controlled system, the- proportion was 1 to 495'.

Mr. Harris controverted the sugges t-ion that the Health authorities were apathetic regading the deaths of inothen's, and declared that- Mr. Bartram's criticism was unfair. Regarding housing. New Zealand had done more than any other country to provide homes for the people, though, personally, -be, believed the Department had undertaken too great a- task, which bristled with difficulties. Mr. Harris discussed the question of Imncrinl preference, declaring that, while Britain s trade was increasing, it unfortunately was not increasing with the Dominions. Ho also thought tluifc while preference would benefit the Dominions it would -not- niararially assist Britain. The High Commissioner’s office in Lon don was admirably managed at a moder ate cost, hut morn New Zealanders should he employed on the staff. The debate was adjourned on the motion of Mr. Lye, and the House rose till 2.30 on Tuesday.