CONCLUDING STAGES

Poverty Bay Herald, Volume LX, Issue 18252, 22 November 1933, Page 4

CONCLUDING STAGES

debate on the budget CRITICISM BY MEMBERS MINISTER IN REPLY (Per Press Association.) WELLINGTON, last night. Urgency was accorded the Budget debate in the House of Representatives, the Rt. Hon. G. NV. Forbes stating that it was desired to conclude it at this sitting. Continuing the debate, Mr. J. Haijrest (Coal. Invercargill) referred to the establishment of the exchange pool, and expressed the opinion that if exchange had been allowed to run free, then it would have been put up to 150 per cent. .Instead of being pegged up, it had been pegged down, lie admitted that he would have to answer to his electors for the part he had played in raising the exchange, and he was prepared to do that, lie had an absolutely clear conscience. Some action had been vitally necessary, and lie believed that benefits had'already been received from the course which had been adopted. He regretted that the Horn W. Downie Stewart had seen lit to criticise tho raising of tho exchange rate, and ho believed the cx-Minister’s criticism was unsound. Mr. E. T. Tirikatcno (Hid. S. Maori) asked how much had been allocated for .the relief of unemployed Maoris, in the southern districts. He complained that they were . not being treated as well as the natives in the north. He also complained that as the result of drainage work on pakcliu lands in the South Island, water was being diverted into drains on native land, and, in consequence, the latter was being flooded. He asked that Maori unemployed be eligible for cmploy men t in connection 'with this drainage work, so that they could prevent damage to their own land Mr. Tirikatene added that Maori land was also suffering through there being no proper prevention of river erosion. VALUE OF AIR DEFENCE.

Mr. J. Linklator (Coal. Manawatu) said the Budget was the most cheerful that had been presented for some time. Labor members in previous years had complained of pessimism on the part of the Government. It now seemed that the mantle of pessimism had fallen on the Labor Party. Ho declared that there was a feeling of confidence throughout the Dominion. He was pleased to note that provision was being made for the acquisition. by the Government of l- r > new aeroplanes, because the present machines were mostly out of date. He believed in the interests of the country, that the Government should strengthen its first lino of defence. He had no doubt that in the future air defence would be New Zealand’s chief means of protection. Mr. E. J. Howard (Lab. Click S.) said he was not satisfied with the Borstal system, although he believed that there had been some improvement. Ho was sure that magistrates when they committed boys to the Borstal institution, did not realise that they were sending them to a place where criminals were manufactured rather than cured. DERATING ADVOCATED Mr. W. ,1. Poison (Coal., Stratford) criticised the attitude taken up by the Minister of Lands and the offieeis of his department towards tenants who, owing to adverse economic conditions, were unable to meet their commitments. He said lie could not understand why tlie Government put inexperienced men on the laud at the expense of tlm State, while experienced men were being evicted. It, was his experience that 95 per cent, of the Crown tenants were playing the game. If it had been reasonable, in 1921-22 to set up a Deteriorated Land Commission to readjust values it was more than reasonable to set up a similar commission to-day. Mr. Poison also suggested that the burden of maintaining the roads of the Dominion should be taken off the should ers of the farmers, and placed on the shoulders of the users of roads. He was of opinion that it was possible to carry out the derating of farm lands. He did not contend that it was possible to do so at a stroke of the pen, but farmers were entitled to a very substantial measure of derating. In concluding, Mr. Poison placed be fore the House the plan which he bad previously advocated for dealing with the unemployment problem. EXPENDITURE’ ON DEFENCE Mrs. K. It. McCombs (Labor, Lyttelton) complained that the Coalition Government had made a determined attack on the education system, and said that since 1929 there had been a reduction.m the annual education vote of £1,351,000 The bulk of this reduction had fallen upon the primary school system, which had been attacked at both ends. At tho same time, the Government was increasing expenditure on defence. Mrs. McCombs drew attention to the cost of the Great War in lives and money, and alleged that while other nations wero trying to reduce armaments, New Zea-' land was proposing to increase'her defence expenditure. The speaker considered that if the New Zealand Government could do'nothing to assist in promoting goodwill among the Pacific .peoples, it could at least refrain from nullifying the good work of the, delegates at the recent conference in Canada on Pacific Relations. She asserted that the money that-the Government proposed to spend on defence was being taken from the social services of the .country. There Was not in tho whole Budget a single suggestion that tho Government proposed to take any stops to alleviate the prevailing distress. Instead, unemployment alloe.M tion had been reduced, and the people subjected to greater hardship and de ; privation. k MINISTER ON EXCHANGE

Mr. .A. Stuart. (Coal., Kuugitikci) sai.il that Mr. Poison’s reference to tile treatment of Crown tenants had been un justified, and he declared that lie knew for a fact, that they were getting every consideration. Jt avius quite e;ssy to pick out individual cases of hardship, but he thought a matter of that kind should be viewed in a general way. Air. Stuart said he did not agree with Mr. Poison that total derating should be carried out, HOW’S THE COLD GOING?? Not going at all—still hanging on. That's the way with spring and summer coughs. They are always so hard to dislodge. What you need is Baxter s Lung Preserver. “Baxter's” quickly breaks up a, cold, clears away that thick throat and restores a healthy condition to the all’ passages. “Baxters” great tonic properties accelerate re-' oovery. Get. a bottle to-day from any chemist or store. Tlu’ee sizes, 4/fi, 2/6 and l/6.*

but lie considered that there were a number of people in the backblocks who had to pay special rates, and who should be given some assistance. He considered that there was a marked general improvement in the Dominion’s position economically. Replying to the debate, the El. Hon. J. G. Coates said that from some quarters it had been contended that the Budget was too pessimistic, while from others it had been contended that the document was too optimistic. He thought, therefore, that he was justified in saying as Minister of Finance and as a representative of the Government, that he had struck a line that was correct and represented the facts of the position. There had been a great deal of criticism on the question of the exchange rate and it had been declared that provision should have been made in the Budget for the loss of £25 on each £IOO of surplus sterling assets held in London. Such a contention pre supposed that these assets would be sold at par, whereas the Budget had definitely stated that the exchange rate would not be reduced this export season. SUPERAN NUATION FUNDS Touching on the question of superannuation funds, the Minister said that a very important conference of ajl tlm interested parties would he held on Jhurschiy. He thought that it was fairest that the position should be dealt with in this way. because those directly concerned would have ample opportunity of expressing their views. Mr. P. Fraser (Labor, Wellington L): Do you anticipate reaching a complete agreement on Thursday? Mr. Ooates: I would not go so far as to say that. Reiving to the speech by the Hon. yy Dowuie Stewart, Mr. Coates said that the latter had made his own position clear hist January, and might reasonably have been expected to have allowed the Government an opportunity to carry its policy to completion. But, instead of that, he had merely repeated his protests'. The Minister said that he. did not see why it should be insisted that there should be a balanced Budget in the. same year as the currency depreciation hatl been put into effect, because such an attainment was impossible. Tie did agree, however, that it was essential to make for a balanced Budget in the near future. Mr. F. Langstone (Lab.. Waimanno): It will take four years. Mr. Coates: Oh, no! We have had just 10 months of depreciated currency to the extent of 25 per cent. RESERVES OR TAXATION? The Minister declared that the statement that hostility on tho part of the British farmer had been aroused by the high exchange rate was quite incorrect, and he did not seo how Mr. Stewart could justify such an assertion. Mr. Coates "asserted that the trading position had had nothing to do with the proposals for the quotas, which were solelv the outcome of the British, farmers anxiety to obtain satisfactory prices toi their own produce. Replying to criticism of his action in drawing on the discharged soldieis settlement securities to the extent cf £2,000,000, tho Minister said that it amounted to a question of whether the Government Should, draw on the reserves or impose taxation to that extent. He was definitely of the opinion that the former was correct. It was a perfectly legitimate transaction. It had also been stated that provision should have been made for payment of interest on the amount affected bv the Hoover moratorium. The Minister pointed out that the British Government had stated that this amount would not be called on in tho meantime. It had clearly indicated that it would not be called on this year and there was no reason why provision should have been made j'oi- it in this year's Budget. Ibis amount might become a liability later, hut the whole question was bound up in the larger question of all war debts. It was not due yet, and was not chargeable till it was" due. The House rose at 12.10 a.m. on the conclusion, of the debate.