LABOUR FINANCE

Poverty Bay Herald, Volume LXIII, Issue 18087, 7 August 1936, Page 9

LABOUR FINANCE

CRITICISM OF BUDGET DEBATE OPENS IN HOUSE MICH TAXATION POLICY THREAT TO BRITAIN (Per Press Association.) WELLINGTON, last night. The Budget debate was opened in the House of Representatives to-night by the Rt. Hon. J. G. Coates, who said that ever, since the Government assumed office it had been administering doses of soothing syrup to the House to deaden the pain, but what had been done under the Government's Hood oi platitudes? The number of unemployed had been increased. Though it was true that sustenance payments had been increased and public works had been undertaken, private industry had been restricted ill quite a number of important ways. He believed the Government did not care whether industry was ruined or not. The produce of the dairy industry had been commandeered without thought to the rising costs. Expenditure was increasing by leaps and bounds, and lie believed that just round the corner there was inflation.

Now they had Labour’s first Budget, and the same old cry, “There is nothing to fear.” He forecast that in the next 12 months there would be a complete reaction, and he hoped it would not lie a- collapse. There was a taxation increase of £5.000.000 in one year. It meant a drain on the revenue funds and reserves to that amount. He knew that the Minister of Finance had had an enormous task, Mr. Coates said. The country could suffer if the Minister was completely overloaded, and the. indications were that he was. So much work in the public interest was held up for so long that he could come to only one conclusion, that the Minister was overworked, or else that he was paying too much attention to detail. What was wanted was a broad policy. He asked why the announcement of the guaranteed price had been delayed. Why had the directors of the Bank of New Zealand not been appointed earlier? The Public Service Commissioners had not been appointed. MACHINERY OR MEN ? The lion. P. Fraser : Why didn’t the last Government do it? Mr. Coates: 'the Minister must Lake his gruel. Mr. Coates went on to ask where the money was coming from, lie claimed that the last Government left the finances in an unassailable position, but was the present Government depleting the. reserves?

Referring to public works and expenditure on plant, Mr. Coates asked whether machinery should almost wholly displace inan-power. How far was h wise to use machinery? He thought there was still room for the old wheelbarrow. The use of machinery might be very expensive, and where did the Government intend to draw the line?

Mr. Coates asked if the paragraph regarding tlie rearrangement of internal economy was a threat, to the British people. Did it mean that if the Britishpeople did not give her what she wanted New Zealand would commence the manufacture of her own motor cars and other things? He told the Minister that the question of bilateral, agreements had been raised, and a reply had been, received that before those agreements could be made they must be discussed at the Imperial Conference. He said that New Zealand could not secure a bilateral agreement with Britain. After all, the volume of trade had to be considered, and New Zealand’s contribution was small in proportion to the total British imports, lie said New Zealand’s best policy was to stick as closely as possible to the policy that best suited 1 Britain. The Minister had made a fetish of a, bilateral agreement between New Zealand and Britain, but it could not, bo done. The Minister’s statement should be considered in the light of its effect on New Zealand’s credit overseas. BETTER THAN CASTOR. OIL

Reference was also made in the Budget to pensions and, as far as the Opposition was concerned, it was always ready and willing to provide recognition for il-rrc who had given the best years of their lives to the country. But :hat' had to be done on an economic basis. He doubted if that had been considered in the present cases. An old age pensioner was to receive a £s 6d increase, or 12t f*r cent, but his costs had risen more than that. He said that it was the experience of other countries that tlie granting ol a pension to a deserted wife gave rise to all sorts of complications. What about the returned soldier? All lie received was part of the return of the economic pension. The returned* soldier was receiving no consideration at all. The Rt. Hon.' M. .T. Savage said that soothing syrup was preferable to the castor oil theory of the, last five years. He was advised that in spite of all the disasters predicted, that industry was going ahead and could not fulfil orders. He thought Mr. Coates had cleared up all reserves long before his term of office ended. Why did not Mr. Coates till the Public Service Commissioner-ship? Ho thought the Government had made reasonable progress to get where they were to-day. lie was not thinking of smashing the financial system but of reforming it, so that man would be the master, not money. Hours had been reduced and wage cuts restored. It was a curious way to solve the depression by giving people less money to purchase things with. Houses would be built for the people by using the public credit and lie wanted to see (lie Opposition go u]i and down the country saving that t.lie Government should not do if and see bow they got on. CPI NO PUBLIC CREDIT He bad never met anyone who could tell him why they should not complete a railway if it were wanted or erect a building. They had pledged the public credit in either case. The Government was trying to alter the existing system, and if could not pay off the existing debt by adding to it each year. Mr. Coates had added some £24,000,000 in three years. He was not going to let the people down on the job lie bad promised to do. The people had helped him wonderfully well, and if lie could help them,, as they Imd helped him, he would be well satisfied. Regarding the use of machines, Mr. Savage said jliat if they wanted to be successful in a competitive race they could not use anything else. The thing *o solve unemployment -was to fit the

people into the industries of the Dominion and the only way to fit them in was to reduce the hours of work. Why should a man work -GO hours while another man looked on? He had a vision of the future and thought he could see a future when the farmers would not be depending on fluctuating prices abroad, lie said, if lie bad his way, the time would soon come when the people would he enjoying the advantage of their own production. The mortgagee would not be overlooked, and it was a. question ot doing justice to both sides. The Government wanted to stabilise the equity of both the mortgagee and the mortgagor and give belli a fair deal. Regarding the guaranteed price, (lie Government was going to give the farmer everything it got out of it. The thing was being handled in a businesslike way. The Governirfent bad not yet come to the end of the way. Tt had not yet done anything like it would have liked to have done, lint it would do the job yet, if the people stood by them. The debate was adjourned