STATE FINANCES

Poverty Bay Herald, Volume LXIII, Issue 19099, 21 August 1936, Page 10

STATE FINANCES

IMPREST SUPPLY DEBATE MANY TOPICS COVERED CRITICISM AND REPLY WORKERS’ TAX BURDEN (TVr Press Association.) WELLINGTON, last night. Urgency was accorded the passing of the .'lmprest Supply Bill in the House of Representatives to-day. On the motion that the House resolve itself into Committee of Supply, Mr, AY. J. Poison (Nat. Stratford) said that the Government’s taxation proposals wore very drastic, and were aimed, to socialise the means of production operating in this country. The Government had said it. would reduce taxation, but it was increasing it. Air. Poison said that the promise the Prime Minister made should have been fullillod. The Prime Minister had also promised to reduce exchange, but he knew it could not be done. Then regarding the guaranteed price, the daily farmer had been, promised a bonus or subsidy on the past season’s production. There was a feeling that there had been a. good deal of misrepresentation regarding the Government's policy. The country fell: that it; had been deceived in its expectations. The count ry would suffer from the excessive muddle of thinking, and I lie dairy farmer .would be t he lirst to suffer. FARMERS’ BEST FRIEND. Mr. P. AY. Schramm (Lab. Auek. E.) said that with the policy of the Govenimonl regarding the guaranteed price, the farmer was in a better position t.lmn he had ever been before. He outlined the steps the Government had taken to rehabilitate the country and said that Air. Poison’s policy was to reduce wages, salaries, and pensions, which took away the purchasing power of the people, which enabled them to 'purchase the produce of the farmer. The Government, was doing all in its power to rehabilitate the country. The last Government did its best to put it: into a morass, and tin* farmers would find that they had a sympathetic Government in power. Mr. ft. G. Smith (Nat. New Plymouth) said it; was an extraordinary statement that Air. fteliramm had made that the present Government was the best friend the fanner ever had. YYhat was the position 1 ’ Many farmers wore unable to procure labour on their farms, and they had to dismiss labour. They had to pay the high cost of taxation. The so-called guaranteed price was not a guaranteed price, but was a fixed price for one year. Again, if there was any surplus in the dairy fund account, the Government did not say the farmer would get it, but that the industry would get it.

He also said that the Government had not kept, its promises to abolish iho sales lax and reduce exchange to par. He said that the Government had not yet carried out its election promises. Employees were being dismissed because industry could not carry the burden imposed on it. There was a system of boycott growing np in the country. Some employers had been warned that if anybody were dismissed as the result of the Government legislation, a -boycott would be imposed, and they would be black listed. FRIEND OF AEG PEG PEG. Mr. I). AAA Coleman (Lab:, Gisborne) said that tile Government bad never said that the sales tax would ho immediately abolished, or that exchange would be reduced. The Opposition had raised the exchange, and it was much easier to put laws on the Statute Hook than to remove them. If exchange were brought bade to normal immediately, it would mean ruin to thousands of businessmen. Perhaps the Opposition would like to see that done, because it would bring the Government into disrepute. The Government had said these things would lie attended to, and they would be attended to at a suitable time. The Government was proving itself the friend of all the people, not only of one section. The majority of every section of the community were satisfied with what the Government was doing. The Rt. Hon. G. AM. Forbes said that judging from the brave remarks of Mr. Coleman no one would think the Labour Party was in power on a minority vote. - Mr. Coleman: That is cheap, coming from you. Mr. ,T. Thorn (Lab., Thames): AMe got 200,000 more votes than you. Mr. Forbes said the vising cost of living was absorbing the increases in wages and pensions, and il bad yet to lie seen whether tlie people would be better off or not. Mr. H. G. Dickie (Nat., Patea) urged that greater lmste should be made with the Government’s housing scheme. He also contended that more latitude should he allowed regarding housing loans. “DEVASTATING TAXATION.”

Mr. 11. Burnett (Lab., Tuuranga) said tho public works vote, particularly regarding the money to lie spent on roads, would Ire very helpful in giving employment to a large number of men. lie thought that, returned soldier settlors should not be brought under the State Advances Corporation, but as they were entirely satisfied with tlie present position they should be left whore they wore. Mr. W A. Ilodkin (Nat., C. Otago) said the Government had introduced the most, devastating taxation that had ever operated in New Zealand, and in the last; issue it was Ihe working man who had to bear the greatest burden of taxation. The present Government, had launched a great attack on (lie purchasing- power of Mr. ilodkin said the Government was giving with the one band and taking away with the other. The effect, of the •111-hour week on price commodities had not. yet boon fell, and by Christinas, JIK’7, measured in terms of commodities, the lot of the unemployed would bo worse Ilian i! IT WAS A SIMPLE INVENTION! Gut it brought, a. fortune lo tho inventor —after a friend told him to get tlio idea patented. Patent your idea. Consult us now—fully and confidentially.—Henry Hughes Ltd. (directors W. B. Hughes and J. T. Hunter, Registered Patent Attorneys), 214-217 D.l'.C. Building, Wellington. Local Agents: Ball and Crawshaw. Peel Street.*

was during the depression. Mr. C. At. Williams (Lab.. Kaiapoi) asked where the increased cost of living was. Certainly there bad been increases of a penny here and there, but they were due to circumstances over which Parliament had no control. No one objected to butter selling at. Is 2d instead of the 8d or Oil it was selling at last year, lie said as a farmer himself that the present Government was the greatest friend the farmer ever hud. The fact that they had a guaranteed income would enable them to budget for their requirements with the certainty, of being able to meet their reasonable commitments lie suggested,,!hat when? men wore working small uneconomic farms that co-operative farming should he tried to enable the farmers to get out of their difficulties' in that FARMERS WELL SATISFIED Tbe lion. J. O. Cobbc (Xat., Oroua) referred to the increase in the price of butter on the London market and predicted that. Government members who represented dairying electorates would have a warm tiine when they tried to explain that the guaranteed price was better than the higher price ruling m London. The Government's taxation proposals too. hit the farmer on all sidesThe Hon. il. T. Armstrong said Mr. Cobbc seemed to be concerned that the fanner had lost control of Ins products, hut the farmer wanted to control it only till lie sold it. Now he was going to dispose of it to the State at a reasonable paying price iuslejul of noli knowing ioi a considerable lime what lie was going to receive for if. In some eases, the farmer iicvci* owned liis produce; it> belonged t„ the mortgagee, hut. the Government was going to adjust mortgages. The farmer was not going to be allowed to icmain in an impossible position. Ho wished that, all other farmers ami all ot her people were in i he same favourable position as tlm dairy farmer. There was not. a. dairy farmer*in the country who would turn down-1 he guaranteed price if the opportunity were given him. Mr. Armstrong claimed that the most prosperous period in the, history, of the country was when prices were highest and wages were highest- and the Government was increasing the purchasing power of the people who hail to purchase and consume goods. The last few Years, when production- was highest, was the worst period in the history of the Dominion. Surely that was due to the mismanagement of t he Government of the country and no other cause. ‘fewer unemployed He did not blame Iho dairy farmer for asking tor more, but tbe Government was giving eifect to its promises in. doing what, it had done for the dairy farmer. The reason why better prices were being realised for New Zealand produce in .London was that the people at Home were earning, more money and, consequently, bad greater purchasing power. He'c laimed that unemployment had been substantially reduced since the present. Government came mio power. There were fewer registered unemployed to-day than there had been for the past live years. It was true there were more on sustenance, but there were no soup kitchens or clothes drives. Air. Armstrong said one reason for the increase in the number on sustenance was that he had abolished the poverty that existed in recent- years. .Mon- people were registered because the present Government had allowed certain ones to register who had been debarred from relief by the previous Government. It was a gross misrepresentation to say that unemployment was increasing in New Zealand. The last Government had not given the unemployment, figures in a way that reflected the true position. The number not eligible or not placed on reHief in duly was 3189 and in August--2804. Those receiving rationed relief work under the No. 5 scheme, were: July 15.280. August 15,945. The number on sustenance, and that was the number that was increasing, and that he hoped would increase still further was: July 24.470. August 26.205. The number on part time relief in August last year was 45.045 and on full time 17,410 or a total of 62,455. In August this year, the total was 54.003 or 8459 fewer than in August last year. Mr. Armstrong added that- although the total was BCOO lower the remainder were receiving. £1,000,000 more than they got last year.

Air. J. Hargesfc (Nat., Awarua) said the Government’s legislation would make worse instead of improve the position of Hie wife and family of a dairy farmer. The women ami children, would be driven back into the cow byre, instead of being kept- out of it. Dr. D. G. McMillan dealt- principally with the health of the population and drew attention to the shortcomings of the medical service which, he said, was at the crossroads, but had not found a signpost. He referred to the maternal and infant mortality, and said that much of this could lie overcome by a proper medical service.

Mr. S. Cl. Holland (Nat., Click X.) claimed that high wages and high prices had had no effect on the unemployment figures. Tho Minister for Employment was advocating high prices, while the Minister for Industries and Commerce was trying to keep them down. Mr. J. Cl. Barclay (Lab., Marsden) said that not so much opposition would be taken to the Government’s policy if rents and interest were allowed to riseThe Hon. AV. Xasli said that the graduated land tax was first instituted in 1879, but became a flat rate in 1929. If it was right in 1929, it was probably still rigid in. 1936. Some heated exchanges occurred between Mr. Nash and Mr. Poison regarding some comments Mr. Poison had roceived from America concerning a pamphlet issued by Mr. Nash on guaranteed prices. Ah-. Poison claimed that the comments refuted Mr. Nash’s statement and -Mr. Nash claimed that they did not. After several points of order had been raised, Air. Speaker ruled out of order any reference lo the comments on the ■pamphlet. Tho bill providing for supply for £4,763,000 for one month was then passed;