BUSINESS OF PARLIAMENT

Stratford Evening Post, Issue 84, 14 August 1929, Page 6

BUSINESS OF PARLIAMENT

I WELLINGTON, Last Night. Tlio Hon. E. A. Ransom continued his interrupted speech on the Bridget in the House of Representatives today. He said it was not desirable that large sums should continuo to be expended on relief works. The Government was making every possible endeavour to place men on more l productive vwoirlcsi tjhan, they had been engaged on during the past twelve months!. A special committee bad been set Up to inquire into not only the effects of unemployment, but also the causes, if any. - One of the, first acts of the present administration had bee nto rafee the standard of wages of pay to relief workers, and the opinion bad been expressed that many Would throw up positions in order to take on relief work. The Government baTl got over that difficulty by employing men on the co-operative system. The result was .that work bciinr done at the present time was costing the country less than 'it did under the lower rates of pay. Mr. G. T). Sullivan, agreed with the .Prime Minister that there was little opportunity for reducing expenditure. In fact, while not advocating ai policy of extravagance, ho thought it would be only fair to increase expenditure in some directions; he instanced the salares i'n the police force. PREMIER JUSTIFIED. The Prime Minister was justified i'n seeking additional 'revenue, but Mr. Sullivan said he did not agree ijyith some of the methods employed. He thought it was wrong to increase the primage duty. Had there never been a primage duty it might never 3)ad happened that this mea,ns would be employed to raise revenue on this occasion. Now that it had once been increased there' was a precedent for j a i further increase. ! Mr. Sullivan expresed his support | for the proposals i for additional taxI ation on land. It had been istated that a number of large landowners would be unajblo to carry on under the new- conditions. This criticism was surprising i'n ,view of , the Government's exprcssod intention /that this tax should assist in breaking up some of the largest estates so that other people should have an opponmity of making a living on the land. Mr. A. Hamilton stated much had been satidj about the Government's ;having p(fovi!ded ohelap mojnjey forj settlers, and he asked where was it? ■Mr Hamilton described the Budget as ungenerous in places and "boastful in others. It was ungenerous of Sir Joseph Ward to ascribe the deficit to the Budget of his predecessor in office. It had heen ;, stated the Government was not go- ' Ling to embark ,on a i programme, of reckless expenditure but, he pointed out, the expenditure for- the .first ' quarter of the present year had . shown. an advance of £600,000. He .wa s inclined to think the South Island railway extension might also prove an extravagant undertaking. The Budget had paid a tribute to the Reform administration when it had .described how in May last New . Zealand's credit in London, after , Reform's terni ini office, :had heen such that it had been possible to raise a .loan on ; favourable terms. He wondered if the terms would be equally favourable when the country next went on the market. Had Sir Joseph Ward, as Finance Minister in the National Cabinet,

YESTERDAY'S SITTING.

BUDGET DEBATE CONTINUED. ~ {>■■

adopted a statesmanlike attitude lie • would have paid for the war out of ' taxation year »y year as it went have returned and found New Zea- ' land as they had left it. In summing up, Mr Hamilton stated the / Budget indicated a policy of borrow, j tax and spend. RURAL SECURITIES. Mr H. M. Rushworth said private financial institutions had been becoming shyer and shyer in regard to lending money on rural securii ties. That was not surprising in View of ths fact that gross produci tion was stationary while • costs of production were on the up grade. The margin between the two was continuously shrinking, and nobody would be particularly desirous of lending money on such security. But now it appeared the State Advances Department was adopting the same procedure. He had had numerous complaints of this department's refusal to advance loans to people in the country on the ground of unsatisfactory security, and he suggested a more liberal policy in relation to the valuation of these securities. i • HIGHER COST OF LIVING. Mr Rushworth protested against the raising of the cost of living by an increase in the primage duty. He agreed with certain aspects of the increase in land tax. Mr Rushworth outlined the activities of certain financial institutions and stated that in view of the size of their profits they should be sub-; jected to increased taxation. The financial institutions had secured a stranglehold on the Dominion, and this was a problem that would have to be tackled. The Prime Minister had stated the banking legislation j would be reviewed, but why was he delaying? He was strongly of opinion that income tax should .be incresed . while indirect * Jtfaxation I :..•■■' zr I and the burden on the'farmer should \ be reduced. SOME QUESTIONS. Mr J. &'. Fletcher said he wished to ask Mr W. D. Stewart some questions. Was he negotiating at the end of his term of office for a loan of £5,000,000. t Was he,going to take -the money at a higher or a lower rate of interest than. that at which it was eventually borrowed by~the .Prime Minister? The Reform 1 Government had estimated over £7,.000,000 for public works. How was it going to carry on these works with a loan of £5,000,000 when the programme called,for over £7,000,000, and what would have been left ' i . . i. ... 'for State advances, advances to settlers and other purposes?'He dis>liked the increased primage duty as much as any other member, but the. Financial Statement had to be balanced, i In reply to interjections on the subject, Mr Fletcher said he would, "prefer the whips !of primage to the scorpions of Reform administration. " He was. satisfied with. the. progress that .had been made in the past towards; a settlement of, the unemployment problem. What; was required was a big constructive programme of works to induce men' ; to go out to the country and sub-' sequently settle naturally" on the ! land. He suggested a bigger subsidy should be provided' for the Department of Science, and Industries, and he hoped for good.results from the Government's intention to develop the secondary industries. IMMIGRATION. "**"* Mr J. W. Munro alleged that farmers' unions, employers' associations and the Reform Government had sceme, following the war, to adopt a policy of immigsation with the, object of bsinging down woskers' wages. The result was the present economic position, and the question . was whether Labour's representatives could now trust the United Party. Referring to pensions, 'he suggested the Prime Minister should appoint a committee representative of all partie s to go into the whole question of reform of the present system and to make recommendations to the Government. This would be a splendid opportunity to break down the narrow party spirit and place the interests of the country first, and the proposal was par- . ticularly to be recommended at a time when the parties were so unusually evenly represented in the House. Mr Munro challenged the state- ; ment that there were 1,000 more j men employed o npublic works to- I day than during the Reform admin- | Isfration. He considered there i were very few more than formerly, and he would be glad to have an assurance that public works employees were not being paid only the relief rate of wages. He ex-

pressed, an opinion in favour of the construction of the (South Island railway extension. Dealing with the land policy, Mr Munro contended the Government always had the right to acquire corapulsorily such land as it considered was not being employed in the best Inlljrestg of the country, and /ie would support the Prime Minister in his effort to break up large and comparatively unproductive estates. The debate was adjourned and the House rose at 10.1 S p.m. till 2.30 p.m. to-morrow.