REFORM AID UNITED

Stratford Evening Post, Volume I, Issue 81, 14 March 1931, Page 5

REFORM AID UNITED

THE LABOUR AMENDMENT ■ / NO-CONFIDENCE ISSUE DEFEATED BY 30 VOTES NONE BUT LABOURITES REGISTER IN ; SUPPORT V Yesterday afternoon and evening the Go Merriment was subjected to a verbal barrage in the House of representatives, when the Address-in-Reply debate was contin.tr ed. The division was taken on the no-confidence amend xf ient, which was defeated by 50 votes to 20, only Labour mer/i'oers voting for it. An amendment was then moved by ?,lr J. McCombs, Labour member for Lyttclton, describing c the wage reduction proposal as inequitable and replacing it Ly a direct graduated tax on individual incomes, irrespective* of source. Discussion of the amendment was proceeding when the House rose at midnight.

"MISERABLE FAILURE" THE GOVERNMENT'S RECORD WELLINGTON, March IS. Continuing the Address-in-Reply debate in the Hou.se of Representatives to-day, Mr J. O'Brien (Labour, WesXl&nd) criticised the action of the insurance companies in refusing to pay out in connection with earthquake lonscs, and expressed the opinion that they should be prevented from doing further business in the Dominion. Mr O'Brien said that the, record of the Government had been anc of miserable failure. Attempts to solve the unemployment problem, up to the present, had been hopeless, the money paid into the fund being wasted. What was wanted was productive employment. Mr Forbes held out no greater hope to the the mortgagees and stock and station agents on their behalf. No hope had been given them of reduced rents and interest. Mr P. Waite (Reform, Clutha) confined his remarks to criticism of the completion of the South Island main trunk railway. He said it was the worst financial proposition the Government had undertaken and would result in an estimated loss of £IOO,OOO annualMr D. G. Sullivan (Labour, Avon) described the present session as a menace the working class. The Minister dismal utterances, followed by wholesale dismissals, had spread a mentality of depression. The Government had behaved every bit as harshly as the Reform Government could have, and he was surprised at such treatment coming from the Liberal Party. The Biggest Problem

Mr D. Jones (Reform, Mid-Canter-bury) said the prospective Budget deficit was not the biggest problem facing the country. The biggest problem was how would the people carry on with a reduction of £26,000,000 in the national income. If the Government carried out its present proposals it would have added £7,000,000 per annum to taxation during its term of office. It was useless to cut wages and increase taxation to balance the Budget without considering the budgets of the primary producers. Interest charges were far too high and the Government should provide cheaper money. Mr 11. Semple (Labour, Wellington East) attacked the Government's attitude towards railway construction. He said there was no excuse for the somersault in policy. It apparently had made promises to the electors without first having made an investigation into the possibilities of carrying them out. The stoppage of railway works had resulted in tremendous hardship. Workers and men had been dismissed without notice and ho could remember no parallel case of brutalities on the part of the Government towards its servants. Mr J. T. Hogan (Independent, Kangitikoi) expressed himself in favour of a graduated scalo of wage reductions if it were shown that reductions were absolutely necessary. He thought that before the House agreed to any cuts at all, the Prime Minister should stato when he thought he could increaso wages again or restore the cut. It should be possible to do so at the end of six months. The House adjourned at 5.30 p.m. Evening Session. The House resumed at 7.30 p.m., when the Address-in-Boply was continued by Mr W. P. Encican (Reform, Parnell). Ho complained that the Government had made no attempt to prepare for the present economic crisis, though it had been warned of its approach. He submitted that uneasiness on. the part of financiers as to the consequences of administration under the United Government with the support of Labour had resulted in their beingafraid to lend monev.

Mr W. D. Lysnar (Reform, Gisborne) said that nobody had dealt with the basic cause of the economic crisis, which was that there was no proper organisation for marketing produce in the Dominion. Ho strongly criticised tlie Government's decision not to complete the Gisborne railway and he blamed the Leader of the Opposition for stampeding the Government into this decision. The division was then taken on the no-confidence amendment, which was defeated by 50 votes 'o 20, only Labour members voting for the amendment.

Mr J. McCombs (Labour. Lytteiton) said he did not know whether to congratulate tho United Party on having gained the support of the Reform members and the Independents, or whether to congratulate Reform on having driven the Government in the direction it had been asking for the last two years. The Reform Party had put forward seven points and the Government had accepted six of them. The Opposition still hoped that the Government would accept the remaining point.. Mr McCombs intimated that he proposed to move a further amendment: "Drawing his Excellency's attention to the position of affairs in this country." He strongly criticised the Government's proposals, expressing the opinion that had Sir Joseph Ward live,! he would have found a different method of balancing the Budget. Mr McCombs suggested that a preference method of raising additional revenue would have been an increased taxation on beer and spirits producing £1,500,000. Amendment Moved. Mr McCombs moved an amendment in tho following tonus; "Wq deem it.

our duty to represent to liis Excellency that in the opinion of the House the proposals contained in his Excellency's speech to reduce wages and salaries to meet the fall in revenue are inequitable, as such proposals cannot be aplied to other persons whose incomes are derived from businesses, professions or other sources, and are further of opinion that in lieu thereof additional revenue should be raised by a direct graduated tax on individual incomes, irrespective of source."

The amendment was seconded by Mr W. J. Jordan (Labour, Manakau), who said that the need at the present day was for a statesmanlike policy that would bring down interest rates. Mr 11. T. Armstrong' (Christchurch East) asserted that the policy of the Government was being dictated by business interests.

Mr J. W. Munro joined the previous Labour speakers in condemning the proposed cut in wages and said that a reduction in the standard of living would tend to sow the seeds of revolution.

Messrs Langstone and Carr also sup ported the amendment, and the House adjourned at midnight until Monday.