BUDGET PROBLEMS

Sun (Auckland), Volume IV, Issue 1043, 6 August 1930, Page 10

BUDGET PROBLEMS

DEBATE CONTINUES IN HOUSE “A RAIDING POLICY” Press Association WELLINGTON, Tuesday. The Financial debate was resumed in the House of Representatives today. Mr. J. S. Fletcher (Independent— Grey Lynn) said the Government had started a raiding policy and was raiding a number of funds. £;ome of the departmental savings were the height of political folly. Instead of some of the votes being decreased they should have been increased, because industry could not expand in the country without expenditure. He was in favour of capitalising the Highways Fund instead of building for 10 years and trying to pay in one year. If the Government had increased liquor licences, increased postage and capitalised the Highways Fund, there would have been no need for other taxation.

Mr. A. W. Hall (Reform—Hauraki), said he did not think anybody would consider it wise to construct railways purely for passenger traffic. In this respect motor competition rendered an adequa ) > return unlikely, and it was to goods traffic that the country had to look for a large share of railway revenue. He considered that suburban services could be improved by having lighter and faster trains, and by eliminating first-class carriages. “MAORIS SUFFERING TOO"

Mr. T. Makitanara (Government— Southern Maori) reminded the House that while unemployment was rife among Paltehas, Maoris also were sufferers. but they suffered in silence. He urged that the wheatgrowing industry should not be allowed to be stifled. Maoris had been producing wheat in the North Island as sLiccessfully as any farmers in the South. Mr. C. H. Chapman (Labour—Wellington North), speaking on railway matters, said that reduction of wages or the dismissal of men would not solve the problem at present facing the Dominion. The Government could be congratulated on not having so far suggested a reduction in Avages. but it had made the mistake of discharging men from economic Avork and adding them to the total of the unemployed. He urged the Government to adopt a scheme of graduated incometax. in preference to other means of raising revenue.

Mr. IT. M. Rushwortli - (Country Ray of Island), said the Budget recognised that primary products Avere responsible for 91 per cent, of the countrys exports It did not seem to be generally realised that exporting primary Producers had dropped as much T^«/ 8 H 000 f 000 i n the last six months, instead of endeavouring to ease the burden on this section of the community, the Government was introducing taxation proposals that would add to its difficulties. One felt very uncomfortable indeed for primary producers, especially those out in the back blocks. Math regard to back-block roads. Mr. Rushwortth said the Budget referred to the provision of better means of access, but it made no promise of what actually would be done I he House rose at 10.30 p.m.