THE BUDGET.

Taranaki Daily News, 11 July 1923, Page 5

THE BUDGET.

DEBATE IN THE HOUSE. LIBERAL LEADER’S CRITICISM. TAXATION, DEBT, STATE BANK. .By' Telegraph .-—Press Association Wellington, Last Night. The debate on the Budget opened in the House to-night. The Leader of the Opposition (Mr. T. M. VVilford) said that in 1912 the Reform Party started their policy of “win-dow-dressing,” and he proposed to show how great Were the differences between the promises and performances of the party. The Premier, whose accession to power might be described as "a political accident,” had ridiculed his (Mr. Wilford’s) suggestion that there must he a reduction in company taxation, but now in his Budget he declared a reduction in company taxation must take place. The Premier had stated at Oamarii that amongst the interest-earn-ing assets which could be set against the national debt were railways, but as the railways last year earned only £2 16s per cent, instead of 3f per cent, the statement made by the Premier was one scarcely worthy of a Minister in his position. The Reform Party stood for the present banking system, and that constituted the fundamental difference between the party and the Liberal-Labor Party led by himself. The bank rate of interest was oppressive, and the bad times all over the world were being taken advantage of by the banking rings. The Reform papers were claiming that the Reform Party must remain in office, because there were some £60,000,000 of loans falling due during the next six years, but the papers did not tell the people that about half that sum was due to the Post Office alone, the renewal of which was only a matter of arrangement between the Minister for Finance and the Postmaster-General.

DUTIES TOO HIGH. Dealing with the proposed reduction in taxation, he declared the Customs duties were too high. As Minister for Finance, the Premier had indulged in a policy of borrowing and spending, and anything he could mortgage he mortgaged, and he wondered how long this career of borrowing and spending was going ,6n. He wanted to know why the Government had put nothing in the Budget which would offer some relief in connection with the currency and exchange questions. We send out of the Dominion some £16,000.000 worth of dairy produce annually, and when the costs and charges made on that amount were considered it was time the Government did something to relieve farmers of those charges. On the subject of loan redemption, he quoted the Budget of 1922. and accused the Premier of a breach of fajth in not carrying out the promises in that Budget, which breach of faith he claimed confirmed his opening statement that the Reform Budgets were only “windowdressing,” and intended to meet the necessities of the moment.

It was a much debated question as to whether in bad times the country should reduce the national debt or reduce taxation. He favored the latter, and declared that every £1,000,000 borrowed by the Premier put a further burden on taxpayers. We must set our faces against large borrowings, and an heroic effort must be made to reduce taxation on companies through the Customs. Coming to annual appropriations, he declared the expenditure on departments exceeded last year’s expenditure by £1,500,000, yet in face of this the Premier boasted in his Budget of economy. So far as soldier settlements were concerned the Government was hiding the true position in the Budget. Why did they not tell the House frankly what the country’s losses were in connection with these settlements? So far as land settlement was concerned, the proposal of the Budget was hopeless. This country would only be got out of its difficulties by a progressive land policy, which would immediately reduce the unemployed problem. MINISTER IN REPLY. The Hon. W. D. Stewart said Mr. Wilford had complained that the railways were not earning sufficient interest on the capital invested, but as a matter of fact they were earning a higher rate of interest than the standard set by the Liberal Party. The action of the banks doing business in New Zealand was nothing like so disastrous-to customers as Mr. Wil ford pictured. The fact was a State Bank could not do better for its customers than the present banks were doing. Speaking of the Budget generally, the Minister claimed it was remarkable evidence of the recovery made in the financial position. The economies effected imposed an enormous burden on the Premier, anft what he accomplished was a truly wonderful feat. Returns showed that our trade with the Mother Country was gradually improving under the preferential tariff. The railways were now doing well. New Zealand was the first country after the war to come back to a 4 per cent. loan. The debate was adjourned.