VOTE DELAYED

Taranaki Daily News, 17 October 1931, Page 9

VOTE DELAYED

NOiCONFIDENCE MOTION FRESH AMENDMENT MOVED Attack by mr. wilkinson interest on rent rates CRITICISM OF COALITION By Telajiraph.—Press Association. Wellington, Oct. 10. . The .debate- on the 'rib-confidence motion was resumed in the House of Representatives this morning. hjri. C. A. Wilkinson moved as an amendment that the following words be prided tp the motion: "“(I) That the Government does' not possess the confidence of the House because of the failure to provide or to indicate any provision for a statutory reduction of interest rates on mortgages on land, on chattel securities and on bank overdrafts, arid for a reduction of rentals on land and buildings commensurate with the reduced earning power of tenants thereof; (2) and further, because it lias not taken steps to provide for a full and open'investigation into the banking, currency and credit systems’ operatioii iri London.” Mr. Wilkinson invited the Government to deny that the Reform Party had already agreed to extend the life of the present d?arliajrient one year. He did not think the statement could be denied. It. seeriied to be an accepted fact. Mr. J. A.‘ Nash: Are you in accord with it? Mr. Wilkinson: No, I am not, because I. do not agree with the Government’s policy, which is one of high taxation under every heading. I believe it is going’ to add to tjie troubles of the country sooner or later,' and I suggest that the Government should go to the country And seek a mandate for this policy. With a change iri policy such as there has been the first and obvious thing should be to get a. mandate,- from the people, and I venture to say the GovetninCnt would have some little difficulty in getting it. ' , “REMORSELESS TAX COLLECTOR.” ■After criticising the Government’s proposals generally Mr. Wilkihson said Mr. W; D. Stewart was the most remorseless tax collector that the people of New Zealand had ever put into the position of Finance Minister. The present 'Coalition Government had ‘the. taxation complex. Ho suggested what was required at tlie present time was an economy complex. Mr. J. S. Fletcher: And a constructive one, too. Mr. Wilkinson: Yes,.l agree that the Governinent requires a constructive complex, too. Mr. Wilkinson went on .to criticise the increases in the Customs duties and said the Government had gone taxation mad. A position would arise that as a result of the extremely high duties the people would not be able to buy goods, whereupon Customs revenue would fall tremendously. It had already fallen as the resiilt of a mistaken policy arid would continue to fall. ; Opposing the suggestion that the wages tax might have to be increased Mr. Wilkinson said the Minister of Public Works had £2,500,000 to spend on unemployment. Much of this money might just as well be thrown in the gutter as to be used, as at the present. time. Mr. S. G. Smith: You are reflecting on your owji local bodies. Mr. Wilkinson said he was referring to local uneriiplbyment coirimittees. The money was being wasted in the town in which he himself lived. Mr. J, A.' Nash: You would not say that in .'your town! Mr. Wilkinson: Oh yes I would. 1 will say it anywhere. I don’t care two pence whether I come back to this Parliament or riot. . 1 Describing the arrangement for the fertiliser subsidy Mr. Wilkinson said it ■was one of the worst bargains that had ever been made by any Minister of Agriculture. He asked why the subsidy was granted ohly with respect to superphosphates, pointing out that two-thirds of the users of fertilisers in the North Island did not employ superphosphates. It meant that they would have to pay in taxation for the benefit which the remaining one-third obtained. , Mr. J. ,S. Fletcher (Independent, Grey Lvnn) seconded the amendment and criticised the actions of the United Governinent. MR. S. G. SMITH’S POSITION. Following an allusion to Mr. Fletcher’s defection from,the party Mr. Smith said: You were never missed! Mr. Fletcher: Perhaps I was never missed, but seeing that you were disrated for incapacity you should be the last man in the House to say that. Mr. 'Smith: That is only your opinion, and it is not worth anything. Mr. Fletcher: Well, the United Party ■ wanted their five most capable men, and you were not among them. Mr. Smith: The United Cabinet consisted of 14 capable men. Mr. Fletcher: Yet you had to go outside and seek assistance from the party which had been criticising all your legislation. Mr. Fletcher criticised the Government’s failure to give adequate consideration to the proposal that the State should instal a petrol refining plant, and said it would cost £300,000, but the profits for the first year would amount to £500,000. The Government could sell \ petrol wholesale at lOd a gallon. A member: What about taxation? Mr. Fletcher: There would be 8d a gallon taxation added to that.. A member:. Why doesn’t private enterprise undertake the scheme, then 1 Mr Fletcher said that if any company endeavoured to take up the scheme it would be crushed by importing companies who would immediately flood the country with cheap spirit. However, if the Government undertook the business it could keep the price a hxed ■ lev el. It would reap the profit and at the same time would give employriient to a large number of men. ’ Mr. C. Carr (Labour, Timaru) said it sounded like a hollow boast and a hollow sham when the Prime Minister said he believed in the common sense of the people, because he was obviously 1 not prepared to go to the electors for a declaration on his policy. Mr. Forbes apparently considered that while he appreciated the economic situation the majority of the electors did not, and for that reason lie proposed to inflict his will on the people and with the aid of the Reform Party to bludgeon his policy through. Mr. Carr declared that when any man adopted that attitude he was looking for trouble. * CRITICISM OF THE CABINET. Mr. W. T>. Lysnar (Independent, Gisborne) said that while he did not wish to support either Mr. Holland's motion or Mr. Wilkinson's amendment, he endorsed the sentiments expressed in the

latter. He was not going to vote for it because ho did not think the time was opportune for an election. He was not prepared to say that the present Government was capable of dealing with the situation, but he was prepared to give it a chance. ®

Criticising the composition of the new Cabinet Mr. Lysnar said he believed that the United members had been well chosen. Mr. Coates was in his right place and so was Mr. Stewart, though there! was a lack of backing for. the latter. There should be sortie deterrent to Mr. Stewart’s compromising tendencies. Mr. Hamilton was a true and loyal Scot and would vote for his party. Mr. Young was harmless, but had no push or originality. There were in fact three drones among the Reform members, arid these three drones would be the Ultimate destruction of the Coalition. Mr. Jones was the dangerous element of the Cabinet. He represented all the elements of the old Reform school wliicll had been the destruction of the party. He would look at every point from the party arigle. BURDEN OF INTEREST RATES. Mr. J. T. Hogan (Ind., Rangitikei) expressed the view that interest rates should be reduced arbitrarily. He did riot advocate reducing the lower rates, but interest of 6,6 i and 7 per cent, and over should be reduced. Lenders of the £38,000,000 internal., local body debt should be prepared to do somethiricr to help the Government and the country. On over £32,000.000 of that amount the rate of interest was 5J P pr cent., and if this were reduced by only J per cent, the local bodies would be relieved to a tremendous extent and would be enabled to afford great relief to the ratepayers. Touching on private mortgages, Mr. Hogan said that if a reduction of 1 per cent, were effected it would relieve mortgagors in New Zeat land to the extpiit ■ of £3,000,000. If the mortgagors’ position were stabilised it would also be beneficial for the mortgagee. A crash would bring down not only the mortgagors but also the mortgagees. ‘ x T Mr. Hogan said the present policy of the Government was probably the most anaemic that had ever been brought on to the floor of the House. It was no justification for postponing the election. “This is the policy of a neurasthenic Govermnent/’ he «aid amidst laughter. The change in Government was a great betrayal, and. if the people had an opportunity dqring the next month of expressing their opinion on that betrayal some of the Reform members would never see the inhide of tho .House again. He described Reform as an extravagant party which was responsible for New Zealand being “on the rocks” at present. Mr. R. Semple (Lab., Wellington East) referred to the allegation made by the Rriine Minister that the Labour Party was being dictated to by the Alliance of . Labour. He said some members of the Alliance were distinctly hostile to the Parliamentary Labour Party. Some members of the United Party had made no secret of the fact that they were in favour of the completion of the South Island main trunk line, and one of them had gone so far as to state in. public that the supporters of this railway could count upon him as one friend at least. When asked after the vote why. he had supported the Government he had said he had been threatened with expulsion from the party. Voices: Who was he? Mr. Semple: I am not going to use any names. RAILWAY BOARD CRITICISED. Mr. Semple went on to’ refer to the personnel of the Railways Board. Sir James Gunson, he said, had tried three times to become a member of Parliament but the people would not have him at any price. As general .manager they had an overpaid, overrated and underworked man who had not shown the ability that had been claimed for him. Another member of the board had been a member of the Upper House and had apparently been retired as unfit for further public service. , These “business men” knew as much about railways as the railway lines knew about them. - Most of their, time during the inspection of the South Island mairi trunk line had been; spent? in an inspection of a dead whale. After they had inspected the while they had hurried back again and made their report. Mr. J. G. Coates: Do you suggest the whale was worth more than the South Island main trunk? Mr. R.. Semple: I believe I would prefer the whale to the board. Mr. Semple said one could not help listening to the murinurs of discontent from members of the United Party over, the recent political developments “and listening to ex-Ministers shedding crocodile tears,” yet they were told there was peace, tranquility and co-ordination within the ranks and that they were a happy family. “The fact is,” said Mr. Semple, “that they walk about the corridors almost hissing at one another and then come away from the caucus sayino- that they are all in co-ordin-One could imagine their caucus as a conglomeration of Kilkenny cate.” Mr. Semple criticised the Minister of Agriculture for holding the chairmanship of the Meat Export Control Board at rhe same time as he was holding Cabinet rank, because there was bound to be a clash between the two offices. The Minister received £l2OO a year as the holder of the portfolio and £540 a year and travelling expenses* from the "Meat Board. “A JOB AGGREGATOR.” Mr. F. Langstone: He’s a job aggregator! 1 Mr. Semple said the Minister had no right to hold the two positions and should resign from the board. He should allow someone else to take his place—perhaps the member for Gisborne. (Laughter). Mr. Semple said Mr. Coates had taken credit for the Unemployment Board’s new policy, whereas his statement had been under preparation three months ago. Mr. Coates in announcing the statement over the air had given it a liberal sprinkling of the word “I.” It was a remarkable coincidence that as soon as he had finished his announcement the gramophone record constituting the next item had been “Give Yourself a Pat on the Back.” (Loud laughter). Mr.sF. Lye (United, Waikato) said that while he did not like the present proposals he could not see any alternative. He defended tho action of the Government in respect of fertilisers, and on behalf of the producer® he expressed thanks to the Government for enabling a reduction in the cost to be brought about. Replying to Mr. Wilkinson, Mr. Lye said. that°more than two-thirds of the manure used in New Zealand last year was superphosphate. Anything that could be done to induce the producers to use more superphosphates should be done. It was preferable to basic slag, and no other pressing had the same effect. It would be false economy to n av a subsidy to foreign countries for superphosphates, and the Government was doincr the right thing by keeping the money in the country and subsidising New Zealand nianufacturers. . Mr. J. O’Brien (Lab., Westland) said it was mere camouflage to say the breaking down of the Arbitration Court would make for more work on the farms. He suggested the coalition had

taken place with a view to defeating Labour; . _ Mr. Forbes:. Did not we invite Labour to come in? Mr.. O’Brien: There was never any invitation, and when the economic committee was set up we had the Reform and United Parties going behind, the back of the committee and holding a secret meeting 60 as to defeat the La/bour Party. A MATTER OF' COURAGE. Mr. O’Brien declared that members of the Reform and United parties did not trukt one another and that the Prime Minister feared «to go to an election. . . Mr. S. G. Smith: The Prime Minister has more Courage than the member for Westland. Mr. O’Brien: I have not got much but I have a' little iriore than the lion, mem“I don’t want to intervene in thq debate,” said Mr., Forbek, “but I would like to suggest that we stop this interminable debate and get to a division. There is nothing io be gained by all thin talk, and if we get to a division beforri 5.30 ihe Leader of tho Opposition will then know what he now wants to know.” ' a Mr. Holland: If you can give us an assurance that there will be an election at the usual time we will curtail this debate right away. Mr. Forbes: Do you not mean to carry on this debate until there is an election? (Laughter). Mr. Forbes said he would make a statement regarding the election in due course, and in the meantime he did not see why they should be delayed by a long-drawn-out debate. He had never said there would be a postponement of the election, and until he did so members could carry on in the usual way. He appealed to members to end the debate and hinted that . the-closure would have to be used if members insisted on carrying on the debate. Mr. H. M. Rushworth (Country Party, Bay of Islands) criticised the Government’s attempt to deal with the economic situation. He said no doctor would treat a patient’s symptoms separately but would prescribe a remedy for the complaint itself. The Government had failed to recognise the necessity for dealing with the economic problems in this manner. There should be a thorough inquiry into the question of currency, production and distribution. He had no alternative but to support the amendment. 1 Mr. E. J. Howard (Lab., Christchurch South) said Mr. Forbes had complained of tlie time spent by Labour members in discussing the motion before * the House. Members would recall that Mr. Forbes when in opposition had not hesitated to speak on every possible occasion. , , The delbate was interrupted by the rising of the House at 5.30 p.m. till 2.30 p.m. on Tuesday.