ESTIMATES DISCUSSED

Taranaki Daily News, 2 December 1933, Page 9

ESTIMATES DISCUSSED

URGENCY GIVEN PASSAGE SOLDIER SETTLEMENT POLICY. DRAWING UPON THE RESERVES. SECURITY NOT JEOPARDISED. By Telegraph—Press Association. Wellington, Last Night. Urgency was obtained for the. passage of 14 clauses of the Estimates, including agriculture, railways, customs, post. and telegraph, health and mental hospitals, in the House of Representatives to-day. The Prime Minister, the Rt. Hon. G. W. Forbes, explained that the Government’s reason for desiring the Estimates to be dealt with yesterday had been to secure the advantage of a full day’s consideration, so that southern members desiring to go home for the week-end could catch the steamer to-night. , Mr. D. G. Sullivan (Lab., Avon): Do you propose to do two days’ work in one?

Mr. Forbes: It is the work we should have done yesterday. It is proposed to take Government Bills to-day, because the sitting is ordinarily a short one. I have no objection to the policy followed by the Opposition yesterday. The questions raised had to be discussed some time.

Discussing the vote for the Discharged Soldiers’ Settlement Act, Mr. F. Langstone (Lab., Waimarino) asked what was the amount being paid to the banks as the result of the hypothecation of reserves. He also asked whether the money in the fund was returning sufficient interest to meet the obligations to the banks.

Mr. A. J. Stallworthy (Ind., Eden) asked whether there was a possibility of the actual management of settlements passing to the banks. ADVANCES TO GOVERNMENT.

The Rt. Hon. J. G. Coates said money had been advanced to the Government on the security of the reserve fund, and when it was convenient for the country it would be repaid. Mr. Langstone: How much has been advanced to the Government? Mr. Coates said £2,500,000 had been advanced last year and £2,000,000 this year, making £4,500,000 altogether. It was a convenient way of raising money without calling on the taxpayer, and the money would be paid back either by an internal loan or by some other method when the finances of the country were buoyant again. The interest being paid was 5 per cent. Mr. Langstone: How much is in the reserve account? Mr. Coates said that the original value of the securities had been about £13,000,000, but some of them had been written down. The Minister said there was no danger of the, banks gaining control of settlements, which were perfectly safe as far as the occupiers of properties were concerned.

The Hon. E. A. Ransom, Minister of Lands, said that interest on discharged soldiers’ settlement loans amounted to £1,103,750 in the last financial year. There was no danger of the security of the fund being jeopardised by hypothecation of reserves. Replying to other points raised, the Minister said that if members could show him individual cases in which Crown tenants under the Discharged Soldiers Settlement Act had not received a fair run he would give an undertaking to reinstate them either on the same farm or on some other. He would also suggest that if Crown tenants still on farms felt that they were not getting a fair deal they should make an application to the Mortgagors Relief Committee. The Government would be prepared to stand by the recommendation of that committee. REVALUATION IMPRACTICABLE. “This is not a time that we can reasonably fix valuation for the next 21 years,” said the Minister, replying to a request by Mr. A. M. Samuel (Co., Thames) for a revaluation of settlement lands. “The markets are so unstable that it will not be possible to arrive ■ at a sound basis on which to fix valuation. However, I can give an assurance that , the Government intends as soon as prices are reasonably stabilised to deal with the question of revaluation.” . The vote was passed.

Replying to the discussion ori the forestry vote, Mr. Coates said that aS a result of the world’s resources in softwoods following the Imperial Conference in' 1926 it was considered that there would be a definite shortage within 16 years. There had been a check to consumption owing to economic causes since then, but even taking this and the use of substitutes into acount world authorities were of the opinion that New Zealand’s softwood resources would be required. He predicted that the time would come in the not very far distant future when New Zealand Would be very glad that it had adopted an -afforestation policy. Replying to a question raised during the discussion on the vote for the Agricultural Department, the Hon. C. E. Macmillan said that, speaking for himself, he had no intention of relaxing the embargo on stock until there was a general feeling among farmers that it was safe to do so. The effect of competition between rail and seaborne traffic was mentioned by Mr. Fraser during consideration of the railway estimates. The Prime Minister, replying, said there was no desire to compete in such a way as to ruin the coastal shipping services. He. would be very sorry indeed to see that happen. Mr. Fraser: Cannot we have some sort of co-ordination. Mr. Forbes: That is bound up in the co-ordination of all transport services so that the public would be protected from exploitation. Mr. Forbes said this was an objective which the Government kept continually in view. He explained that whereas the railways formerly had to compete only with seaborne traffic they had now to compete with road transport as well, and the board had had to amend its rates in order to maintain its business. Replying to a number of questions as to the Government’s intentions regarding B class radio stations, the Minister said he would make a statement in the near future on the subject of broadcasting after consultation with the Broadcasting Board. Mr. R. McKeen: Will the service be as good as formerly? Mr. Hamilton: We hope so; we hope it will be better. The following votes were passed: Land for Settlement, £4100; Discharged Soldiers Settlement, £57,000; State Forests, £125,062; Agriculture £653,875; Prime Minister’s Department, £21,939; Railways, £4,939,480; Treasury, £33,885; Customs, £84,645; Lands and Income Tax, £61,850; Stamp Duties, £80,420; Post and Telegraph Department, £2,321,851; Industries arid Commerce, Tourist and Publicity, £118,000; Health, £723,016; Mental Hospitals, £252,000. The House rose at 5.40 p.m. until 2.30 on Tuesday.