THE BUDGET DEBATED

Taranaki Daily News, 8 September 1934, Page 9

THE BUDGET DEBATED

LABOUR CONTINUES ATTACK ’TAKALYSING OF INDUSTRIES.'’ GOVERNMENT MEMBERS' REPLY. POLICY ASSISTING RECOVERY. , By Telegraph—Press Association. Wellington, Last Night. Mr. H. T. Armstrong (Lab., Christchurch East), continuing the financial debate in the House of Representatives to-day, said he could see no hope for the people in the Budget unless it was the 9d a week for old-age pensioners, for which they had to wait until October. In the meantime the price of commodities had soared far above the increase that would be received. The whole basis of prosperity rested on the purchasing power of the people. The Government had gone the wrong way about the problem. The Government had paralysed industries that were in existence previously and had then taken the money of the workers to establish new ones. He asked if any member of the House wanted 2d reduction in the employment tax until the relief workers were properly provided for. Mr. A. M. Samuel (Co., Thames): "Not one.”

Mr. A. D. McLeod (Co., Wairarapa): And they don’t want the 5 per cent, inincrease.

Mr. Armstrong said it was not the small, wage earner but married people and big businesses that wanted a reduction.

Tire unemployment fund was being plundered by profiteers who were not in need of it, and for whom the fund was not established, continued Mr. Armstrong. Although irregularities had taken place in the operations of the building scheme and the Unemployment Board said that in such cases a demand was made for a refund of the subsidy, that demand was not made until the irregularities were exposed in the House. Mr. Armstrong said the Government was only balancing the Budget by increasing the national debt. He contended that there was no need to go to Auckland to see high finance. He considered there should be an inquiry into the Budget in addition to certain companies. Mr. W. A. Bodkin (Co., Otago Central) said the Budget was a hopeful message to every person in the country except those in the Labour Party. He severely criticised the Labour Party’s policy, and said the Labour speeches were wild and sweeping. He claimed that Labour members were inconsistent in attacking the Government for adopting an inflationary policy when inflation of a dangerous sort was one of the main planks of their own party’s platform. COMPARISON WITH AMERICA. Mr. Bodkin compared the remedies taken to deal with the depression in New Zealand with those adopted in the United States, and said the United States had been more favourably situated at the beginning, of the depressison than any other country, while New Zealand to a large extent had been dependent on overseas markets. To-day New Zealand’s condition redounded to the credit of the Government, which had courageously followed unpopular methods to rehabilitate industry and trade. The unemployed and the farmers of New Zealand had suffered severely, but there had been no strikes, whereas in America there had been considerable industrial unrest. Re criticised Labour’s statements that the Government should print millions of notes to guarantee prices to the farmers and pay pensions and other charges. He said the Labour Party desired control of the savings of the ' people so that it could distribute largesse among other sections. Mr. Bodkin said the mining law of New Zealand was obsolete. He considered Mr. Tyndall was the best man available to bring it up-to-date and make it suitable to modem mining conditions. As Under-Secretary of Mines Mr. Tyndall probably had the most mportant position in the Public Service. Mr. Bodkin also paid tribute to the Public Works Department for the improvement of backblocks roads. "GOOD IN SMALL PARTS.” Mr. J. W. Munro (Lab., Dunedin North) said the Budget was good in small parts. Referring to the proposed mortgage corporation, he said if it was necessary the House should sit over Christmas. That legislation should have been put on the Statute Book in the present session. Promises would not keep farmers who were in a difficult position. He believed a housing scheme would be one of the most useful things that could be inaugurated if it could be done with success. There was a shortage of houses, and a building scheme would set the wheels of industry in motion. f Referring to the Native Affairs inquiry, Mr. Munro contended that the Government should have accepted the Native Minister’s resignation when it was tendered. He had been approached by many persons who asked why the Opposition had not taken the matter up, and he had assured them that he would, unpleasant as the task was, raise the matter at the earliest Opportunity in the Budget debate. Mr. Munro considered nurses should have been the first to gain any benefit of reduction of taxation or increase in wages. He urged the Government, in co-operation with the Australian Government to do something to protect New Zealand shipping. He said he knew the Union Company had plans ready to build a. new vessel in British yards if some protection were given. Mr. J. Nash (Co., Palmerston North) claimed that the farmers had benefited greatly from the higher exchange, he said. It might be true that the banks and stock and station agents also benefited, but why not? They had carried the farmers through difficult times. There was an undoubted feeling of goodwill towards the Government since the Budget was issued. Every day an improvement was taking place, and he thought it justified the Minister of Finance in his optimism. SIGNS OF IMPROVEMENT Customs revenue had increased and ’ the excess of deposits over withdrawals in the savings banks had increased. There had been an increase in the number of building permits and wireless licenses. These were all evidences of improvement. He considered the increase in the old-age pensions, small as it was, would be gratefully received. He hoped next year the full 10 per cent, would be restored, as the country owed a debt io the people who had done the pioneering work. The Unemployment Board had done the best it possibly could for the unemployed with the money at its disposal. He urged the Government to seek fresh markets for butter and cheese in the East so that if Britain _ imposed quotas the Dominion would be in a posi- • . tion to meet the situation. He considered some consideration should have been given to a reduction of the cost of wireless licenses. There would be a greater demand if the cost were reduced. The Minister was to be congratulated on the success of the conversion loans, as it had had the effect of bringing interest rates down to a reasonable level. Mr. W. D. Coleman (Lab.. Gisborne) was speaking when the debate was adjourned and the House rose at 5.30 p.m.