HOUSE GRNTS URGENCY

Taranaki Daily News, 13 September 1934, Page 5

HOUSE GRNTS URGENCY

DISCUSSION OF BUDGET UNEMPLOYMENT TAX RELIEF CRITICISM OF DECISION SITTING LASTS ALL NIGHT By Telegraph—Press Association. Wellington, Last Night. Urgency was accorded the financial debate in the House of Representatives to-day. Mr. A. S. Richards (Lab., Roskill) said it was a false hope that the Budget would bring prosperity back to the country. He considered taxation should not have been touched, but that the unemployed and pensioners should have been reclassified and their weekly earnings increased, as that would have increased the consumptive power of the people. The Government claimed to be a farmers’ Government, continued Mr. Richards. It was rather surprising, therefore, that from time to time statements were made by Ministers that substantial rises in overseas prices might be expected. He could see no hope of a substantial rise coming. He protested against the change-over from the State Advances lending department to a mortgage corporation and said he could not see any benefit to the country to be derived. He contended that it was only wealthy persons and business men who would benefit from the wage tax reduction. Not many were receiving £2 a week or less. He criticised the expenditure on defence while the Government was not willing to spend a few thousands on old-age pensions. The House had no assurance that the defence equipment on which £300,000 was being spent would be up-to-date when it did arrive. The money could be better spent elsewhere. NATIONAL SUPERANNUATION. Mr. D. G. Sullivan (Lab., Avon) said he hoped the question of national superannuation would be taken up by Parliament and by the people, as it had farreaching action. If the people were given the security of such a fund the need for them to save would not exist and the whole economic machine would be stimulated and would contribute to the continued maintenance of prosperity more than anything else the House could develop. He believed the mortgage corporation would mean the destruction of the State’s great lending departments. He did not believe the corporation would extend to the countries’ borrowers the consideration extended by the various State Advances departments. It would be run on rigid lines, the first aim to be to secure the interests of the corporation. Mr. Sullivan contended that the people were too generous-hearted to want a reduction of twopence in the unemployment tax and said he hoped the Government would not persist in taking it away. The Minister had admitted that no class was suffering as the unemployed were suffering and there was an opportunity to give them some increase in their funds, but the Government was making a hopeless endeavour to make itself popular at the expense of halfstarved families.

Mr. W. J. Polson (Co., Stratford) said the control of the banking policy was the basis of sound economic life. Government control was necessary; it was absolutely necessary if the primary producer was to face the difficulties confronting him that interest rates must be reduced —he suggested to 3 per cent, on long-term securities. Dealing with the mortgage corporation he said he could not imagine the State handing its lending departments to a private corporation. STATE INSTITUTIONS. Mr. P. C. Webb (Lab., Buller) said the only State institutions that were in a flourishing condition to-day were those that had been bitterly opposed when originated by the Conservative-minded people of that day. He instanced the State Advances Department, the Public Trust, Government Life and State Fire Insurance departments and the State Mines Department. Mr. Webb said every step taken by the State showed it could establish big industries without the support of the big bank. Therefore he contended the State should have had comr plete control of the Reserve Bank. He stressed the need for planning to get the country out of its difficulties and said there was no need for the poverty which existed at present. Mr. Webb dealt with events in the early war years and the developments leading up to his imprisonment for refusing to go to war. He said the New Zealand Government was the only Government in the Empire that applied conscription to members of Parliament. He lost his civil rights for ten years. He went out by the front door and returned by the front door, but he had no feelings of animosity towards the Government. The Government at that time spoke of finding work and providing for returned men, but it was regrettable now to think the Minister of Pensions should live in the past. He would like to see a scheme evolved that would get food into the homes of the people and find work for boys and girls. He thought all sides of the House should get together and inspire a message of hope for the people. Surely they could alter the present state of affairs! There was no reason why anybody should be in want in a young country where there was food in plenty. “UNPLEASANT THINGS.” Mr. H. M. Campbell (Co., Hawke’s Bay) said the Government had had to do some of the most unpleasant things that in normal times most members would not have cared to stand up to. Those things had saved the country from disaster. He believed now the country was sailing along smoothly and that the next Budget would show a proper surplus. Mr. Campbell said he would like to have seen a greater reduction of the unemployment tax. He appealed to the Minister of Lands to consider remitting some rents that had piled up against farmers and give them some hope. Mr. H. Atmore (Ind., Nelson) criticised the Government for not giving more consideration to old-age pensioners. He said the recent increase in the price of wool was due to buying by Japan, which wished to put its army into woollen uniforms. It would be better, he submitted, if some nation would wear more woollen clothes. The Government seemed to be fighting against the advent of the machine and was trying to find manual work for boys and girls leaving school. The Government did not seem to realise it was the consumer that had to be considered to improve the condition of the country instead of the producer. Without purchasing power the people could not buy. Mr. Atmore said the only sound basis for trade with any country was goods for goods, and if New Zealand could secure cheap goods from Japan in return for her produce she should take them. Mr. E. J. Howard (Lab., Christchurch South) said everything the Coalition Government had done since it took office had been against the workers and in favour of the moneyed class. (Left Sitting.)