The Daily News FRIDAY, SEPTEMBER 14, 1934. THE BUDGET DEBATE.

Taranaki Daily News, 14 September 1934, Page 4

The Daily News

FRIDAY, SEPTEMBER 14, 1934. THE BUDGET DEBATE.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA, High Street.

The decision to bring to an end the long debate on the Government’s financial proposal is likely to meet with general approval. On the whole the debate has been disappointing, having proceeded generally on strictly party lines. In one or two instances there have been indications of a broader vision and an attempt at something like constructive criticism. The analysis of the Dominion’s financial position made- by Mr. Downie Stewart was exhaustive and dispassionate. Mr. Stewart knows the responsibility any Minister of Finance must assume, especially when revenue is hard to obtain. His conclusion that the high exchange rate has hindered rather than helped the return to a balanced Budget was in keeping with his formerly expressed opinions, and there is no doubt that Mr. Stewart’s views are shared by a very large section of the public. For the current financial year the ex-Minister considered revenue would be easier to obtain, though he admitted this was only because the widespread net of taxation was likely to make a bigger haul, and Mr. Stewart knows only too well that so long as high taxation continues the chances of wider business enterprise are not very substantial. The same point was emphasised in the criticism of the Budget made by Mr. C. A. Wilkinson, M.P. He, too, emphasised the penalties, particularly upon local authorities with oversea loans and upon importers, inflicted by the high exchange rate, and he drew attention also to the crippling effect of the heavy load of taxation industry is asked to carry. There can be no question of this ill effect being serious. The Ministry’s attitude is that high taxation is inevitable until the national accounts have been balanced, but there is a large body of public opinion convinced that many economies in governmental expenditure could have been brought about if they had been sought with the same zeal as has been displayed in the search for avenues of taxation. Had those economies been effected it is contended that industry would be less heavily taxed, employment would increase, and the public' finances improve more rapidly because there would be less spending and more /e venue. The Opposition’s criticism has followed the lines that might have been anticipated. The Labour members can see no good in any of the proposals of the Government, but the only alternative suggested has been the favourite one of borrowing the way out of the financial depression. One Opposition member, Mr. P. C. Webb, in the closing portion of the debate made a suggestion that can be commended. He urged that all sides of the House should get together to see whether a better policy of unemployment relief could be evolved. If such co-operation could be obtained and party considerations jettisoned in view of a common peril and a common duty there might be some hope of effective action without attempting monetary experiments that have nothing but theories in their support. Naturally experience of the past is likely to make the Government cautious in regard to round-table conferences. Nevertheless if Mr. Webb was spokesman for his party his suggestion should receive sympathetic consideration, for though the condition has improved, the full solution of the problem of unemployment has certainly not been found. The whole financial debate has been overshadowed by the uncertainty in regard to the future marketing of New Zealand produce. If the markets in Britain are to be restricted severely the forecasts of the Budget may need review, and fresh efforts have to be made to bring about a proper balance of national accounts. Unfortunately the solution of that intricate problem does not come within the control of the New Zealand Parliament.