LONG DEBATE BEGINS

Taranaki Daily News, 4 September 1935, Page 7

LONG DEBATE BEGINS

PARLIAMENTARY SESSION THE ADDRESS-IN-REPLY DEBATE. MOVER TALKS OF TAXATION. OPTIMISTIC TONE OF MR. F. LYE. By Telegraph—Press Association. Wellington, Last Night. The Address-in-Reply motion was moved in the House of Representatives to- night by Mr. A. D. McLeod (Co., Wairarapa). Mr. McLeod referred to the jubilee of the King and to the excellent impression created by the new Governor-General. He went on to say there had been a definite improvement in the country’s position during the last twelve months, and he thought the Government could claim a fair share of the credit for that improvement. After referring to the serjousness of the unemployment problem, Mr. McLeod said that if a majority of the electors at the polls declared Labour should rule in New Zealand he was quite sure those with whom he had been associated in politics would give Labour a fair chance. He hoped that whatever happened at the election they would not have a Government in office that was not in power. The greatest calamity that could happen to a country was to have a Government held in office by a middle party, Mr. McLeod referred to the depression that had . faced the whole of the-Empire since 1929-30 and dealt with Labour’s plan to overcome it. He asked if Labour was aware that from 1910 to 1929 the average price of butter in New Zealand was Is 3d a lb. and the average price of wool was £l5 10s a bale.

It was not an easy thing to make trade agreements; the; could not be made over the telephone. Only recently two Ministers had left New Zealand to endeavour to arrange agreements, and long discussions with representatives of other -countries had taken place, yet the Leader of the Opposition, if he became Primp Minister, was going to make agreements in a very short time, Mr. McLeod also claimed Mr. Savage’s statements in reply to Sir Alfred Ransom showed he was a believer in inflation t$ the skies. TAXATION COMPARISONS. Mr. McLeod admitted taxation was high, too high, but said the question of a remedy was a difficult one. It was a problem that faced the whole Empire. Taxation in Britain amounted to not less than £l6 or £l7 a head of the population; in Australia it was £l7, That in’ eluded £2 a head in subsidies. In New Zealand the total amount was £l5 18s 7d a head, which included £3 18s 7d for unemployment. Mr. McLeod agreed that as far as dairy produce was concerned, New Zealand’s consumption could be increased, but it was a question of adjustment of values. The farmer was glad if he received 5d a gallon for his milk, yet by the time it reached the consumer the cost was 15d a gallon. The total taxation in New Zealand going to the Consolidated Fund was 1 £20,176,345, but had it not been for the exchange rate that volume of taxation could not have been collected. Mr. F. Lye (Co., Waikato), who seconded the motion, surveyed the causes of the depression and the actions of the Government to offset that depression. He believed the remedy to be applied must be international. "Both nationally and internationally the world was staggering under a burden of unproductive debt, and a policy of economic nationalism was adopted. He believed war debts should either be wiped out or repudiated, Britain had abandoned free trade and New Zealand had to take certain steps to meet |he situation that had arisen. I

Mr. Lye added that the fall in the internal debt, the increase in the price of products and the adjustments that had taken place in New Zealand would largely take the country out of its troubles. He believed there was reason to hope in a general improvement in the not very distant future. He had been given to understand that a very great improvement had taken place in Britain, and it had to be remembered that Britain was New Zealand’s best customer. There were abundant signs of recovery, so the people could face the future with hope and confidence. The passing of legislation to benefit the farmers had been very beneficial, said Mr. Lye. Figures issued in the past few days showed that 15,000 applications for relief were filed in the courts, 14,428 were referred to adjustment commissions and 13,673 had been dealt with by the commissions. The total value of the property was £30,000,000. He also had reason to believe that for every case settled by the commissions two were settled privately between the mortgagoi- and the mortgagee. He claimed that while what had been done appeared to have been done for the farmer it had been done for New Zealand. He urged that close attention should be paid to the improvement of New Zealand’s products. Mr. Lye referred to members who had indicated their intention not to seek reelection to the House. He regretted that nothing could be done for members who had given many years of valuable service to the country. He thought some superannuation scheme should be formulated for members. He hoped the Government would give consideration to the matter during the present session. The debate was adjourned and the House rose at 9.45 p.m.