BUDGET DEBATE.

Timaru Herald, Volume CXXV, Issue 18349, 21 August 1929, Page 11

BUDGET DEBATE.

Preserve “ Prime Canterbury.” STATE BANK—SOLDI*”* SETTLEMENT. By TflUtfraph—Prax* AaaocUtfoa. ’ WELLINGTON, August 20. The debate on the Financial Statement was resumed in the House of Representatives this afternoon. “Prime Canterbury.” Mr R. W. Hawke (Kaiapoi), said he regarded the increase in the primage duty as something for the time being. He would not attempt to support the increase if he thought it 'Were to be permanent. He had no doubt it was necessary at the present time to obtain more revenue, and that this means would entail the least dislocation of the taxation system. Mr Hawke stated that land had been bought too dearly in the past, and as a result of inflated prices many farmers had had to give up their holdings. There would be nothing like cheaper money to encourage those farmers still on the land to stay there, and to encourage those who had left to go back. He said there was one thing in particular New Zealand should endeavour to preserve, and that was the reputation of “Prime Canterbury.” He had been impressed during a visit to England with the extent to which this product was advertised in butchers’ shops He considered a step towards maintaining supplies of this item would be taken with the completion of the South Island main trunk railway. Sheep and cattle were already on this land, which, even without any assistance in the form of a railway, was being farmed successfully. He considered land in this quarter was of splendid quality, and its value would be even higher when the railway was completed. Mr Hawke referred to the remission some time ago of a large amount of taxation on Racing Clubs, and said he considered more revenue could be raised from Racing Clubs. State Bank Advocated. Mr R. McKeen (Wellington), said that if the Government was honest and sincere in its endeavour to bring about closer land settlement, it could rely on support from the Labour Party. Mr McKeen expressed the view that if the increase in the primage duty returned a million sterling of revenue, to the Consolidated Fupd, it would cost the public two or even three millions as a result of increased prices of goads. He advocated a State Bank, from which 'the Government could probbaly obtain sufficient profits to balance the Budget. He referred to profits derived from State banking operations in Australia, which, he considered, should be equally possible here. Mr McKeen expressed opposition to the proposal to take a portion of the profits from the Public Trust Office, and place it in the Consolidated Fund. He agreed that this Department's fees were less than were charged elsewhere, but he did not think any profits should be taken for the Consolidated Fund uiitil the Department's charges for services had been reduced to a minimum He feared that the same policy might subsequently be adopted in connection with the State Fire Insurance Department, and he considered It was indefensible. The operations of State enterprises should be directed toward reducing the burden on the people. Mr McKeen continued that it would cost only £258,000 to restore the civil service salary “cut.” The Post and Telegraph Department was making very large profits, and it seemed to him that the time had arrived for salaries to be restored to their former level. The cost of this step would be £45,000 for railway workers, £I2BOOO for Post and Telegraph employees, and £85,000 for the general body of civil servants, making a total of £258,000. Mr McKeen, referring to the unemployed, said the position had not improved; in fact it had become worse. He did not think the Government had done all it might have done to face the position, and had shouldered too much of the responsibility on to local bodie3. Returned Soldiers’ Champion. Mr F. Waite (Clutha), said he thought it was generally admitted that New Zealand had done more in the way of pensions for returned soldiers than other countries had done, and even in settling returned men on the land he believed New Zealand had been more successful than other countries. He admitted that there had been some failures, as there must always be in big land settlement schemes. There had been failures in schemes in other countries, and there had been in the Mackenzie land settlement scheme in New Zealand. Aus tralia had been less successful than New Zealand with its returned soldiers land settlement scheme, and failures in the Commonwealth had been largely due to the same factors as had caused trouble to a lesser extent in this country. All the funds that had been provided for returned soldiers would be required, and they were keeping a very close watch on the Canteen Fund. Vocational training and the Repatriation Act had done very much to assist ex-servicemen, but it was now becoming evident that these schemes had been dropped too soon. All disabled ex-servicemen should be given assistance, whether their injuries had been received in the war or not. He referred to legislation affecting the employment and conditions of disabled ex-servicemen in European countries, and suggested that the time was opportune for legislation to be introduced to do something more for disabled men in this country. The Returned Soldiers’ Association had collected details indicating that there were 957 cases of disabled men out of work. Of this total there were over five hundred who could earn their living if suitable employment were available. He mentioned types of employment that were reserved for disabled ex-servicemen in Britain and other countries, and said he thought something should be done in this direction in New Zealand. Returned soldiers were not satisfied that the Government was doing all it could to meet the situation. Mr Waite said he was’ not referring only to the present Government. The Reform Govern xnent, too, had not done as much as he would have liked it to have done. Government departments should set an example to private employers, in providing work for partially disabled men, who would be much happier if they could earn their own living and maintain their self respect. This was a most important phase of the problem. The House adjourned at 5.30 p.m. The House resumed at 7.30. Mr Waite, in concluding, said the patriotic funds were rapidly being used up, and the Canteen Fund was regarded as a la6t line of defence. He regretted that the Budget did not indicate that any money had been set aside for the formation of a Commissino to inquire into the whole subject as the returned Soldiers’ Association had asked. Stampeding Farmers. Mr W. A. Bodkin (Central Otago), asserted that the Reform Party, assisted by the Reform Press, was endeavouring to stampede farmers into believing that they were seriously in danger as a result of the taxation proposals. However, even if such a view were accepted, it w'ould not last long, because the fanning community as a whole would soon receive evidence from the Commissioner of Taxes in the form of assesment of their taxation, which would show that the position was not as Opposition members had stated. There had been many refer-

ences to hardship, but these mostly concerned men who were in such a precarious position that they would be in difficulties as a result of the first slump in prices. Mr Bodkin expressed the opinion that it would benefit owners of heavily-mortgaged properties if the State were to acquire and subdivide their holdings, allowing the owner the right to select one sub-divis-ion without competition, and giving him the assistance of the State Advances Department or the Inter - I mediate Rural Credits Board. It would i give them opportunity to carry on in | a much better footing, and the future would then hold something for them. Replying to an interjection, Mr Bodkin stated that there might be properties that could not be subdivided, but they would probably be second and third-class lands, and these were not the properties that would be hit by an increase in taxation. Reform voices: “Oh, yes, they will be.” Mr Bodkin- “Some may be, but they can be subdivided and satisfactorily farmed by groups of five or six men. There would be plenty of applicants.” Mr Bodkin added that the fact that so many farmers had applied to the State Advances Department for loans since the United Party had attained office indicated how they had been starved for finance during the Reform administration, when, it had been almost Impossible for money to be obtained from the State Advances Department, and farmers had been forced to deal with private mortgages at a higher rate of interest. Mr D. Jones had stated that there was no need to worry about q deficit, as the money could be taken from the Consolidated Fund, but Mr Bodkin asserted that it would be disastrous for the credit of this country if we were to have two deficits in succession. Employment Problem. Mr R. Semple (Wellington), said that one of the greatest problems of the day was to find employment for the unemployed, and for young people leaving school. One step towards a solution of this problem would be the development of certain industries. We would never develop to the full the natural resources of this country, so long as we allowed our imports from the United States to exceed our exports to that nation to the extent that prevailed to-day. Certainly the land was the best means of absorbing unemployed, but there were other avenues that should be explored. More labour should be employed as a result of development of the motor-boy building industry, and as tobacco could be grown in this country it should be possible to reduce our imports of that product. Tariff barriers against the importation of our goods into the United States were considerably higher than the barriers against the importation of United States goods into this country. There should be no hesitation in increasing the duty on products from the United States, which had dealt so ruthlessly in trade matters with the whole of the British Empire. It should not be necessary to import coal Into New Zealand, and if the wood-pulping industry were suitably fostered it should not be necessary to import so much newsprint. All these industries would employ labour and would help to solve our economic position. Mr Semple said he did not wish to enter into a controversy on the \ subject of free trade. He considered 1 free trade would be as dangerous as too much protection. He was, however, strongly in favour of free trade within the Empire. It had been stated that the Labour Party was opposed to the use of machinery in industry, but that was not so. It was a good thing for a notion if it was possible to invent a machine that was capable of producing fifty times the amount of wealth as a human machine could produce. The problem was to distribute the wealth fairly, and to employ it in such directions that work would be available for everyone. It was an indication of a fault in our economic system that the invention of machinery had developed more quickly than our ability to "employ all our human machinery in productive work. It was the duty of the State to provide employment for young people leaving school. They had each some natural ability, and that gift had been developed by education. It was a tragedy that there should be instances when such ability could not be absorbed in any form of employment. Reform Defended. Mr H. H. S. Kyle (Riccarton), replying to Mr Bodkin, contended that the United Party was making advances to workers and settlers to no greater extent than had been maintained by the Reform Party, which had provided advances averaging five millions sterling per year during the last five years of its administration. Mr Kyle, further replying to Mr Bodkin, said there were some properties in Canterbury that : were producing more to-day than they would if subdivided into five or ten blocks, and subidivision would not result in any more employment. If there were small blocks they would probably i be worked by one farmer. Mr Kyle asserted that the views expressed by Mr Poison were by no means the views 1 of the farmers of New Zealand, whom he claimed to represent. Mr Kyle suggested that had the United Party put before the country the policy it was now trying to bring into effect, it would not be occupying the Government benches to-day. The number of farmers who would be affected by the reduction of amount of the mortgage exemption was 5933. The Prime Minister had stated that it was impossible to effect much economy in the Public Service, but it seemed that there was great scope for economy in the Immigration Department, as there was practically no immigration policy at present. The House rose at 10.30 p.m.