BUDGET DEBATE.

Timaru Herald, Volume CXXV, Issue 18352, 24 August 1929, Page 8

BUDGET DEBATE.

RESUMED BY HOUSE. | By T«l«gr«ph—Prtu Aiaoclitlon. WELLINGTON, August 23. The Hon. A. J. Stallworthy, said ho had recently seen a statement that the Highways Hoard had a balance of £ooo,ooo. This was entirely a wrong state of affaire when there were many unemployed in the country. Mr Stallworthy said Mr W. D. * Stewart had made light of the fact that there had. been a .small deficit last year, but in one of his own Budgets he had stressed tho importance of balanc ing aocounts. The present Finance Minister was setting out to balance the Budget, and to introduce a. progressive programme of development. When ReReform members criticised Sir Joseph Ward for not having yet put all his elec tion promises into effect, they should remember that when. Sir Joseph Ward had put these proposals before the elecj torg he had the right to expect that felected he would have three years at ■ least in which to develop his programme. Mr Stallworthy said he was | confident that the Prime Minister ; would be able, within reasonable time, j to give efFect to all his pledges. Referring to the Government’s land proposals, Mr Stallworthy said they should result in a reduction of the speculative values of land in New ZeaI land, and this should ultimately be a j Godsend to the country. At Hhe present time there was a tendency for some I producers to bo delivered into the j hands of the moneylenders, a& a resuit of their holding properties of ' greater size than they Could afford. He referred to the axiom: “Who owns I the land, owns the people,” and he statjed that under the new system, the state he had outlined should oease to exist. The debate had indicated that many members did not have a clear outlook on the subject of taxation, ' which should be based on payment for i services rendered bv the State, and the i exemption, from taxation that large landowners had enjoyed in recent years did not. comply with that principle. Mr W. J. Jordan (Manukau) urged the Minister of Education to investigate the position, and ascertain whether any steps could be taken in the interests of a candidate, who on applying for a recount in a university scholarship examination, had been ini formed that his papers had been acci- ! dently burned. The former Minister of j Education had stated that the DepartI ment had no power over the University I Council, but Mr Jordan said he thought tli© Minister should endeavour to exert at least his influence on the University Council in order to secure justice in such a case.

Mr Jordan said there was a point in regard to mortgages, to which he would like to draw attention The Prime Minister had stated that he would borrow at 4£ per cent, and advance money at per cent. Ho had not been able to obtain as favourable terms as he had expected, tut even sq., it might have been possible for him to have advanced money with the same margin between the rate at which he raised and advanced it. He had raised money at £5 Os Id per cent, but 6 and even 6* per cent was mentioned as the rate on advances. Mr D. McDougall (Mata ura) expressed the opinion that the increase in primage duty would have little effect on the working man’s family, even if it were passed on, and he named a list oi foodstuffs, and other ne:f>ssitdes tha]t did not have to be imported, and on which therefore, no duty had to he paid. The House adioumed at L p m. Continuing his speech when the House resumed at 2.30 p.m., Mr McDougall urged the development or secondary industries, and consumption wherever possible of New Zealand product and raw materials, as a means of providing employrnent. He expressed vigorous opposition to freetrade. which he said would lower the standard of life. Mr McDougall stated. that a universal pension of an increased amount should be provided for disabled ex-servicemen, and this should be a charge on the “wool kings” whose property they had fought to protect.

The Highways Fund. Mr A. E. Ansell (Chalmers), stated that he objected not only to the increase in the primage duty, but also to the original one per cent. duty. The Prime Minister had said that the increase would not. be passed' on to the consumer, but even if it were it was only a temporary measure. This, Mr Ansell added, reminded him of a dentist who, prior to drawing a tooth, informed his patient “You won’t fee* it, but even if you do it won’t last long.” Mr Ansell then referred to the withdrawal of the grant to the Highways Fund. He said motorists had originally asked to be taxed for two reasons: They wanted good roads, and they considered it fair that they should contribute a fair share of the burden that might otherwise fall on local bodies. There was a definite obligation on the Government tu honour the agreement that had beex. reached between County authorities, the Government and motorists. It had been stated that the Highways Board had not been of much value to the country, but Mr Ansell assured the House that it had given splendid service. The Governments grant to tht Highways Fund had been based on the average amount the Department had been spending on public roads. Originally the mileage of roads to be maintained was 6000, but now it had increased to 10,000 miles, and it appeared that the. Government was refusing to accept any liability for this task. Under the old conditions motorists contributions to the public funds amounted to a comparatively small amount, paid through Customs duties. Last year contributions from all sources cost motorists £1,200,000. Motorists, recognising the seriousness of unemployment position, had laised no objection last year to expenditure from the highways fund of £220,000 to keep men at work. A very large proportion of this was work which would not have been essential for some year: and conditions under which it was carried out were certainly not economical. The Government was prepared to subsidise relief works in the cities, but instead of subsidising work made possible by motorists’ contributions, it '.as going to take the money away from the Highways fund. The Government was wrong in disregarding its responsibility for at least a portion of the expenditure on main highways. H* believed there was a legal claim for such assistance, and if there was not there was at least a moral claim. Sir Joseph Ward had stated that the resources of the Main Highways Fund were more than ample to meet present requirements, but on the other hand, the Minister of Public Works had stated that the funds of the Highways Board w’ere all necessary Mr Ansell added that as motorist's taxation increased, and as motorists made more use of the roads, counties had a right to increased subsidies. There was no truth in a statement that the Highways Board had con-, siderable resources; that it was saving- and had not been spending grants that it had received. Timber and Coal. Mr J. O’Brien (Westland), complained that the Government was not making sufficient progress in dealing with problems of the day, and added: “If it doesn’t make a start soon, we are to get tired of waiting, and so are the public going to get tired.” Mr O’Brien stated that had a little more attention been paid to some indusries of the country, there would not llave. been an unemployment problem. The timber

resources of the country were not fully realised. Accessibility had increased as a result of modern inventions, and by the time the timber which the Forestry Department had estimated was available was cut out, it would be possible to grow six new forests. The country, in fact, had never-failing resources, and there was no need to endanger its scenic features. Foreign timber was being dumped by a regular steamer service. Each steamer landed timber that would keep three New Zealand mills busy (and fifty men employed) tor twelve months. The coal industry should be more intensively developed, and if it were given its full scope it would be capable of employing another 24.000 men. Mr O’Brien repeated his allegations of unfairness on the part of a section of the Press, and said that while there had been much criticism oi his suggestion to institute a State newspaper, he thought the time would come when such a journal would be produced. Complaints that had been voiced in the House had already had a good effect, for never before had members received such fair treatment from the local newspapers as they had during the past three or four days. There had been references to long reports that would have to be published of each speech, but he considered a competent condenser could adequately cover every point raised by each member in an hour and a halfs speech in one column of spice. Coal and Fruit Industries. Mr C. G. Black (Motueka», said he had been interested in Mr O’Brien’s reference to the coal industry, particularly as coal w’as admitted duty free to this country. He advocated encouragement of this industry, and also referred to the possibilities of the fruit industry, including canned fruits. His speech was interrupted by the rising of the House at 5.30 p.m. till 2.30 p.m. on Tuesday.