BUDGET SPEECHES.

Star (Christchurch), Issue 16584, 17 November 1921, Page 4

BUDGET SPEECHES.

CONTINUING the debate, (Ffr Pfzss Association/) WELLINGTON. November l'U In the House of Representatives tins afternoon. Mr Witty resumed the debate .on 1 he Financial Statement. He declared that New Zealand was passing through a strenuous time. It was the duty of everyone to assist the Government in rounding the corner. I During prosperous times the Government and private individuals were Spending freely, and no one was prepared for the sudden jolt that had come upon us lie. therefore, proposed to show where money could he saved. In ti*e first place, the housing scheme had been a failure, nothing had been done. Mr Massey : Is a thousand houses nothing? Mr Witty: A thousand houses have not been finished. Mr Massey: Yes. they have. Mr Witty expressed pleasure at the information, but thought that the m.qriey given to the butter subsidy would have been better spent on building more houses for the people. Great savings could be made by the Education Department standardising plans of j schools. He read a letter from a. Canterbury critic of railway management. contending that there was much red tape and many foolish regulations whicsb should he abolished. Neither had the railway “cut" been successful. Lt saved comparatively little.and had driven much of the traffic on to the roads. The public service dismissals had not reduced overhead charges, but. , if the Government wanted to effect public, service reform it should sack the Public Service Commissioners, because they were not satisfying the public service and had not put a stop to wire-pulling. They simply put round men in square holes. The method of handling our produce in England and the defence system of the Dominion came in for scathing criticism. In conclusion. he- said that it was incumbent on Parliament to try to reduce taxation and lighten the burden, falling on those under its care. Mr Sullivan referred to the insistent demand for economy, which came from all sections of the community, whether Friend or foe of the Government. He criticised remarks made by members of the Farmers' Union to this end concerning the public service as a gross slander on a. useful and importantbody, though the Government should explain the increase in staffing arid expenditure in Departments in the last financial year. TTo thought the eriti cism came with T»ery bad grace from a section of the community which, during the war, benefited more than apy other section. He asserted, that the effect, of bind tax rebate gave a substantial concession to wealthy landowners in town and country. . What was the necessity for this remission, when the Prime Minister was most optimistic. concerning next season's products? The speaker concluded by advocating the abolition of the Legislative Council as a means of reducing public expenditure, it being generally agreed tha-t a second Chamber was quite unnecessary in this country. Mr Mitchell advocated sending the Budget estimates to a select committee for a report by experts, who might be able to suggest various means of keeping down public expenditure. Travelling expenses were mounting up in f ho Departments. The Departments had been stuffed with people who were not necessary. Rents and telegrams were absorbing a. great deal too much money, i.ud unnecessary shifting of public servants was also absurdly To meet the position created, by extravagant expenditure, our only solution was to raise taxation, but extra money taken from ’the people was not going to increase the comfort or conveniences of the people. We did not build houses or make roads; we simply put the money into governmental expenditure. Much money had been sunk in purchasing land at too high price, and the Ministry of Lands should hare brought down some of these properties considerably, in order to give the soldiers a chance. There were many of these properties for which no financier would gjvc more than 50 per cent of the Government value. Tf travelling and other overhead charges wore out down there would he no need to touch the JowersfrlarUd men at all. Unfortunately no policy war. being observed by the Government.. Married women whose husbands were at work were retained in the Public Service, while men with families were being discharged, just after they had observed (he two minutes’ silence in honour of the men who fell m the war. They’ were told on the one hand that no further advances were to be made to soldiers, while on the other hand they made a confession of £170.000 to landowners. To him there seemed to he a. good deal of mockery about this, which he resented verv much. Grouping of Departments and Government shipping concerns were advocated as public reforms, and in conclusion the speaker urged that if wages were to be cut down all round it should be done in such a wav as to conserve the interests of the dan with a big family. They could not consistently increase the burdens of the poor man, as the Budget was doing, vet at the same time cut down wages. Our ooctrine should be one of hope and hard work, but of good wages. 1 lie Hon .1. A. Uanan counselled moderate optimism in the present crisis. Tim ship was not going to sink, but a i the same time to sav that we would recover from all our difficulties in two or three years was to chase a shadow and entertain a delusion. In good years we lived at a high speed, but that bad come to an end, and when Sir Francis Bell had charge of the public purse he frankly said that the purse was empty. Then wc were on the brink of panic, and the men who nearly brought that panic about, hut for certain strong statements by the Prime Minister and others, were tile men who enjoved similar profits during the fat years, their agitation being in their own selfish interests. He deprecated the concession in land tnsationjjjcmtaptling that taxation should be used to burst up big estates, and to increase the production of tho country. The effect of the financial difficulties was not yet fuillv apparent. Xeit year would he even more difficult, and he hoped that when tho Prime Minister replied be would keep nothing back as to his anxiety concerning next year's finance. To meet this hr looked for a. policy in the Budget, but found none. There were certain superficial expedients suggested, hut there was no definite courageous policy which would bring the country back to stability and its wonted prosperity Mr Atmore described the remission of land tax as a grave mistake, a. needless gift to wealthy men. The, Dominion could not do w-ith a penny less revenue Who. then, was to pay the share of the men. who got £l6O rebate, if not people who were not sufficiently .well off to get the rebate on Land tax ? The tariff brought down hr the Government was full of anomalies. Especially did he object, to the taxes on tea and tobacco, both of which were necessaries. largely used by the working classes. The housing scheme of the rinvarnment was being overloaded hr coat nS administration. every house

costing -Clooo, being handicapped Ms administrative expenses amount-in*-* to £lSo. Discussing the marketing of our Produce m England lie sugafcted sending Sir Thomas Mackenzie a| produce Commissioner, with nothin* else ,° b : lt attend to the sale of th» New Zealand produce, some of whiefc both literally -and figuratively stank in the nostrils of the people, owing to *bameu. mishandling. A mistake had been made in buying land for soldiers on values based on the high price® then r unrig for produce. T wen tv-five, per cent would have to be written off these i alues. and the sooner the mistake was recognised tVm better, for it was cruel going on piling up liabilities upon men who fought, for the country. Mr B right, defended the land purchases for soldiers. The Government, could do nothing else. because the soldiers wanted to go on the land, and (lie people were behind them. He admitted that mistakes had been made, and that the soldiers would have to be put. right, but at the same time it was ungenerous to accuse the Government oi buying land to do lor the soldiers what everyone said should be done. The Government had been charged with being the friends of wealthy landowners, but if so they had shown their affection by taxing the land- \ owners in a way they never had been I taxed before He defended the importations of coST and coal control on the ground that women and children were shivering in the cold when the miners of New Zealand were not producing sufficient coal to meejt local requirements, and coal had to be procured from abroad when it could not be got in tho Dominion. Many of the difficulties the Government was experiencing in connection with The housing scheme were entirely beyond the control of the Government. AY ages bad gone up. material had increased in price, and for these increases no fair-minded man could hold the Government responsible. Economy in the public service could only be carried out on the basis of awards of the Arbitration Court, and other honourable understandings arrived at. lie could not see bow the wages of Civil Servants could be reduced while tho cost of living remained as it did at present. Discussing the tariff proposals, bo favoured some moderate protection for industries, but in such articles as we could not produce he urged people to purchase only British made goods. During the war Britain poured millions into the Dominion in payment for our produce, and it was only a fair thing that where wo could reciprocate we should Air Seddon declared that members on the Opposition benches had been endeavouring to find a policy in the Budget. but without success, and no speaker on the Government side had been able to enlighten them. Mr Massey: You have been blocking me for a week. /Mr Seddon : Why should we. have to wait for the Premier to speak? Surely if there was a policy in the Budget some other member would have been able to discover it. Continuing, ho urged ns a desirable policy reciprocal Customs arrangements with Australia, Canada and South Africa. Afr Sykes defended the. large laud owners from the charges levelled against them. During the war they played the game and were not deserving the censures passed upon them by many speakers in the debate. He justified retrenchment in the public sen ice, because during the war positions vacated by soldiers were taken by others. Now- the soldiers had returned there was not room for both, and he was glad to know that the PostmasterGeneral. at least, was going to stand by the soldier and see that he was protected. He urged private- employers to do likewiseAir Harris declared against an allround reduction of ten per cent in Civil fecrvim salaries,' as the- high salaried man could Totter stand such reduction than ’the man with a small salary. He favoured the adoption of a sliding scale of reduction. He asked the Premier when replying to define the Government’s policy regarding future trade with Germany. The- adjournment of tho debate was moved by Mr R. AV. Smith (AVaimarino) and the House rose at. 11.35 pm.