LAND FDR SOLDIERS.

Star (Christchurch), Issue 16635, 18 January 1922, Page 10

LAND FDR SOLDIERS.

THE GOVERNMENT’S PURCHASES. ! A LIVELY INTERLUDE. {From Ocm CoitRESPO2<rDENT.] WELLINGTON, January 17. Opposition members and the Prime Minister were prominent in a lively discussion over the methods of purchasing soldiers’ land, when a Bill authorising further borrowing for discharged soldiers’ settlement was introduced to-day. Mr M'Combs spoke of the Government’s failure to completely redeem its promises after it had expended millions in high-priced lands. To this Mr Massey made retort that if Nov/ Zealand had done as little for the soldiers as had the*member for Lyttelton it would have made a poor showing in the great warDr Thacker deplored the way in which tho Government had dissipated the large surpluses which Sir Joseph Ward, as Finance Minister in the National Government, had managed to get out of the profiteers. It had all gone, squandered in high-priced lands, some of which the Government had had on its hands since 1917. Mr Massey* replied that while it was quite true that fifteen millions of surplus were accumulated it was untrue to say that they had been squandered His Government came to the conclusion when it became necessary to provide for returned soldiers that no better use could be made of this money. They had to choose between using the sur - pluses or borrowing at a high rate of interest in London. He would defend this course anywhere as a r perfectly safe and sound transaction. He was assured by the Valuer-General that although some lands were bought at high prices they would fetch to-day more than they cost. Mr Wilford suggested that the Prime Minister had made these statements under the impulse of excitement. Did he imagine there was anyone else in New Zealand who believed it would have been necessary to pay the present high rate of interest for a loan for soldier settlement. When the necessity first arose, when the fifteen millions were appropriated, the rate of interest was nothing like 6J per cent. Mr Massey: I say it was. Mr Wilford : It is to-day, but it was not at the time, and the member for Christchurch East is absolutely correct The present financial difficulties of this country are due to the way in which the Government went about buying land for soldiers. If they had taken the land compulsorily in 1916 and got this House to approve, giving the landowners war bonds in payment, they would not have drained every pocket in i New Zealand of every pound in it. Mr Potter : Why did you not suggest it P Mr Wilford declared that the pages of il Hansard ” were full of his speeches on these lines, until the Prime Minister had complained that he was sick of hearing the same old story, but he would hear it a lot more yet, and the people of New Zealand would be educated up to realising that the serious financial position of the Government to-day was due to the Government's reckless squandering of public money, and utter disregard of safe and sound methods of purchasing land for soldiers. Mr Massey, as the proceedings were in committee, had another opportunity of replying. He emphatically declared that he was not surprised at having to again correct the Leader of the Opposition. He had talked of borrowing at a low rate in London at a time when, as a matter of fact, New Zealand could not borrow there at all. It owed the Imperial Government twenty-live millions, which the Imperial authorities borrowed on New Zealand’s account. It was clear that Mr Wilford know nothing about finance. Probably not half a dozen members in tho House knew lessMr Wilford : It is clear you cannot reply without being personal. Mr Massey: The hon gentleman, while he is Leader of file Opposition, has the responsibility of setting a good example. Tlie Prime Minister added that the money secured from the Imperial authorities was at the rate of 5£ . per cent. He considered the investment of surpluses in soldiers’ lands a particularly good one. Mr Wilford : Nobody thinks so but you. .*ir Massey : What was done was done in good faith. Mr Wilford : And ignoranceMr Massey: The hon gentleman slio*ild know about ignorance.

Mr Wilford : There you are again. (Laughter.) The Chairman of Committees interposed to ask that there should be no interruption of speakers, and Mr Massey concluded in a calmer atmosphere, suggesting that nothing like fifteen millions was expended on lands for soldiers, very large sums being spent on providing homes and setting men up in business. He would be able to show that evening, when the Retrenchment Bill came before the House, what the Government was capable of doing to improve the finances of the Dominion. Dr Thacker declared that he resented the Prime Minister’s crude criticism that he was out of notes. Immediately the session was over he would go into Mr Massey’s electorate to tell the people what he thought about their member. (Laughter.) Mr M’Combs, in criticism of the lugh prices paid for land, suggested that if the valuation figure was a proper one on which to pay taxation it was a fair price at which to sell. Why had the Government refrained from giving information about these purchases and valuations ?