BUDGET DEBATE.

Star (Christchurch), Volume XLIV, Issue 193, 15 August 1931, Page 23

BUDGET DEBATE.

Members Discuss Financial Statement. Per Press Association. WELLINGTON, August 14. Continuing the Budget debate in the House of Representatives Mr Barnard {Labour, Napier), discussing Sir Otto Niemeyer’s report, agreed that the gold standard was not essential to the internal working of a country. The establishment of a reserve bank seemed to be a proposal in the right direction. Parliament, however, .would render itself impotent if it sanctioned such a change in the banking system as w’ould place the finances of New Zealand, in the hands of private persons, even with the mild restrictions suggested by Sir Otto Niemeyer. The Hon W. Downie Stewart: Don’t the profits go to the public in his scheme? Air Barnard: Not necessarily. Mr Barnard said that what was required was managed currency in the interests of the people with the national welfare as the dominant consideration Referring to the extra 20 per cent surtax on incomes, he urged that it should be imposed on insurance companies on the basis of clear profits and not merely nominal profits. Under the Budget proposals, the tax that would be paid by the A.AI.P. would in two years jump from over £17,000 to over £65,000. The basis of taxation was unfair to those with policies in life insurance companies, and struck at the very foundation of life insurance. He said he considered the new tobacco duties would be unfair to New Zealand manufacturers and growers. Cigarettes had been left practically as before, also manufactured pipe tobacco from abroad. Government’s Efforts Approved. Mr Lysnar (Independent, Gisborne) said the difficulties which the Government was facing were very largely due to the extravagances of a former administration. The present Government could, not be accused of extravagances. bistory had been one of economies. Mr Endean: Do you differentiate between this Government and the Ward Government ? Air Lysnar: Yes. I would not have supported the Ward Government. Air Lysnar said the Government had done its very best to meet the situation and was entitled to a fair trial. Nobody liked the taxation' proposals, Out they were absolutely necessary. He expressed the opinion that it would be a calamity to the Dominion if the Reform Party came back into power. Referring to Air Endean’s statement that Reform had warned the Government of the coming depression, Air Lysnar said: It was no credit to Reform to predict the storm when they worked it up themselves.” Mr Munns {United, Roskill) criticised the time payment system. He said people were paying in this way for everything, and in the event of their commitments becoming too heavy the goods often had to be taken back at a loss, with the result that the remainder of the consumers had to pay for the defaulter. He suggested that in cases where those receiving advances to workers were finding it difficult to meet their obligations the department might consider the extension of mortgages from 36§ years to 45 years. If this suggestion were adopted the Government would save its own security and save the worker’s home. A Maiden Speech. Air W. W. Alassey (Reform, Hauraki) making his maiden speech intimated that he did not intend to speak at any length. His impression during the debate had been that many speeches could have been curtailed with decided advantage to the country. This was particularly so during the present depression, when short useful speeches would do more good than long ones containing much repetition. He criticised the proposed new transport regulations and said the Minister seemed to be taking powers which should belong to the counties and boroughs which had to look after the roads. He considered it would be a mistake to permit the heaviest types of passenger and goods vehicles to travel at faster speeds, and it also would be a mistake to increase the maximum weight that might be carried. The ultimate result would be more damage to the roads, more accidents and possibly more loss of life. The Government should, during the present depression, endeavour to keep down the demands on country ratepayers. For that reason he urged the Government to review the regulation which embodied a tendency to call on local bodies to render roads fit for new loads and speeds, rather than continuing the previous policy of suiting loads and speeds to the roads. The debate was interrupted by the rising of the House at 5.30 p.m. till 2.30 p.m. on Tuesday.