NO-CONFIDENCE DEBATE

Wairarapa Age, 23 August 1929, Page 5

NO-CONFIDENCE DEBATE

PRIME MINISTER REPLIES TO HIS CRITICS. — MANUFACTURE OF DEFICIT DENIED. TAX INCREASES DEFENDED. (Bv Telegraph.—" The Age” Special.) WELLINGTON, August 22. Members of the House of Representatives wore an air of expectancy when they assembled to-day, and the galleries were well filled in anticipation of the resumption of the no-confidence debate. The first speaker was the Prime Minister (the Right Hon. Sir J. G. Ward) who said he would deal with the Leader of the Opposition (the Right Hon. J. G. Coates), Mr. David Jones and Mr. A. Hamilton, while some other members would come In for consideration later. (Laughter.) Sir Joseph denied that the estimates and accounts had been framed so as to cause a deficit. The late Government must take the responsibility for the estimates they had handed over to their successors. He denied that the interest payment of £156,000 which figured in the deficit should have been a charge on this year’s (finances. He had wanted to hold over the payment, but the Government had been advised by its London brokers to make the payment in March and he had been obliged to place the amount in the Estimates. The suggestion that the deficit was created with a view to damaging the Reform Party, Sir Joseph declared, was unworthy of the Leader of the Opposition. If he had adopted the advice of the Opposition, and let the position remain as it was, what satisfaction would it have been to him or the country if there had been a double deficit at the end of the year! INCREASES IN TAXATION. It had been said there was no need for extra taxation, because, the three months ’ figures showed an increase, but no reference had been made to increased expenditure. Over £1,570,000 of additional revenue was required this year to balance accounts, so how could it be said there was no need for increased taxation? Additional revenue was required as follows:—To meet the recent deficit, £577,000; increased expenditure almost wholly for interest and other rigid items, £730,000; allowance for supplementarv estimates and contingencies, £260,000. The total that had to be provided for iby March 31 next was therefore about £1,570,000. Under present conditions the whole of that amount would not be yielded by ordinary revenue, even if there were increases. Hence the additional taxation was necessary. It had been stated that the revenue had shown an increase of nearly half a million for the first three months of the year, but it was a well-known fact that the first quarter's figures were a very unreliable guide to the revenue for the year. REDUCING A SHORTAGE. There were some geniuses on the Reform side that had been found in the realm of finance, but if their ideas were adopted the country’s position would be seriously affected. When he assumed office he had had the Estimates reviewed, but increases that had to be made were due to the’ actions of his predecessors. He had reduced the shortage in accounts from £1,200,000 down to £950,000. He had not extended services in any way. By, means of a further review thin was reduced to £700,000. In order to balance the Budget he had to find extra revenue by means of additional taxation. PUBLIC TRUST OFFICE. The Leader of the Opposition had apparently not made himself aware of the financial position of the Public Trust Office or its relation to the Consolidated Fund, or he would not have made the statement he did in regard to an alleged raid on the finances of the office. The Reform Government had not made the use it might have done of the provisions of the Act governing the office. Sir Joseph said he considered that the time had come for a return to the Consolidated Fund of part of the profits earned by the Public Trust Office.

THE HIGHWAYS FUND. Dealing with Main Highways, the Prime Minister said that it must not be overlooked that the financial position generally and in regard to the highways in particular had altered considerably since 1922, and the imposition of additional indirect taxation, specially earmarked for highways, had provided ample funds for the Main Highways Revenue Account.

Sir Joseph said that it was not proposed to grant any further transfers from the Public Works Fund to the Main Highways Fund. That, however, did not necessarily mean that the total allocation of loan money to highways was to be reduced by £200,000 as appeared to be the impression in some quarters. Arranging matters in that way would mean that, in accordance with the usual practice, in the matter of revenue-earning accounts, this interest on highways loans would be recovered from highways revenue. Mr Coates: “Is that retrospective?” Sir Joseph replied that this would apply only to this year. In view of the financial position generally he thought that there could not be any doubt that the Government was justified in saving the Consolidated Fund in that way instead of increased geenral taxation to obtain £85,000 more revenue. THE LABOUR ATTITUDE. WILL NOT SUPPORT REFORM AMENDMENT. (By Telegraph.—“ The Age” Special.) WELLINGTON, August 22. Making it quite clear that the Labour Party would not vote for Mr. Coates’s amendment, Mr. H. E. Holland (Leader of the Labour Party) stated in the House to-night that whatever else might be left Jn doubt regarding the general election, one fact stood out clearly and that was that the people of New Zealand had made up their minds that the Reform Government had to go. The people would hold it against the Labour Party if they used their votes to put the Reform Party back on the Treasury Benches. The Labour Party would take its own course to meet every situation as it arose. He added: “I am prepared to give my vote against the present Government at any time when the Labour Party could replace the United Party on the Treasury benches.” It was clear, Mr. Holland said, that Mr. Coateses amendment was a party gesture to the big landowner,

and there was a Worm on the hook to catch the small farmer. DIVISION TAKEN. EASY WIN FOR GOVERNMENT. (By Telegraph.—“ The Age” Special.) WELLINGTON, August 22. A division on the. Government’s first no-confidence test was taken to-night, the result being an easy win for the Government, which secured all the available votes excepting the Reform. Mr. W. D. Lysnar, who terms himself a Reform Independent, voted for the amendment, while the Independents present, Messrs. J. T. Hogan, W. J. Polson, H. W. Rushworth and C. A. Wilkinson supported the Government. The result was: For the amendment, 24; against, 48. On the Prime Minister’s motion the House adjourned, and the main debate will be continued on Friday morning.