PARLIAMENT.

Wanganui Chronicle, Volume LX, Issue 17062, 15 August 1917, Page 5

PARLIAMENT.

HOUSE OF REPRESENTATIVES.

(Per Press Association.) WELLINGTON, Aug. 14. The House of Representatives met aft 2.30 p.m.

COST OF LIVING. Replying to Mr Craigie, the Premier said he had no objection to set up » committee to consider the question of the cost of living. It would be very useful in giving teose concerned i-ume idea of the difficulties in the way of dealing with the problem.

• THE WAR LOAN. fair Joseph Ward laid on the t-ahi* or the House the prospectus of the War •Loan. He explained the new arrangements made in connection with the Post Utbce, winch would enable anyone of slender means to participate m the loan. In addition to the connected investment adopted in connection with the last loan, investments might lie taken up to £500 at five per cent, for periods of five or ten years the interest being payable >ialf- 3 early. Thxa latter form of investment would not be tree of income tax, oecaise if so many people who ought to take up lar* e pn T™ at t* per ce? K would ™*h the Post Ofhce to get the benefit of the h'gner rate, while tiiose who wece on<y able to take up to £500 would not be subject to income taxi'n any case. He was also arranging ohat those who took up connected investments in the k«t loan should b e enabled to change to the new form m five cr ten years if shay so desired.

Replying to Dr. Ve.vmsn, Sir Jo^h ward said the banirs hate agr.^d tc lend money to elieais to enable ♦ i -ti to take up loan dobei.tures at a ratnot exceeding s*. The first paa-t of the loan, he thought, would last until Feb. ruary. In that case, the second part would probably be raised about March.

FIRST READINGS. Tim ?t?lV€l^ Bo? l i; ds + Act .Amendment mil (Hon. Russell), the New Zealand Inscribed Stock Bill (Sir Joseph Ward) were introduced by Governo/s Message and read a first time.

. PREFERENTIAL DUTIES. Sir Joseph Ward introduced by resolution an amendment of the Customs Act imposing further preferential surtax duties on goods not being the produce or manufacture of British Domi. mons. He explained that the alterations would remove certain anomalies m connection with the taxation of silks which were pointed out during the del bate on the Budget. The new duties would a|so' bring in additional revenue as well as giv,e further preference to Britain.

Mr Poole considered that the importation- of certain articles of luxury should be prohibited altogether, as in Australia. =

Messrs Payne and Webb objected Vfcc any increase of Customs duties, whict was a strange way of reducing the cost of living. : The resolutions were agreed to\

THE TEA TAX. Sir Joseph Ward introduced an artendmeht of the Grade Commerce Act, to prevent the holders of tea prior to the imposition of th c new duty raisin* the price to consumers. If any such increase had taken place, the' consumer would be entitled to a'refund. The j Kill was treated as a matter of uro-- ' ency and passed through all stages. !

MARINE DEPARTMENT. The Hon. G. W. Russell tabled the report of the Marine Department, the discussion thereon lasting until 5.30.

THE BUDGET. Mr Wilkinson resumed the debate on the Budget after the dinner adjournment. He said the outstanding features of the Budget were the substantial increase of the National Debt and the record surplus^ both of which were the result of war conditions. He topk exception to the proposal to enforce contributions to the war loan, being certain that it would create hardship. It was a power greater than Parliament1 should give to any Government. He hoped it would be blocked. He then proceeded to analyse the taxation pro-' posals of the Budget, particularly as they affect small farmers, whose farms were mortgaged, his conclusion being that th,e small farmer was being heavily taxed and the large estates were being let off comparatively lightly, which was in inverse ratio to what it should be. The effect of this would be to drive people^ off the land, and concentrate them in the towns. Town conditions were easier than in the country, and consequently there was no inducement to stay on the farms, where there was plenty of hard work and small profits. Conscription of wealth in the shape of capital was impossible. What was most needed was to encourage everyone to' produce as much as possible, and the principle governing our taxation should be that we tax th© spending, not th« earning of money.

Mr Hornsby said the first great principles laid down by both leaders when the National Cabinet took office was the reduction of the cost of living, but no reduction had taken place. It was no answer to say that things were dearer in, Australia, where the Government interfered. The faetw as that we had an abundance of food in tyie' Dominion, but the people could not get it except by the grace of profiteers,' and it was time the people realised the fact. When the Minister of Agriculture went to Australia to buy wheat there were men in the Dominion holding, on to wheat, with the result that both bread and flour were dearer than they had any right to be, and he wanted" to know what the Board of Trade was doing about it. Butter was selling at; Is 8d per pound, but he knew a lame quantity of first-class butter was for. sale at a shilling per pound. • ' 4 Mr Massey interjected: If that is so the Government will take the lot at that price.l Mr Hornsby declared that he wasprepared to bring the bargain off, but he wanted to know what the Board of Trade was doing about it. It was asleep and snoring. He commented on the action of wool companies raising the price of yarn out of which comforts for soldiers were made by devoted women. They paid big dividends, but when the operatives asked for an increase in wages tliev were denounced as disloyal to come at such a time and. make such a demand. He described theoperations of the Meat Trust, on which, he declared, the Premier said two years ago he had his eye; but what had been done ? Nothing! Why had the powers of the Commercial Trusts Act'not been invoked to cope with this menace to the people's interests? Mr. Witty demanded that every rejected man of the First Division be re-examined before the Second Division are called up. He disapproved of the suggestion to send boys of nineteen to the front. Mr. Massey said there never was any such suggestion. Mr. Witty said it was a feeler, such, as should not be made. The debate was adjourned en the motion of Mr. Mander. COST OF LIVING. Mr. Mosspy moved to pet up a stveofa! comm.il.tfe to consider the cost of- living — Asrreed to. The House rose at 11 o'clock. /'"