FINANCIAL DEBATE

Wanganui Chronicle, Volume 74, Issue 189, 12 August 1931, Page 8

FINANCIAL DEBATE

DISCUSSION CONTINUES REFORM AND THE BUDGET [ Per Press Association. ] WELLINGTON, Aug. 11. The financial debate was resumed in the House of Representatives by the Hon. de la who said that after the Budget had been fairly received by the Leader of the Opposition and the Hon. Dowuie Stewart, it had, been left to Mr Ansell to say that his side of the House could not accept the taxation proposals of tho Government. The Minister said he would like to know whether Mr Ansell was justified in making that statement.

Mr de la Perrelle declared that the Government was not neglecting opportunities to develop industries, and was in fact on the eve of appointing a Development of Industries Board, which would be a combination of representatives from the Departments of Scientific and Industrial Research and Industries and Commerce, together with one or two outside members capable of giving assistance. He believed that such a Board would be a great help to tho Dominion’s industries. Hon. D. Stewart: Will it be a wholetime Board? The Minister: No; a part-time Board. Hon. J. G. Coates: Will it be a paid Board? Mr de la Perrelle: No, but some members may have to receive expenses for travelling to meetings. Mr do la Perrelle added that members would be gratified to know that the trade representative who had just returned to Australia from the East had made considerable advance in increasing New Zealand’s trade with the East Indies. Mr C. E. MacMillian (Reform, Tauranga) expressed the opinion that the Prime Minister should recast tho Budget in such a way that it could be balanced without the 3 per cent, primage duty and without the taxes on tea and sugar. He thought that its taxation proposals should be referred to the Public Accounts Committee. The Government appeared to have thrown over the principle that unearned income should pay a larger proportion in taxation than earned income. He considered that more revenue should bo obtained from petrol taxation and given to the local bodies to enable them to undertake derating. It should be possible, if a determined effort were macle, to get more revenue from this quarter without any charge on users of petrol. Rebellious Member?. Mr R. McKeen (Labour, Wellington South), referring to the remarks of Messrs Ansell and MacMillan, asked whether Mr Ansell was a rebellious member of the Reform Party or was there a consensus of opinion on the Reform back benches that was not in harmony with the opinions expressed }y the leaders. Mr Samuel: You are flying a kite. Mr McKeen said he believed that when the bells rang the majority of the Reform members would find themselves in a difficult position. It was quite possible that it would be found that they had said one thing and had voted in the opposite direction.

Mr McKeon criticised the Governmen’s taxing proposals and said that they imposed an unfair burden on those with the smaller salaries.

Mr V. Ward expressed regret at the position of Canadian and New Zealand trade and said that as the last Canadian election had been fought on the butter issue it could not be expected that the Canadian Government would make a gesture. He thought that New Zealand should do that. He added that as the New Zealand elections were- so close, it would be impossible to send a Minister of the Crown to Canada, but it would be a good idea to send Sir Thomas Wilford, the High Commissioner.

Mr Ward considered it would be a good idea for New Zealand to have a State lottery on the lines of the Queens, land sweep, which would arise money for deserving purposes and would prevent a lot of money going out of the country.

Mr Ward, concluding, intimated that he would not be contesting a seat at the next general election. He hoped at some future time to re-enter the political life of the Dominion, but at the present his business did not allow him - sufficient time to do full justice to his duties as a member of Parliament. He referred to the difficulties facing the country and remarked that he could not see why there should not be a national Government with all the parties represented in proportion to their numerical ’ Parliamentary strength. Mr H. McL. Campbell criticised the Government’s railway policy and said ’ it would be better to complete at a cost ■ of approximately £1,000,000 the NapierGisborne line on which £4,000,000 al- ’ ready had been spent, than to go on with the South Island main trunk line. Internal Loans. Mr M. J. Savage urged that the bank- • ing machinery should be used in such a way that life would be put into industry. Money should be raised internally, thereby keeping our own workers employed. If we raised it abroad we would get it in the form of goods pro- ! duced by workers in other countries. Mr Savage expressed the opinion that no further time should be lost before an endeavour should be made to effect co-ordination of transport services. Supporting the view that a chain of wool scouring or carbonisation plants should be instituted throughout the Dominion, Mr Savage contended that there would be vast advantages in marketing our wool overseas in first-class order. He remarked that wool exporters wore at present paying freight, customs duties, etc. on tons of grease. New Zealand labour could be employed at. the plants he had mentioned. Mr G. C. Black declared that the time was over-ripe for the development of the mining industry of the Dominion by adopting the progressive policy ot a gold bounty. There was a premium on exported gold amounting to £l6 per cent. Australia paid a bonus of £1 per ounce. The debate was interrupted by the rising of the House at 10.30 p.m.