PARLIAMENT

Wanganui Chronicle, Volume 74, Issue 192, 15 August 1931, Page 8

PARLIAMENT

YESTERDAY’S SESSION GOVERNMENT’S TAX PLANS CRITICISM FROM MEMBERS [ Per Press Association. ] WELLINGTON, Aug. 14. The House of Representatives met at 10.30. The Wanganui Church Acre Amendment (private) Bill was reported from the committee of selection without amendment. Mr Jull, resuming the Budget debate, replied to the suggestion from the Labour member that an additional £2,000,000 could be obtained from death duties. He characterised such a line of action as unsound policy because the country would actually be using up its capital to carry on the yearly allocations. Everyone who had been connected with business concerns would know wual difficult situations aro.iCwhen it became necessary to provide huge sums for death duties. New Zealand did not possess such a reservoir •,»f accumulated wealth as there was in Great Br.tain and it was therefore nut possible to dip into it with the same apparent lack of difficulty. He added that even in Britain the lack of difficulty was only apparent. Mr Jull defended the actions of the Government with regard to highways finance and said that, despite allegations by Reform members that the revenue of the Highways Board had been reduced as the result of contraventions of the Act, the actual revenue of the Board had increased by £200,000 in one year. Mr Endean said that the Reform Party had guided the ship of State through glorious seas up to the year 1928, but in that year there had been a change of Government, which had allied itself with the Labour Party. The Reform Party had warned the Government of the depression, but the warning had not been heeded in time. The payment of standard wages on relief works and other extravagances had heaped up taxation until the country was bled white. Had the Reform Party continued in office the Budget would have been a different one from the one the Prime Minister had introduced. He complained that New Zealand’s financial advisers had not taken suffi-

cient notice of Australia and quoted warnings to the Government by members of the Reform Party. The Leader of the Opposition had suggested a short session of Parliament, but the Government of the day had been so lacking in vision that it had not taken timely action. Had the Government heeded the advice there would have been a saving to the country of £1,250,000 in economies. The Government had not grappled seriously with the cost of living. If the prices of the Dominion’s products did not recover costs would have to come down in conformity. Start on the Farms. Mr Endean said that a start would have to be made on the farms, not only in regard to the wages of shearers and shepherds, but in farming operations generally. Transport charges also would have to be reduced, and there was a necessity for rationalising the industry. Mr Endean advocated taking some action in connection with the operations or the Matson shipping line in trading with New Zealand. He referred to the Jones-White Act, under which this United States line was subsidised, and said that in the very preamble of the Act itself it was stated that assistance was being given to enable United States commerce to be extended and to provide auxiliary shipping services in time of war. It must be realised that Britain had been reduced to a parity with the United States in respect of naval armament, and her personnel was actually less. Would the public of New Zealand acquiesce in sweeping our own shipping off the Pacific? British vessels were not allowed to trade between Honolulu and United States ports. He drew attention to the already unfavourable trade balance with America, and submitted that the public should assert itself and insist on American vessels trading on an equal footing with Brit-ish-owned vessels in trade between Now Zealand ports. Hon. M. Donald: How could you ston them? Mr Endean: This House would pass the necessary legislation. Mr Donald: The International shipping laws would not allow it. Mr Endean: We’d soon see about that. The House adjourned at 1 p.m. The Gold Standard. The House resumed at 2.20 p.m., when the Budget debate was continued. Mr W. E. Barnard, 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 proposad in the right direction. Parliament, however, would render itself impotent if it sanctioned such a change in the banking system as would place the finances of New Zealand in the hands of private persons, even with the mild restrictions suggested by Sir Otto. Hon. D. Stewart: Don’t profits go to the public in his scheme? Mr Barnard: Not necessarily. Mr Barnard said that what was required was a 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, Mr Barnard urged it should be imposed on insurance companies on a basis of clear profits, and not merely nominal profits. Under the Budget’s proposals the tax that would be paid by the A.M.P. would, in two rears. jump from over £17,000 to over £65.000. The basis of the taxation was unfair to those with policies in life insurance companies, and struck at the very foundation of life insurance.

Mr Barnard said he considered the new tobacco duties would bo unfair to the New Zealand manufacturers and growers. Cigarettes had been left practically as before, also manufactured pipe tobacco from abroad. Mr W. iD. Lysnar (Independent, Gisborne) said that the difficulties which the Government were facing were very largely due to Lhe extravagances of the former administration. The present Government could not be accused of extravagances. Its history had been one of economies. Mr W. P. Endean: Do you differentiate between this Government and the Ward Government? Mr Lysnar: Yes. I would not have

supported the Ward Government. He went on to say that the Government had done its very best to meet the situation and was entitled to a fair trial. Nobody liked the taxation proposals but they were absolutely neces-

Mr Lysnar expressed the opinion that it would be a calamity to the Dominion if the Reform Party came back into power. He alleged that it stood for the big commercial interests, and if the people of the Dominion were wise they would put the Reform candidates at the bottom of the poll. “I hope the Reform Party will not be able to rear up its head after the next election,” he

Referring to Mr Endcan’s statement that Reform had warned the Government of the coming depression, Mr Lysnar said: “It was no credit to Reform to predict a storm when they worked it up themselves.” Time Payment System. Mr G. C. Munns criticised the time payment system and said that 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. Continuing, Mr Munns suggested that in cases where those receiving advances to workers were finding it difficult to meet ; ir obligations,, the Department might consider an extension of mortgages from 36j to 45 years. If this suggestion were adopted the Government would save its own security and save the worker’s home.

Mr Massey (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 of the 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. Mr Massey criticised the proposed new transport regulations and said that the Minister seemed to be taking the 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 made 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 the 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.