DOMINION'S PROBLEMS

Wanganui Chronicle, Volume 74, Issue 196, 20 August 1931, Page 8

DOMINION'S PROBLEMS

BUDGET DEBATE CONTINUES NEED FOR STRONG GOVERNMENT [ Per Press Association. ] WELLINGTON, Aug. 19. In the House of Representatives today the Budget debate was resumed by Mr T. IX Burnett, who said that the State, with the best of intentions, was making a big mistake in postponing the payment of interest and rates, as the system was striking a blow at the business morality of the community. There should, instead, be a readjustment of rents and interest on a basis of the reduced prices for primary produce. If that were done there would be a reduction of from 33 to 50 per cent, in retals, and money would not be so hopelessly lost as it was under the system of postponements. The State would, as the outcome of the depression, have to insist on compulsory thrift so that reserves could be built up.

Mr E. J. Howard (Labour, Christchurch South) said that the Labour Party had been accused of keeping the Government in office for 18 months. He pointed out that the Labour Party had supported the Government until it had departed from the policy on which it had been elected.

Mr Howard complained of the delay in developing the Tung oil industry in the North. The Government, instead of going ahead with the industry on suitable blocks of land in its

possession, was leaving the whole thing to private euterprise. He insisted that there was ample scope for profitably absorbing a large number of people in the areas “above the frost line.” It was stated that 100,000 acres’ worth of Tung oil trees would bring in £3,000,000 worth of oil. Mr Wilkinson's Criticism. Mr C. A. Wilkinson (Independent, Egmont), inquired what was the reason for the increase of £25,000 in the naval defence vote. He said that one ship would be sufficient for the Dominion. Two ships would not be able to put up a fight by themselves. He criticising the continuation of the work on the South Island Main Trunk railway, suggesting that it would be one of the biggest disasters that this country had ever taken on. He attacked the retention of the wheat duties on the ground that it had the effect of keeping up the price of bread. Mr Wilkinson said he believed that the country desired a fusion of parties for the purpose of facing the national difficulties. Mr Jones, when speaking at Eltham, had expressed the opinion that there would be no United Party after the next election, and it seemed that this was the mainspring of the Reform Party’s reason for repeatedly rejecting the overtures. The Reform Party, in its folly, evidently believed that it would have a majority after the next election. Hon. J. G. Cobbe said there had been considerable question about the advisability of utilising reserves. He contended that the purpose of building up reserves was to enable any concern to meet an emergency, and in his opinion the present was an occasion ■when the Government was justified in drawing upon its reserves. Replying to Mr Wilkinson’s criticism of the cruisers of the New Zealand squadron, the Minister said that the vessels were the correct type for the South Pacific, and one had only to look at the map to see the necessity for having these two vessels to patrol the waters. Referring to the wheat duties, he said that while be did not support the high duties, he recognised that some duty was necessary, otherwise thousands of growers in the South Island would go out of business. Mr Cobbe denied that Sir Otto Niemeyer had come to New Zealand as a dictator, but had come to tender advice for which he had been asked. Most Serious Crisis. Mr A. M. Samuel (Reform, Thames) said he thought that the present was the most serious crisis New Zealand had ever'known, and not only New Zealand but the whole world. It had been predicted that if we continued along the present lines there would be an inevitable breakdown of civilisation, but he did not think that the European countries would allow this to take place. A way out of the crisis could be found by the cancellation of war debts, and he thought that civilisation would be forced to meet and find some satisfactory basis of agreement. It also was necessarv to stabilise the currency. He considered that each country would have to face its problems along the lines of national unity, and for that reason he thought that a concrete invitation should be sent to all parties so that the best brains could be brought to bear on all the problems, enabling the country to speak with one voice. The debate was interrupted by the rising of the House at 10.30 p.m.