PARLIAMENT

Wanganui Chronicle, Volume 79, Issue 227, 27 September 1935, Page 8

PARLIAMENT

FINANCIAL DEBATE MEMBERS’ OPINIONS L Per Press Association. ] WELLINGTON, Sept. 2G. The Financial Debate was resumed in the House of Representatives to-day by Mr J. A. Lee (Lab., Grey Lynn), who, dealing with unemployment, said that the House had been told that the number of unemployed was decreasing, but he believed the figures quoted did not include the number who were debarred from registering. Despite the predictions regarding the n turn of prosperity 7000 more persons had left New Zealand during the last three years than had arrived in it. There mar have been a bright spot or two in the Budget restoration of pensions, but ho was of opinion that later on the “burnt out” soldiers would have to be treated in the same wav as the man totally disabled at the war, and given a full pension. Mr H. McL. Campbell (Gov., Hawke’s Bay) congratulated the Government on its very satisfactory Budget. He thought that as Britain was New Zealand ’s best customer, some attempt should be made to steady imports from Australia, which took practically nothing from New Zealand. Hp thought that mon on sustenance should be given every encouragement to get off it and help themselves. They should be examined only everv month or *wo, not every two or three days. Hp considered that the time for a revaluation of Crown tenants’ land was overdue, and the men who had struggled along given some relief. Millions for Housing Mr. F. W. Schramm (Labour, Auckland East; said the most important problems before the country to-day were housing, unemployment, and the questions of national superannuation, Health insurance and pensions. There was a great ueuu ror a housing scheme in New Zealand.’ Many pe.cpie were being evicted from houses, ana the private landlord could not be expected to carry tenants on his back, as he had rates and other payments to meet. The Government, in conjunction with the city councils and other local bo-dies, should adopt a proper housing scheme at once, and he Hoped that the matter would receive more attention tlian mere mention in the Budget. If the Government spent millions of pounds it would be money well spent. He hoped that the 7* per cent, restoration would not affect tae police as adversely as the last restoration. Bpeaking generally, the police force was overworked. It was an excellent force that compared favourably with any force in the world. It was about time that more police were .appointed and constables, detectives and sergeants given more leisure time. He hoped tne Government, before the session was ended, would briag down a measure providing that school children should be given half a pint of milk daily. Mr. A. Harris (Government, Waite* rnataj thought the people would ap preciate the absence of window dress ing from the Budget. He contended that few people would think that it had been framed with the object of catching votes. He would have liked to see some substantial reduction in taxation as was promised last year. He predicted that the year would end with a surplus of £1,000,000, as treasurers had a happy knack of overestimating expenditure and underestimating revenue. He thought the Minister of Finance would have been justified in adopting a bolder course with regard Lo the remission of taxation, and suggested that relief should be given by the abolition of primage duty on British goods. New Zealand was probably tne highest taxed country in the world. There was no reason why it should be so. A greater reduction in the unemployment tax might have been expected.

Mr 11. T. Armstrong (Lab-, Christchurch East) said that as Britain was turning her attention to agriculture, New Zealand should endeavour to increase the consumption of her own produce. The value of New Zealand manufactured goods was £32,000,000 and the value of dairy products was £20,000,000, so that New Zealand had reached a stage when the manufacturing industry was of more importance and was producing more than the dairy industry. The total production of New Zealand was valued at £98,800,000, of which £41,000,000 was exported. The total number of persons earning a living from primary industries was 115,500, or only 20 per cent, of the population. Mr Forbes’ Speech Hon. G. W. Forbes said it was thought that definite signs of success would be hailed with satisfaction by all members of the House, but that did not seem to be so with the Opposition. The Opposition seemed to take the view that everything that had happened was the fault o? khe Government, and nothing that occurred outside seemed to have, anything to do with it- He contended that the reduction or restoration of wages had no connection at all with the rise or fall in the number of unemployed. He reviewed the effects of the depression, and said that the fall in the national incomp was very considerable and very seiious. It fell from £150,000,000 in 1928-29 to £98,000,000 in 1931-32, and that was bound to cause great distress. In the same period exports foil from £56,000.000 to £34,000000, yet some members said that, would have no effect on the Dominion. The improvement in farm prices was immediately reflected throughout the country. The Government hail been charged with having broken contracts and done other drastic things. The income of Britain during the depression 'had dropped .15 per cent., Canada 4 6 per cent., Australia 23 per cent.. South Africa 21 per cent., and New Zealand 35 per cent. Something had to be done to come to the assistance of the prim ary producers. He outlined the steps the Government tojk in the way of reduction of interest, rents and other things, and asked if, in view of the fall in income by 35 per cent., they were excessive, lie thought that the action taken was very modernte. The reduction in wages had enabled many employers to retain the services of employees who otherwise have had to be put off, and he compared the rp ductions New Zealand had made with those of other countries. Every country in the world had had to deal with its currency, ami the Government had been told that, by raising the exchange

it had forfeited all reputation in regard to finance. He claimed that the stability of New Zealand finances had been achieved, and that counted a great deal in Britain. New Zealand’s prosperity was closely linked with that of Britain, and it was pleasing to see that that prosperity was returning and that Britain was able to show a substantial surplus and restore many reductions that had been made. The fault with Labour Governments was that they were unable to withstand pressure from organisations outside Parliament, and the finances consequently suffered. He claimed that the Governmentrecord in regard to prudent finance was equal to that of any Government that ever sat on the Treasury benches. Labour had said that what the Government was doing was to secure votes but what was Labour doing? Every time the Government gave a new benefit labour’s bid went a little higher. He contended that if Labour’s policy were attempted to be carried out the country would soon be in a state of bankruptcy. Referring to Hon. W. Downie Stewart’s speech at Dunedin earlier in the week, Mr. Forbes said he never knew that he or the pledge he was alleged to have given, was the cause of Mr. Stewart’s leaving the Cabinet. Mr. Stewart had never told him that.

Mr. Forbes proceeded to outline the reasons for raising the exchange, and said that two months before the rate was raised he had told a deputation that the Government did not intend to raise the exchange, but an investigation was made, and it was then found that the best method to deal with the situation was to raise the excharge. At the time he had made the statement to the deputation it was his firm opinion that the exchange would not be raised, but he gave no pledge or tied himself to any deputation. Had he given a pledge he would have adhered to it. The debate was adjourned and the House rose at 11.55 p.m. The Chateau Affair.

Air. F. Langstone (Labour, Waimarino) asked tne Minister in Charge uf thy Tourist Department whether he Das seen the report headed * * Serious Affray at the Chateau,” and wnetner he will inform the iluuse as to the nature of the fracas tnat occurred on a .Sunday night wherein tire manager of the Chateau was seriously injured and had to be taken to the Taumarunui Hospital; and why the Police Department had not taken action in this matter.

Air. Hamilton replied: “The inquiries being made by the police are not yet complete. Inioriuation received up lo the present indicates that the occurrence nas been greatly exaggerated. ’ ’

ibe Rev. C. Carr (labour, ’Umaru) asked the Minister c»l Education Whether he proposes tu remove, this session, the bin on married women teachers.

Air. Smith replied; “The employ meat ot married women in the btaie primary ana post piiuiary schools of the Dominion m in the discretion of th i ap i .'iiiii,ng authorities, and it is not intcjiu'. l tv introduce legislation to modify the powers which they severally jkisfes under existing Acts and Air. 11. Atmore (Independent, Nelsen, asked tbi Ali.lister of Education whether Le v .i. fix an earn date lor icc I.auvai.ua \ ommittec tu hear evidence I'ruui tne New EeaiauJ Education Jnslia.lL and the School Committees’ Ass. i .ation in support of the admission or children lo Slate primary sei.ocL win n taiy reach the age ol Mr. Smith replied: “The Education Cuinii'i’jm .L-.ve already arianged to m.jet or C.-’i/'ti 1 fur ike purpose of l iking evidence i'iul ig lu ltrs matte ’ In a notice of question to the. Prime Minister (the Kt. lien. j. \V. Forties) Air. A. J. .Stall worthy (Independent, Eden) a.-'ked if the Government would take steps to appoint, a Royal Commission to investigate and report on the policy, incidence, and administration of the, high rate of exchange, and also its ■effect on the Ottawa Agreement and overseas and internal trade. Mr. Stallworthy proceeded to suggest an order of reference, but objection was raised by the Minister of Finance (the lit. Hon. J G. Coates), and Air. Speaker ruled that the notice of question wag not allowable, Hp s<<«fceste<l