BUDGET DEBATE

Wanganui Chronicle, Volume 80, Issue 249, 20 October 1937, Page 8

BUDGET DEBATE

MINISTER’S SPEECH GUARANTEED PRICE POLICY ATTACK ON THE PRESS [ Per Press Association. J WELLINGTON, Oct. 19. The debate on tile Financial Statement was continued in the House of Representatives this afternoon by the Hon. J. A. Lee, who said that the opponents of the Government had said that the guaranteed price policy 01 the Government was dangerous because it menaced the existing order of things. The guaranteed price gave the farmers for the iirst time a ueiinite return on a piecework basis lor a definite quantity and quality of goods. They had been asked what would happen, he said, if overseas prices fell, out he doubted if anything of the kind would occur, in any case, said Mr Lee, deflation or inflation was not wanted. The Socialist wished to build up a new economy and expand the well-being and leisure of the people. People starved during the depression because there were too many goods. He wished to see an extension of the guaranteed price system, which was a stimulus to production.

Mr Lee proceeded to criticise the Press of the Dominion, stating that private control of the Press excluded every section of the community to express itself. He quoted from an editorial in a Wellington paper, the purport of which, he said, was an argument that people just reaching the age of 21 years were not lit to vote. An Auckland paper, too, he said, a few years ago had advocated the disfranchisement of all civil servants. That was as dangerous to democracy as the doctrines of Hitler and Mussolini. Every person should have the right to express his viewpoint, not only over the air but by the written word. The newspapers to-day were not controlled by people interested in news and views but by an aggregation of people representing financial interests. Something wouid have to be done some day towards the provision of a newspaper in every centre throughout the medium of which the worth while majority of people would be able to express their views. He quoted several instances in the Press of what he described as misrepresentation, distortion and suppression which, he said, occurred nearly every day to every one of them. All sections of the community were entitled to express their opinions, but the Government was entitled not to have its statements misrepresented and distorted all the time.

Referring to slum clearance in New Zealand, Mr Lee said the slum problem could not be cleared up by State advances but only by direct Government intervention, but they must build sufficient homes to which the people could go before they started with the demolition of the slums. He went on to deal with the Government’s housing policy, and stated that as the production technique of houses produced in the Dominion improved, so wouid the quality of the houses which were being built. It would take 50 to 60 years completely to rebuild New Zealand, but he expressed pleasure at the increased interest shown by the local authorities in building houses and stated that in the course of a year they would see a rapid alteration in the housing problem. Maori Spending Denied. Mr E. T. Tirikatene (Govt., Southern Maori) said that under the present Government the Maori was experiencing a new feeling of hope. It was only through the Labour Government that the Maori housing schemehad been started. It was not because the Maori had “blued” all his money that he came to be in a condition of want to-day. It was because the administration of past Governments had deprived the Maori of nearly everything he owned. The Maori appreciated the fact that he enjoyed full rights of citizenship in his own country, and be did not agree with the criticisms which had been levelled at the broadcasting service, but he would be pleased to see more provision being made in this direction for the use of Maori talent.

Mr E. L. Cullen (Govt., Hawke’s Bay), said the Government's housing scheme for Maoris would prove of great benefit to Maoris both in the cities and in the country. He suggested, however, that a commencement should be made in providing houses for aged Maoris who required them, and that if the Minister of Housing took over control of Maori housing it would relieve Native Affairs of a heavy burden. Mr Cullen also drew attention to lhe multiplicity of control in native affairs.

The debate was interrupted by the adjournment at 5.30 p.m. The House resumed at 7.30 p.m., when the Minister of Railways, Hon. D. G. Sullivan, continued the debate >n the Financial Statement. He stated that the Government had no intention of taking control of any chain stores in the Dominion nor did it intend to engage in the reselling business in connection with chemists’ supplies. With regard to the opening of an overseas firm controlling a chain of stores for selling chemists’ supplies in the Dominion, he intimated that he considered an effective compromise would be reached which would be satisfactory to the retail chemists as well as to the oversea interests which he had mentioned. He contended that the licensing system under the Industrial Efficiency Act had been used wisely and effectively in connection with both the rennet and fishing industries and the Government’s scheme of governing wheat, flour and bread was one of the best in the world and was giving complete satisfaction. Hon. A. Hamilton: To the taxpayers ? Mr Sullivan: Yes, to the taxpayers, too. I am personally happy about it and everyone in the industries mentioned, too, is also happy about it. Mr Sullivan said that the cost of living in 1937, after the Labour Government had been in officer for two /ears was lower than it was for the oeriod of twelve years preceding 1931 and the purchasing power of the power of the worker to-day was 9 per cent, higher than in 1935. Referring to New Zealand industries the Minister said the Government intended to give them adequate

protection. Not all the industries in | New Zealand were detrimentally affected by the severe competition from overseas. The majority were in a healthy position. He also stated that the increased cost of materials being experienced here was being experienced to a similar degree by countries overseas and that the present cost of running the railways compared more than favourably with costs during normal years before the depression. Socialisation Plans Mr. R. A. Wright (Independent, Wellington Suburbs) said that the leading plank of the Government platform was to socialise the means of production, distribution and exchange and the rumours which arose as a result of statements by irresponsible members of the Labour Party were doing a great deal of harm to their own party and also to the country. The Government, he said, had claimed to enjoy the support of a large majority of the people of the Dominion, but he would point out that it had been returned to office on a mino’ity vote of only 46 per cent, of the people Mr. Wright referred to a statement by Dr. McMillan advocating a State-owned Press, stating that if effect were given to the honourable member’s suggestion it would give a moncpcly which would be the reverse of beneficial in its effect. If they interfered with the Press in the way suggested it would lay the foundation for tyranny. A free Press, he contended, was the bulwark of liberty. Mr. A. S. Richards (Government, Rcskill): Stanley Baldwin did not say that. Mr. Wright: But you must remember that Stanley Baldwin was not al-

ways right. He continued that these attacks on the Press emanated from the Prime Minister himself. When he spoke he should have remembered that he was head of the Government and some of his statements on the Press were very alarming indeed. He referred to a recent statement by Mr. Savage which appeared in a Labour journal attacking the Press, stating that the statement had contained a hidden threat and hinting that it was the Prime Minister's opinion that some of the privileges of the Press should be taken away from it.

A Labour interjection: So they should be. Mr. Wright continued that these statements by the Prime Minister had so stimulated the Director of Commercial Broadcasting that he had made a statement over the air attacking the Press and the Minister of Education had had to rebuke both him and the editor of the Labour journal referred to. Mr. Wright said he admired the Minister for delivering that rebuke. The Trading Banks Mr. Wright said that the Prime Minister’s criticism of the trading banks had created uneasiness. Mr. Savage was reported to have said that the powers of the banks must be wiped out. That was a mischievous statement, said Mr. Wright. It was true that the Prime Minister had modified the statement but he challenged him to show where the banks were not rendering an efficient service. A Government member: Everybody knows it. Referring to the Government’s intended use of public credit, Mr. Wright said he was satisfied that it would mean an irredeemable issue of paper money which could not be limited in a democracy. The Budget made provision for a huge expenditure, the effect of which would be to introduce a fictitious prosperity and an increase in land values. Mr. A. G. Hultquist (Government, Bay of Plenty) said the policy of the Government was deflation and stabil-

isation at an economic point and to return to the people the goods and services that the previous Government had taken from them. Never in his electorate had he heard an unkind word or an insulting remark passed about the Government’s policy and he thought if the Government could not ■;tand the Opposition's criticism it would not be very effective. In fact, he could assure the Opposition that its criticism was falling on deaf ears, both in the case of the Government itself and of the country as a whole. He appealed to the Government for increased financial support for counties to make good flood damage and similar works and contended that unpaid native rates should be paid out of the Consolidated Fund. If free grants could not be given in the

directions he had indicated, he suggested that the money should be supplied from the unemployment funds. He believed there was a splendid future for the East Coast if they faced up to the native problem there and gave increased grants to the counties from the Public Works funds for necessary roads and bridges. He also advocated the more extensive electrical reticulation of the East Coast districts.

The debate was interrupted by the adjournment at 10.30 p.m