HOUSE RESUMES THE DEBATE ON BUDGET

Wanganui Chronicle, 6 September 1950, Page 6

HOUSE RESUMES THE

DEBATE ON BUDGET

PARLIAMENT BLDGS, Last Night (PA).—The debate on thp financial statement was resumed in the House of Representatives today and again at the evening sitting. During the evening the Minister of External Affairs (Mr. Doidge) took opportunity to review the world situation. The Government should regard the railways as a steel highway and make contributions to it in the same manner as money was allocated to main highways, said Mr. Hackett <Opp., Grey Lynn) when the debate was continued today. The earnings of the railways had always fluctuated, said Mr. Hackett. He did not agree with the idea that workers’ fares should be increased in order to overcome the railways’ deficit and considered that in the light of modern trends the railways, in a few years, would be making an annual loss of between £4.000,000 and £5.000,000. The fact could not be overlooked that with air and road services only heavy goods would eventually be left for the railways to handle. Mr Halstead (Govt., Tamaki), said there had been excellent reaction to the Budget throughout the country. The people were confident that the nation’s finances were in the right hands. The Budget had conceded more than any other in the last five years and it was a great achievement that rationing and many forms of control had been removed. Import control had been abolished on about one third of our imports, but there still remained in the system a necessity for the businessman to trade in import licences. It was a mystery to a great number of people how some who had no connection with importing had managed to secure licences. There had been an easing of building controls. Mr. Anderton (Opp., Auckland Central): And an easing of building, too! Mr. Halstead said that the attitude of the British Ministry of Food in refusing to allow for increased costs in prices to be paid for New Zealand dairy produce, had been a bitter disappointment to the dairy industry leaders.

SOCIALISTS PICNIC.

The Socialists were having a picnic in Britain today and they had not met the New Zealand negotiators fairly and squarely. He was certain that there was “something of political vindictiveness” about the whole situation. An Opposition voice: Nonsense. Mr. McLagan (Opp., Riccarton): What a mind.* Mr. Halstead said New Zealand was looking forward to the day when the United Kingdom had a more sympathetic Government He said it was unfortunate that world prices had sky-rocketed in recent months, causing some embarrassment to the Government’s policy of preventing increases in the cost of living. Increases in prices of rubber, Reheat, copper, steel, and other commodities had not been bargained for but the Government would do its utmost to prevent or minimise the resultant increases in internal prices. It was regrettable that of our estimated export income of £200,000,000 this year, more could not be allocated for capital imports. New Zealand was a young country which, instead of paying off debts like a mature creditor country, should be welcoming sterling investment for power development and other public works, as well as for private enterprises which would benefit the whole community. Many potential industries remained no more than a . dream, merely because a certain timidity had developed as the result of 14 years of Socialist rule and the day of the ‘ long shot” investment seemed to be past. Mr. Halstead praised the recent Reserve Bank Amendment Act, which gives the bank’s directors power to alter the Reserve Bank ratio without adhering to the 25 per cent .minimum. Mr. Nash (Opp., Hutt): Have they changed it yet? Mr. Holland: Not as far as I know. Mr. Halstead said the Government s plans depended for success on more production, but that would be forthcoming under the incentives plan the Government had. The people were working harder since the Government changed, especially farmers, who “started working harder the week after the election.” Less hours worked per man in New Zealand last year than since the relevant statistics were first kept in 1926, but the Government, by incentives and not by threats, would find ways of achieving an overall increase.

“BLUE BABY” BUDGET

Mr. Keeling (Opp.. Gisborne) described the Budget as the Prime Minister’s “first blue baby” and he wondered if it were going to be taken to Wall Street for treatment. He deplored the anti-British speeches he had heard from Government members and said he would not envy the Minister of External Affairs going to London and having to face up to what had been said about the United Kingdom Government. Mr. Keeling said he did not believe in a segregation policy for the Maori people. They should be mixed with Europeans. He was not against the provision of hostels in cities for young Maori people, but he would sooner see the already established hostels take in a proportion of Maori youths or girls. Discussing State house building, he said that every contractor knew that not one more State house would be built after the present contracts expired. Mr. Sim (Govt., Waikato) said th> Budget gave encouragement for more land to be brought into production, which would benefit the whole country. The Labour Government had done more to hamper and restrict the producer than any other administration. All it did was to attack and obstruct producers. How then Could more food be produced for the underfed peoples of tho world, so often re- < ferred to by the member for Hutt What was needed in the coif.try today was greater effort on the part of everybody. There was only one answer, a higher standard of living, and that was increased effort bv al!. Mr. Sim said most of the undeveloped land was Crown or Maori land. Little of it was in private hands. Much of the hilly country needed heavier American equipment for its proper development. The Opposition might call him anti-British for saying this, but the fact remained that British tractors were not adequate for some types of land development. Mr. Sim advocated better use of land in the development stage for the breeding of young stock. The debate was interrupted by the tea adjournment. When the debate was resumed in the evening. Mr. Sim said that young people of the country were responsible for returning the National Government to power. The Labour government had lost the confidence of 'he young people. It had been in office for so long and after altering the electoral boundaries thought it