N.Z. PARLIAMENT.

Waikato Times, Volume 106, Issue 17802, 29 August 1929, Page 9

N.Z. PARLIAMENT.

FINANCIAL DEBATE. PROBLEM OF UNEMPLOYMENT. BUDGET OP BROKEN PROMISES. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. Mr C. H. Chapman (Wellington North) quoted figures to show the seriousness of unemployment and added that well over £1,000,000 was ■being spent annually on relief works. The question arose whether that money was being spent wisely or whether it could not have been expended on productive work, instead of on merely relief measures. lie thought the greatest contributing factor in the creation of unemployment was the fact that nothing had been done to provide other work for those people who had been displaced as a result of the advance of science and invention. Not a Permanent Remedy. 4

One reason of the drift to the cities was the use of machinery on farms. A policy of “back to the land” would improve the position temporarily, but it would not bo a permanent remedy. Complete reorganisation of industry would be necessary before the problem could be solved. The Budget contained no proposals to meet the situation that had not been tried unsuccessfully before. Until a more satisfactory system of applying capital to the material of the country had been evolved there could be little permanent progress, lie described the primage duty as a most distasteful method of obtaining revenue, and suggested as an alternative the amendment of the Customs regulations in such a way that in addition to obtaining revenue encouragement would be afforded secondary industries. He believed protection to the motor-body building industry would provide employment in New Zealand for thousands of men.

Mr 11. G. Dickie (Patea) described the Budget as “one of broken promises, a Budget of borrowing and additional- taxation.” He considered more than a fair share of the additional primage duty would- fall on the farmer, who would have to pay it on his fertiliser, corn sacks, woolpacks, fcnciifg wire, implements, and, in fact, everything he required, except his live stock. Settlers Walk Off. Referring to land settlement, Mr Dickie said the present Government had been in office eight months. It had placed a few men on the land, and of these two had walked off. Furthermore, these were men who had been carefully selected, lie was afraid Hie manner in which the Government was endeavouring to grapple with this problem would cost the country a lot of money. He was prepared to see the country lose some money on land settlement, but lie wanted to see the scheme conducted on a sound basis. It had been .stated that the taxation proposals would not affect small farmers, but Mr Lfickie. said these proposals would deal a severe blow to land values, and the direct consequence of that fall in values would be that small farmers would lose all their equity in their land, lie hoped that when the taxation proposals were brought down the present rate of mortgage exemption would be allowed to remain. An Independent View. Mr J. T. Hogan (Rangitikei) said members had criticised the proposals to increase taxation, but was not that a reasonable course to adopt when members from all sides of the House were asking for increases in pensions and additional expenditure in other directions. lie welcomed the Prime Minister's proposals to break up large estates and enable people to get back on the land. lie had seen houses vacated and schools closed in parts of the country as a result of land aggregation, and if the Budget proposal resulted in these homes being again occupied and the schools reopened they would be. of great benefit t-o the country. r The debate was adjourned until tomorrow.