FINANCE BILL.

Waikato Times, Volume 109, Issue 18283, 21 March 1931, Page 7

FINANCE BILL.

DEBATE CONTINUED. URGENCY ACCORDED. TAXATION SUGGESTIONS. ' WELLINGTON. Friday. Urgency was accorded the second Pending of the Finance Bill in the House of Representatives- to-day on. the motion of the Prime Minister (Rt. Hon. G. W. Forbes). Labour members called for a division and the motion was adopted by 50 to 24. Independent members and Mr G. C. C. Black (United, MOtuoka) voted against the motion. Continuing the debate, Mr G. «• Chapman (Labour, Wellington North) suggested the United Government had accepted the support of Reform and that the price of this was the acceptance of nine-tenths of the Refoim programme, involving a reduction in the standard of living. Mr C. A. Wilkinson (Independent, Egmont) said salary cuts were inevitable, and he supported the proposal, although he could not support the Court clauses of the Bill. Although he did not agree with the principle of the Arbitration Court he considered the Bill involved the breaking of agreements. Mr F. Waite (Reform, Clutha) said the Government would have to revise the system of taxation along lines which would yield a reasonable amount in bad times. The Dominion had failed to maintain the volume of exports, and unless it could be increased the standard of living must do down, too. The farmer had to produce at a high rate of costs and sell at a low rate in the world’s markets. The Minister of Education had stated that the next move in industrial progress would be shorter hours, but Mr Waite added that the farmer at present was working 14 hours daily, and the only sweated labour in the country was among the farming community. Graduated System Urged. Mr }l. J. Savage (Labour, Auckland West) said persons paying income tax were given exemptions for insurance and dependants, but those below the Income tax minimum were now asked to bear a reduction without any exemptions. The additional revenue required should be raised by a gradu-. ated system, in accordance with ability to pay. Thero was no guarantee that the increased postal and telegraphic rates would bring in increased revenue, but they would certainly bo a brake on publicity and commercial enterprise. w- It was intended to place the rail- ' ways under a board, which would alter policy, but why could not the policy be altered by the present management? At present tho railways compared more than favourably with the competing services. He suggested that if private motor services were placed on the same footing as railways and asked to pay interest on loan money for roads, and requested to take all l'rc : ' lit taken by railways, instead of be...., able to pick out the eyes of tlie freight, the motor services would be in such circumstances that they could not live with-the railways. Mr H. G. Dickie (Reforhi, Patea) said he agreed with those members who contended that additional revenue could be derived from taxation on beer and spirits. Idic Dominion could do without many departments of State — for instance, the Town Planning and Prime Minister’s Departments. Mr W. E. Parry (Labour, Auckland Central) said the Labour Party had never denied tho necessity of balancing the Budget. It contended that the Government’s proposals would accentuate the difficulty by reducing consumption, and it urged that the necessary revenue should be obtained from thoso people obtaining the greatest share in the national pool. He asked what objection could be raised to a surtax on all incomes over £SOO a year.

Mr W. E. Barnard (Labour, Napier) agreed that an extra excise and customs duty on beer, wine and spirits would be a fairer way of obtaining tho money required to meet the deficit. There wa? a modern precedent for forcing down rents, even if one had to go to Italy for it. Mussolini had recently reduced wages and salaries in varying degrees, leaving alone those under tho poverty point. Mussolini had at the same lime taken effective steps to bring down rents and the cost of living generally. Petrol Monopoly. Mr J. S. Fletcher (Independent, Grey Lynn) said ho considered there ■•Wore better methods of getting out of the difficulties than those proposed in tho Bill, and among them he suggested fixing liquor licenses on a barrel basis instead of on a fiat rate, increased duties on beer and spirits would provide additional revenue and cio nobody any harm and do a lot of good. There was scope for saving at loast £1,000,000 per annum in the capital costs of the Public Works Department if it were thoroughly reorganised and inefilcient factors eliminated. Ho urged the Government to forco oil companies to reduce the price of petrol or, alternatively, to take over the monopoly of importing petrol in bulk. It would also be serving the country well if it imported crude oil and established ils own refining plant. By tackling the oil problem the Government could make available approximately £2,000,000 annually for the development of the resources of the country. Mr A. E. Ansell (Reform, Chalmers) said excessive taxation was one of the greatest enemies Labour had to-day. Every penny placed in that fund was taken from tho sources that fed industry. He did not say a reduction was possible at present, but ( taxation should l«e as light as possible and reduction should be tho aim. Everyone agreed that it was important that interest rates should bo brought down to a lower level. Mr K. S. Williams (Reform, Bay of Plenty) said il appeared to him ‘that the way out of the present dillleully would bo for tho people to pay cash for necessities instead of deferring payment for them and paying cash for pleasures. Mr .1. A. Nash (Reform, Palmerston) said he was not. prepared to accept tho Government's proposals unless il could be shown that lliero was going lo be a reduction in the cost of living. He complained there was no graded system of sacrifice in tlie Bill. At one o clock Mr .1. McCombs (Labour, Lyttelton) gave notice of his Intention lo move a further amendment recommending that members be assembled in muml-lablo conference Hi formulate proposals to be embodied in a Bill for (l; taxation proposals based on equality of sacrifice; (2, (Continued in. next column,)

finding ways and means for rendering assistance to farmers and ultimately relieving farmers from the risk of foreign trade. The debato was still in progress at a late hour. SECOND READING PASSED. LABOUR AMENDMENT DEFEATED.

(By Telegraph.—Press Association.) WELLINGTON, Saturday. After a lengthy' sitting, towards the end of which bells had to be rung several times for a quorum, the House of Representatives completed the second reading of the Finance Bill before daylight this morning. Continuing the debate after the telegraph oflloe had closed at 2 a.m., Labour members maintained a vigorous attack on the bill. Mr.E. J. Howard (Labour —Christchurch S.) said ho was not. pleading for members of Parliament to retain their full salary, but he considered that New Zealand was losing a lot of money because members were not paid enough to enable them to travel to all public works before voting for undertakings. Mr P. Fraser (Labour —Wellington Central) called upon the back benchers' of the Government Party to vote against the measure, suggesting that they had not had any say in the proposed legislation. The Hon. S. G. Smith, Minister of Labour: “ How do you know?” Mr Fraser: “Will the Hon. Minister say they had any?” Mr Smith: “You are fishing.” Continuing, Mr Fraser proceeded to refer to the position of Mr G. C. C. Black (United —Motueka) in ttie House, mentioning the latter had voted against the motion for urgency. Mr Fraser said be did not know officially what was Mr Black's standing in relation to the United Party. Mr H. Semple (Labour —Wellington East) : “He lias been excommunicated.” Mr Fraser said Mr Black had taken up an independent stand after severing his connection, or being severed from connection, with the United Party, The Leader of the Labour Party, Mr H. E. Holland, speaking shortly after 4 a.m., referred to tho International Labour Office and said its work was to bring up the standard of labour in the more backward countries. lie hoped the Government would live up lo the promise made by Sir Joseph Ward, to send permanont delegates to llie International Labour Conference. No matter how far wages were forced down llie Dominion could not compete on , equal terms with low-wage countries, but Hie international Labour Conference coutfl endeavour to bring the standard of wages up in these countries, and so make the position better for the primary producers of New Zealand. 'Hie division was taken at 4.30 o’clock and the amendment defeated by 4G votes to 21. Mr A. Harris (Beform —Waitemata) voted with Labour, which also received the support, of Messrs Black, .1. S. Fletcher (Independent—Grey Lynn) and 11. M. Bushworth (Gnimlry Party—Bay of Islands) . The amendment having been defeated. a further amendment, of which Mr McCombs Labour- Lyttelton) had given not ice. was not pul. The Mouse again divided on Hie second reading, which was carried by i 7 voles lo 2lk Tho House r"se at 1.33 a.m. until 4.30 o.m. on Monday.