DEBATE OPENS

Waikato Times, Volume 127, Issue 21156, 4 July 1940, Page 8

DEBATE OPENS

BUDGET EXPENDITURE CIVIL VOTES CRITICISED COMPULSORY LOAN QUESTION MR LEE MOVES AMENDMENT (By Telegraph.—Special to Times) WELLINGTON, Wednesday The debate on the financial statement presented last Thursday night was opened in the House of Representatives to-night by the Leader of the Opposition, the Hon. A. Hamilton. He was followed by the Prime Minister, the Hon. P. Fraser, and the only other speaker was Mr J. A. Lee (Democratic Labour—Grey Lynn), who had not finished his address when the House rose at 10.30 o’clock until to-morrow. Mr Hamilton said the Government was asking for nearly £100,000,000, the largest amount ever sought from the people of New Zealand. No one could shirk an equitable sacrifice. Referring to the compulsory loan proposal, Mr Hamilton said that full details should have been given to avoid confusion and misunderstanding. He pointed out that an excess profits tax had been introduced in 1916, but had been dropped the following year as it had proved inequitable. The Budget did not indicate on what basis this tax was to be levied and until that was known it was very difficult for people to make their plans. No details were given either of how it was intended to realise on overseas securities held by private people or companies, but it had been pointed out that there was a very large weight of investments against us should another country take similar action against us. This was a point that had to be considered. Cost of Living Increase Mr Hamilton siad that since 1935 the cost of living had increased by fully 20 per cent. High wages to meet high prices favoured the single man and hit the family man, whose plight to-day, with a low salary, was grave indeed. This increase in the cost of goods struck at the very heart of our ecohomy and a greater effort to prevent its cause was necessary. “No one would say we are working at our maximum effort yet,” said Mr Hamilton, when stressing the need for organisation to produce more goods. “We retain our 40-hour week and awards, and conditions are still almost on a peace-time basis, while Britain works the clock round. Quoting examples to show the increase in the cost of living, Mr Hamilton said that a suit which cost 105 s last year would now cost 120 s with the additional sales tax. Overalls which previously cost 7s lid were now 10s 6d, and overcoats costing 115 s had advanced to 1395. A boy’s tweed overcoat could have been purchased for 44s 6d last year, but it would now cost an extra 10s. Past Extravagance The Dominion was paying dearly to-day for the extravagant spending of the past five years, Mr Hamilton said. In spite of three or four very prosperous years, with export trade averaging more than £60,000,000, the overdraft at the Reserve Bank was at the limit, the sterling funds were depleted and rationed, there were huge domestic commitments and public works and sustenance were at peak. Mr Hamilton pointed out that taxation was to provide 37A per cent, and borrowing 62g per cent, of the current year’s war expenditure of £37,500,000. If the war continued for three years it would take eight years of that taxation to pay the debt. The taxation proposals were well spread and very few would feel they were not making a contribution to the war effort. Discussing the public works, Mr Hamilton said that an effort should be made to halve this vote during the year as had been done in 1915-16, when the total amount involved was £2,640,000. OTHER EXPENDITURE SUPERPHOSPHATE SUBSIDY (By Teleg-rapn.—special to Times) WELLINGTON, Wednesday A list of unauthorised expenditure items submitted by the Minister of Finance, the Hon. W. .Nash, to the House of Representatives, included amounts arising from various forms of State control established since the commencement of the war. The fruit industry account received a grant of £2784 for salaries and administrative expenses. Grants made for the same purposes to the meat industry account total £12,819. to the sundry products account £3760, and to the wool industry account £BOOO. The Internal Affairs Department made advances totalling £735 to officers of the High Commissioner’s Office in London to meet evacuation expenses. The cost of the visit of the Prime Minister, the Hon. P. Fraser, and his party to Britain was covered by a grant of £2396. The Lands Department was allocated £50,000 as a subsidy on wages paid for the settlement of unemployed workers under the small farms scheme. Tobacco growers received a grant of £1498 on account of losses on exported tobacco and the settlement of a claim for expenses. A subsidy of £81,510 was paid by the Agricultural Department on raw materials used in the manufacture of superphosphate. The broadcasting account was debited with £3312 as the cost of purchasing the Radio Record, and the Agricultural Department expended £229 as a grant to Mr David Jones, a member of the Executive Commission of Agriculture upon his retirement.