KEEP ABREAST OF PARLIAMENT

Cue (NZERS), Issue 14, 31 December 1944, Page 3

KEEP ABREAST OF PARLIAMENT

IMPORTANT legislation was before the House of Representatives when the second session of the 1944 Parliament met, and the debating was brisk and lively. Main interest centred around the presentation of the Budget in which was involved the Government’s stabilisation policy. Family benefits, housing, hydro-electricity, and the minimum wage also figured on the order paper. STABILISATION POLICY: The most interesting feature of stabilisation was the question of the disposal of additional payments recently made by Great Britain in respect of New Zealand exports. The British Government, in considera-

tion of the increasing divergence of New Zealand’s export and import price levels, has agreed: — (a) to make a lump sum payment to N.Z. of Li 000,000 to cover the past four years of the wartime export produce contracts. (b) to pay N.Z. a further lump sum of L 4,000,000 a year for the next four years. Neither of the lump sum payments related to any product and are for "general * national purposes." (c) an increase in the prices of dairy produce and meat exported by New Zealand to Britain. These payments remedy a difference in prices whereby New Zealand, bound

by the terms of earlier contracts, was at a disadvantage.

Long negotiations took place between the Stabilisation Commission and representatives of the Dairy Board and the Meat Board as to how much of the increases of prices should actually be paid to producers and how much should remain in stabilisation accounts, to be held for the benefit of the industry at some future date. In the case of butter and cheese, agreement between the government and the producers was reached by the payment of an additional 2.12 d. per lb. butterfat to cover increases in dairy costs. y The debate on the matter of disburse-, ment of cash payments to producers reached an issue towards the close of October. Adjustments to the schedule of meat prices for the 1944-45 season were announced just before the House adjourned. The schedule gives approximate increases on lamb of 0.56. per lb. on wethers of 0.56. per lb., on ewes 0.3 d. per lb., on quarter beef 6/- per 100 lb. There is also a new rate on F.A.Q. cows, for which there has been no schedule previously. . Due regard was given .to the need to increase the incentive to higher weights. The question of the buying schedules for pig meat has been dealt with by the committee appointed by the Meat Board and the Stabilisation \Commission, and prices have been increased by 0.256. per lb. overall.

THE BUDGET The Financial Statement presented little that was unexpected. There is no projected increase in taxation. The proposed war expenditure for the coming year is Li 33,000,000 as against Li 52,900,000 last year. War expenditure will be financed from taxation to the extent of 5 00,000; from Reciprocal Lease-Lend to L25,ooo,ooo; by L 6,200,000 to be .borrowed from the Consolidated’ Fund, and L 9,300,000 to be borrowed from the United Kingdom under the Memorandum of Security agreement. The balance will be composed chiefly -> of a further Victory Loan of L 40,000,000. This was opened to sub-

scnption on August 28, the amount required this year being, L 3 l e ,J than for last year. At the closing date the Victory Loan was oversubscribed bv 1-278,437. The final figure subscribed was L40,672,i04. No taxation increases or alterations are provided for. New Zealand paid L 63,311,965 in direct taxes oh income including war and social security charges in the financial year 1943-44-. This figure represented L3B 13s. 3d; per head of population, and- 62.8 per cent, of taxation from all sources. The total Public Debt outstanding at March 31, 194,1. was Ls 66, 494,000. FAMILY BENEFIT : If The principal Social' Security measure was the increasing of the family benefit from 7s. 6d. to ios. per week for each child and the raising of the allowable income for such benefits from L 5 *s. to L 5 ios. This accords with the policy of stabilisation. It was found that the value of these benefits relative to the maximum of earnings had deteriorated. . It is anticipated that Social Security will result in an expenditure. this year of Li 8,857,000 (an increase of Li,200,000 on last year). HOUSING In keeping with the Government's desire to meet the housing shortage, the sum of L 3,500,000 was set aside for the State housing projects. ' ty ; The serious shortages in electric power in New Zealand in the past years have focussed public attention on" the manner in which the Government is striving to meet the situation. The allocation of hydro-electricity was a substantial item in the Budget, the sum of L 3,200, 000 being reserved under this heading. VARIATION OF WAGE _SCALES, Power has been given to the Arbitration Court to make wage variations sue as the increase of the minimum wageAfter June 16, the limit for male adult workers and female workers of 5 5 s and L 3 respectively, was cancelled, ow the Arbitration Court has a power to vary wages, always wi gard to the stabilisation p° toy regulations.