THE COST OF LIVING

Dominion, Volume 14, Issue 29, 29 October 1920, Page 8

THE COST OF LIVING

MORE PROPOSED REMEDIES

PRIME MINISTER ON THE PROSPECTS

DEBATE ON IMPREST BILL

When the. Imprest Supply Bill was iijtroduciid in the House last night there was some discussion upon the problem ot tfcci cost of living. .» Mr. R. JTCtillum (Wairati) protested against the decision of tho Government to postpone till next session 111); revision of the Customs tariff. I.ct local industrifs be protected, lie said, but not at tho espenso of tho consumer in this country. Mr. it'C'allum claimed that one of the chief causes of the high cost of living was the high/ duty 'charged on imported woollen goods. "Ll>t us meet ill February and deal with the question of tariff revision," the member proposed. Mr. J). U. Sullivan (Avon) claimod that during the present session nothing had be,en done to lighten the burden of tho' cost of living. "You're only making political capital," interposed the Prime Minister. "Put up a practical suggestion," said Mr, D. Jones (Kaiapoi). Mr, Sullivan said that practical suggestions had been made by his side of the House —

A member: Confiscation. Another member: Anything but work,

The Government, Mr. Sullivan continued, was going to Hud ,£600,000 as a butter subsidv. The money was coming out of; bbt-i Consolidated Fund, and therefore very largely out of the pockets of the workers, who constituted the greater part of the population. Part of tlit> amount would bo derived from tlie Customs duties. He thought with the member for Wairau, that tho time for an overhaul of tlio Customs tariff was the iprfßent. He would removb the duty on tea, the primage, duty, the duty on tobacco, and tho duty on imported household articles in common use. Combinations of shipping said Mr. R. Masters. (Stratford) were lareelv instrumental in keeping up the cost of-living. The member proceeded to R ive instances of the piVat rise in f) eight chains since 1913. The total rise so far a? this country was con ft ablv represented something like JMO.OOO. 000 per annum. Th> Dominions of he EmpKoldd unite to fight ttn shipping combines. The count'r/ *m .lookin* fm cheap maninvs from Ivauru. but it would not get them unless the Government could'obtain shipping at reason'"t'lie Prime that thb Government had an offer for manures from Muru at very.low ini£. -Now the need was for more crushing 'M'Combs (I,ytteUon| snid that he 'proposed. in /espouse to the requc-t of the member for to f ward practical suggestions for the ie duction of the-cost of living. T statistic? for the first five ° urosent financial year showed that tne V'lKtoms Tpvcnue for tho whole year more Jikelv to be •:£G,000.000 forecasted by the PrimeJH i=ter. Ho proposed the fn l '"^ l nn raent to the motion 'Hint tbe House ?o into Committee of Supply: . That in tho opinipn of the House this session should not terminate without some definite effort being made to c 1 eck tho rapidly increasing cost, of linn* CD ny reducing the Tetnil price of .butter to Is. 9d. per pound while securing to tbe butter producer tho full market value of his product by means of an equalisation fund to be, created by a levy of j per Lit. addition. to the and fax and an increase in death duties, (2) by remitting the tax on tea; (3) by the removal of tho primage d">yarticles of common necessity; W »y a reduction or remission of tho ad valorem duties cm articles of common necessity the like of which are not manufactured in the Dominion; (5) to introduce drastic legislation to stop profiteering in this couiitry " The "Prime Minister. .

I'Ae Prime Minister asked whether the membor for Lyttelton knew that the death duties hatl been • increased by .£300,000, at the very least, only, ft few days previously. Did _ he know that there had been a considerable increase in the land tax, not only for tho purpose of bringing in more revenue but also for the purpose of putting land on the'market?. The income tax had also been increased, l'he country could not bo made prosperous, by increases in taxation. The present burden was as much as the country could carry at the moment. Tho expenditure from the Consolidated Fund for the last six months was ".£13,000,000. If tho Governmenfc wis not very careful tho country would land in financial disaster, and that at 110 very distant period. It could not go on adding to (he burden of taxation with the present prospects of falling markets. It had been pointed out that the Customs revenue this year bad exceeded expectations. Well, if there had not been that incrense, he did not know what .would have happened before the'end of the present financial year. At the present moment shipping was boms held up at Home on account of the coal strike, and no one .knew how long that was going to last. Ho could not see his way to ask Parliament to reduce taxation this year. But there would be a clause in the Appropriation Bill'to enable him, as Treasurer, to reduce taxation, if possible, at the end of the present financial year. He did not know whether a reduction would he possible. It would all depend on the state of trade between now and March 31 Mr. G. Witty (Riccarton) asked in what ways the reduction, if any, would be made.

Mr. Massey replied that the first proposal was to take off the primage duty. He would not say more at the moment. The. House had witnessed the unique spectacle of two members of the Labour Party asking for. reduction of the duty on articles that could be produced in this country—oil boots and woollen goods. Jf there was a fall in the price of dairy produce corresponding with the fall that had taken-place in- the price of wool, it would not be possible to maintain in this country the rates of wages that were being paid just now. Therefore, it behoved Parliament to do everything It «n«ld to safeguard the interests of tho producers, to encourage production, and to see that the produce of the country was sent to the biwt markets. By tinleering' with the Customs duties 'a great deal of harm might, be done to those whom the Labour Party claimed to represent. There, were indications to-day of a fall in the price of potatoes. ISootn and leather were going to be cheaper, on account of the reduction in the price of hides. 'Hie bottom had dropped out of the hides mnrket. According <o a cabled report there was Hjso a fall in the prion of tea. Probably 'there was in a lower cost of living than the country had /seen for Koine years past. All were pleased to see a fall in the price of articles consumed by the many, but what nobody in the country wanted to see was a fall in the price of the produce that New Zealand exported. Mr. Massey added that the Govern ment could not afford to abandon any revenue. He could reduce taxation if ho could reduce public' expenditure.! The Government was paying over .£1,000.000 a yoar to keep down the price of butter and bread to the consumers. Would, th" Labour members agree to the reduction of taxation by. that amount? Members: No. Mr. Massey quoted official statistics I', show that the increases in the cost of living had been less in New Zealand than iu any other.country. The cost of living had been raised 1» the Labour agitators, said Mr. V. H. Potter (Roskill). The loud-mouthed malcontents who had reduced production at the coal mines and disorganised industry were the men who had done must lo push up prices. After some further debate .Mr. M'Cotnbs amendment went lo a division, and wa< defoaled by ,'l9 votes to JB.

The Bill was passed,

ORCHARD AMENDMENT BILL

The Orchard and Garden Diseasoi Amendment Bill provides that the Government may make regulations authorisine tlie sale in New Zealand of fruit affected by apple-scab or pear-senb.