PARLIAMENT AT WORK

Dominion, Volume 14, Issue 149, 19 March 1921, Page 8

PARLIAMENT AT WORK

4 MORTGAGES EXTENSION BILL FINANCE BILL INTRODUCED TAXATION AND ECONOMY ■» The Mortgages extension Amendment Bill was the first business of the House of Representatives yesterday. The Prime Minister said that he regarded the •xtension of the moratorium necessary to protect many people from hardship, the financial stringency being worse than in the early war years. The Bill was put through all stages and passed after a general debate. The Finance Bill, dealing with various matters, was introduced during the evening. The Prime Minister told the House that the savings the Government was effecting, including the reduction of subsidies, would amount to about £1,500,999, and he hoped to be able to make a ten per cent, reduction in the income tax payable next year. This matter would be dealt with at the later session. He would be willing to divide next year’s income tax into two instalments if the first instalment was paid earlier than the usual date. Various phases of the financial situation were discussed in the House during the evening. Mr. Massey stated that he was impressed with the idea that the country was staggering under its load of taxation. The Bill eventually was read a first time, and set down for second reading to-day. The Expiring Laws Continuance Bill, which continues the rent restriction laws until the end of this year, was read a second time. The House rose at .11.45 p.m., and will sit again at 11 a.m. to-day.

A SERIOUS CHARGE LETTERS SAID TO HAVE BEEN OPENED MINISTER PROMISES TO INVESTIGATE The leader of the Labour Party (Mr. H. E. Holland) complained, yesterday that letters addressed to him through the post were being opened. In the House he asked the Postmaster-General whether a system of censorship of letters was operating with his (the Minister's) knowledge. During the last week or so several of the letters delivered to him had borne distinct evidence of having I been opened and gummed up again.' Other persons, among them a business man. had written to him that their correspondence was being opened and closed up again. The proceeding was a most abominable one, whoever was responsible for itThe Postmaster-General (Hon. J. G. •Coatee) said he was very sorry to hear that such things had happened. So far as ths' Government was concerned, ■ nothing of the kind would be tolerated ( for one moment. When a censorship ' was required the Government would notify what the terms of the censorship Were to be, but there was no censorship, and if anything of the kind was going on it was illegal. This .was the second time he had heard the sort of complaint that Mr. Holland had made. Possibly there was some accident in the conveyance of the letters, but he did not believe that the staff were opening letters He would give instructions for a rigid Watch to be kept, and he would have investigations made. ■ SAMOAN POLICE FORCE ' • ■ 5 EX-MEMBERS’ COMPLAINTS “ BREACHES OF CONTRACT ” ALLEGED An inquiry touching the position of' those men who had returned from Samoa after serving in the police tnere was addressed to the Minister of External Affairs (Hon. E. P. Lee) yesterday by Mr. T. M. Wilford (Leader of the Opposition;, W'ho asked for an explanation of the allegations of breach ot contract by the Government with respect to them. The peculiarity of the i law in regard to a number of them was that they were not able to take action against the Crown. Seeing that Parliament was the highest court in the land he suggested that it might give authority for the appointment of a Magistrate to whom the men might address petitions In order that their cases might be m vestigated during the recess.. The Magistrate might then report to the Government whether a breach of faith had been committed or not. He had hod a letter from one of the men pointing out that there was no use presenting petitions to Parliament during the session since there would, be no committees to consider them. . • Mr. Lee said that if there was any question of breach of contract he had no objection to giving the men the right to" sue the Crown. He understood that there were petitions before the House for the consideration of these questions. Mr. Wilford: They cannot be considered. Mr. Lee: No, they cannot. . Mr. Wilford: What are these men to , do in the meantime? Mr. Lee: "I have considered these I cases'” In certain cases of hardship ne had settled the matter with the men, and got a full receipt from them-.. Ravin" got so much from him, they had apparently petitioned the House. Perhaps among their number was Mr. \\ Ilford's correspondent. Mr. Wilford said he thought the Minister was wrong in his conjecture concerning the writer of the letter he had received- The writer said he was given so manv days’ pay which he had to accept because he had to live. _ Did the Minister call that a receipt in full tor the liability? disputedTfigures MR. MITCHELL. M.P., ON GATION■®bme figures prepared by Mr. G. Mitchell M.P.. showing that the number ot holdings in various districts had decreased, were mentioned in the House, of Representatives vesterdaV. It had been i suggested that these figures proved that land was being aggregated, and the Mininter of Lands (Mr. Guthrie) denied the soundness of the deduction. The Minister said that Mr. Mitchell had taken his figures from the agricul- . tural' statistics. which were not iin to I date with regard to land holdings. Many ( rural sections converted into freeholds went out of the returns altogether. Other ■ sections went out of the returns owing to the expansions of boroughs. In one district for example, over 300 sections had gone from the rrlafrns owing to the extension of the boundaries of a borough. There was not the least doubt that subdivision was proceeding in New Zealand, and the figures that had. been quoted by Mr. Mitchell had no real hearing upon the question at all. The Minister added that he was prepared to place tut information before tho House, and would take an opportunity of doing so. | Mr. Mitchell retorted that he had prepared his figures from the official statistics which were the only statistics available. If the official figures were not accurate they should not be published.

Asked whether he had receive<l a report concerning Mhe suitability of West Coast timber for paper the Minister of Internal Affairs (Hon AV. Dowme Stewart) told the House yesterday afteraoon that he did not. know of any such jeport, but that he would investigate, and if possible make a statement on the matter before the end of the present “Assion.

SUPERANNUATED PUBLIC SERVANTS r QUESTION ABOUT THE BONUS : A NON-COMMITTAL REPLY Several questions have been asked regarding' the continuance or discontinu- ' ance of tho bonus to superannuated Public Servants, and no reply has yet been made. Mr. W. A. Veitch (Wanganui) asked the Primo Minister yesterday whether ho could give an immediate reply, as a considerable amount of anxiety existed on the matter. Mr. Massey said that it was hardly possible to deal with the matter at present. One hundred thousand pounds was a very considerable sum of money in view of recent developments. He had to be very careful ta avoid anything in the way of a debit at March 31 next year. Last year the money was payable in October. He proposed to leave it over until the business session, and then mke it into consideration. Whether it would bo possible to give the sum that was given last year or some smaller sum would then be determined. The need for the bonus was not so great as it was last year. The cost of everything in connection with living had gone down. Mr. J. M'Combs (Lyttelton) ;• The Government Statistician shows that it has gone up 72 points since last October. Mr. Massey: I know what the Government Statistician says. I have his report on my table. There are too many articles on sale to the public now for which too much is being charged. I think there is inore profiteering going , on now than there was during the war. Mr. D. G. ' Sullivan (Avon) asked whether it was to be inferred that the Prime Minister’s statement meant that' the bonus was to continue after March 31 until next session. Mr. Massey replied that he had not said so. He intended to be very careful about any promises that he might, make for the next six months. Payment of the bonus commenced last October. He was not sure wlrether there was a retrospective payment back to April 1. but hs would have that matter looked into. “ A FREE HAND ” MR. MASSEY AND LABOUR LEA DEB. Mr. H. E. Holland (Buller) yesterday asked the Prime Minister for an assurance that at the Imperial Conference he would non commit the country to a policy of pooling the resources of the various parts of the Empire in connection with the Imperial war debt. “I want the lion. gentleman to understand,” said Mr. Massey, “Jhat when I go to the Imperial Conference, I go not as a delegate. I go ys the representative of the people of New Zealand, and with a free hand, and I do not intend to make any pledges in the direction suggested by the member for Buller.” (Members: “Hear, hear.”) , ACCUMULATED SURPLUSES WHERE THEY ABE INVESTED. A statement with regal'd to the accumulated surpluses was asked for yesterday by Mr. 11. M'Callura (Wairau), who suggested that tho Primo Minister might give the information on the introduction of the Finance Bill. He wished to ' know how they were invested, and what were their earnings, stating that many L people with an expert knowledge of tho subject were eager to know about them Mt. Massey said that he would be very glad to do as had been asked. So far as the earnings Were concerned, most of tho money was, invested in land, which was returning per cent, on what, was paid for it ■ Mr. M'Cnllum: How much is left in London? Mr. Massev: We have increased the reserve fund securities from .£800.00(1 to .£2.000.000. Mr. R. M'Callum: Nothing more? Mr. Massey: Yes; a little more. NATIONAL WAR MEMORIAL SITE NOT YET SELECTED. It appears that the site of the national war memorial has not yet been selected. When Mr. G. Mitchell (Wellington floutli) yesterday asked the Minister of Defence what the present position was, Sir Heaton Rhodes replied that Cabinet had not. finally selected the site, but he thought he would be correct in stating that, the choice had been narrowed down to two sites. There was great diversity of opinion on the question of -what was the most appropriate site, in Wellington, and he thought it was better that there should be some delay than that a site which would not give satisfaction should be selected. As sooir as tho site was chosen an announcement would be made. TUBERCULAR - SOLDIERS Mr. M'Combs (Lyttelton) slated yester- , day in the House of Representatives that the soldiers discharged from sanatoria , and examined for pensions were not sat- ( isfied with the present arrangement. They j wished to be examined by experts in ■ tubercular cases, and not by the ordi- 1 nary military doctors. The Minister of Defence said ho would j give an answer if member put his , question on the Order Paper. I FIRE~BLIGHT i A BILL INTRODUCED. * Notice was given yesterday by the Min- < ister of Agriculture (Hon. W. Nosworthy) of an amendment to the Noxious Weeds 1 Act. Almost immediately afterwards Mr. T. K. Sidey (Dunedin South) asked if anything was to be done io deal with , tho fire-blight pest during tho session, k The Minister replied that the amend- ( ment, of which he had given notice, was J io effect what had been asked. | f

THE FINANCE BILL MR. MASSEY’S EXPLANATION THE PAYMENT OF INCOME TAX TEN PER CENT.'REDUCTION NEXT YEAR When the Finance Bill was introduced in the House of Representatives last night, the Prime Minister explained that the Bill made provision for a, considerable increase in unauthorised expenditure on the Railway Account. The Department was importing 2500 railway wngons, 45 engines, and some 10.000 tons of rails, and in order to pay for these goods it must increase the unauthorised expenditure. The amount was to be increased from .£150.000 to .£650.000. This was a temporary arrangement, and the Government hnd plenty of money to finance the operation.

Provision was being made for the ex-

tension of the general appropriation, for the services of the State. The 'present appropriation, made by Parliament last year, would expire on .Tune 30. He proposed to ask for an extension until October 31. Hi’ own idea was that Parliament would meet at the end of August or the beginning of September, but he had to be on the safe side, nnd there was just a bare possibility that Parliament might not be able to meet until the end of October. The ordinary unauthorised expenditure wns being increased from £150.000 to £250,090. The Bill, continued the Prime Minister. dealt with the collection of the land fax nnd income tax. The land tax would be collected as usual in November, nnd the rata would be the rate provided in the amending Act of last year, ’’’he Bill proposed no reduction, but he was going, to suggest a reduction. The legislation of last, year, in error, hnd failed to make provision for the exemption from stamp duty of declarations made for the purpose of land tax or income tax, anA this oversight was being remedied in tho Bill. The income fax. under present arrangements, was collected in February. Vari* ous suggestions had been made for giving the public an opportunity of paying by instalments. He was not objecting to an arrangement of that kind if it could be brought into operation, though if might cause, some additional cost to the Department. But if the fax was 1o be paid in instalments the first part must be paid earlier in the year. The proposal made to him recently in the last month of the financial year had been that half the tax should bo left over until next financial year. Tt would not bo possible to collect three instalments during the next financial year, so that the proposal Tenlly meant that one instalment would bo deferred perpetually.

nnd this year’s finance would be crinplod. This suggestion was quite unworkable. But if the neonlo concerned were willing to pay the first instalment, erf next venr’s lay in July or August of this year, the dale to bo arranred by Parliament. ?■* would ho miite willing to give tho matter consideration. Fie had not made any provision for such nn nrrangement dn the Bill. But nre--isinn could be in period to allow the Minister of Finance tn do' it if necossarv. The income fax

usually was collected in February, hut the Minister had the right to call upon taxpayers to pay at any time. That had in 1| : o ovrn time. Air. ’Wilford: Will the taxpayers have an option? ' Mr. Mas'ov: No. T propose to got a clause drafted allowing the Minister to provide for the payment of income tax in two instalments. Mr. Wilford: To compel them to pay or give an option? Mr. Alassey: Give an option. If fhev foel inclined to nav all at once we will ho vorv glad to take it.

Air. Jono«: AV'ill yon pay them interest on the money they give yon in advance? (Laughter.) Air. Alassey. continuing, said it had been suggested that the Government might be able to reduce taxation. He was not going to say anything definite, hecanso he did not know what next year

waft going to bring forth. The public finance was all right at present. How long it would remain nil right he could not possibly say. But the position would be known definitely by the time the House, met again. He believed that it would be possible to make a saving this year, including the savings on subsidies, of not less than £1,509,090. The total might be a. little less,.but not a great deal. AVhat he proposed to do if he could manage it was to reduce the income tax by 10 per cent. He took the income tax because both farmers and business people paid it. Air. Alalcolm: Exempt the farmers. Air. Alassey: That is a very big thing. I cannot do that all at once. A reduction of 10 per cent, on the income tax would be about £750.000.

Air. Field: No reduction on the land tax ?

Mr. Massey: No. Mr. Field: They will not have any income to pay land tax out of. Air. Massey said that members were aware that income tax was paid on returns covering the year ending March 31, and as far as the could judge there had been many substantial incomes even during the present financial year. He knew that there would be a falling off in income tax, but it would not. be ; early so great as many people imagined. What was causing the scarcity of money in New Zealand at the present time more •than anything else was tho enormous stocks of goods held in all the centres. These goods had to be paid for, i.nd many of them had not been paid for vet. The reduction of 10 per cent, would date from April 1 next. It would require legislation, but the House would be in session in time to consider the legislation. He wished to have it clearly understood that he could . not make liny definite promise, but he i ad indicated what he was aiming at doing. Mr. Massey added that the Bill contained a clause, asked for by the n ember for 'Wellington North and others, dealing with the shortening of the terms of local authorities’ loans where this seemed desirable. For some reason that he did not quite understand people were prepared to lend money for ten years, but would not lend it for twenty or twenty-five years. The clause allowed the Minister of Finance ’’o alter the term of loans already author cd. Mr J M'Combs (Lyttelton) claimed that if . tlip Government was able to make a reduction in the income tax it could certainly continue the increased allowance to superannuated public servants. He argued at some length in support of. fc's statement that tho cost of living had not gone down cl late, but had further increased- The reduction in tho subsidy on flour terved to make the cost of living higher, and a reduction in the subsidy on butter would make it higher still. The rate cf income tax was non excessive now, and the reduction promised Ixy the Government would hardly be noticed by the rnt-n with .C2OOO or .£3OOO a year. On the other hand, any reduction in the superannuation allowance was a most sei ions thing for men who had barelv e-i-uudi to bvo on in any case. . . . Th° Leader of the Opposition (Air. T. AL Wilford) also spoke briefly upon the provision made for old public servants. Mr. AV. E. Parry (Auckland Central) uuged tlig Government io emend the pensions law in certain directions. He also advocated curtailment cf o - c export of New Zealand timber during a period of I twelve months. Timber for vvoikers’]

dwellings, ho said, should be given precedence over all other timber ordered in this country.

Company Taxation.

Dr. A. K. Newman (Wellington East) said it seemed to him that one of the greatest hardships inflicted on the people of New Zealand to-day was the huge taxation on companies. When reductions were being made on taxation, tho case of the shareholders in companies should be considered. Most of them were small investors, and the scale of taxation hit them very hard. At March 31 there would probably be a surplus of £3,000,100. Tho Prime Minister surely did not require such a large surplus, and he would suggest that the amount might be used to give the people some relief from tho taxation burden. Expublic servants should receive more assistance than they did at present. Many could very easily afford to pay tho ten per cent, of income tax that it was proposed to relievo them from; but tho Bs. 9d in the £ taken 'd'rom the company shareholder was a grievous burden.

Mr. W. D. Lysnar (Gisborne) asked whether the Prime Minister, while providing that tho term of debentures for local body loans might be shortened, would also provide that it might bo lengthened. The Gisborne Borough Council had authority to raise a loan, and would be able to get the money if the term were extended.

Mr. 'l'. E. Y. Seddon (Westland) said that while £50,000 had been granted last year for the increase of pensions to disabled soldiers, war widows with children and widowed mothers sot nothing of. tho amount. He hoped that this would be remedied. The question of royalties on forests was agitating certain local bodies, and he hoped that before any legislation ns passed it would be submitted to the local bodies interested. Mr. H. E. Holland (Buller) urged that there should be no reduction in taxation so far as tho larger estates or tho larger incomes were concerned. There might be a reason, he said, for reducing the taxation on the smaller areas and the smaller incomes. When the prunins-knife was nt work some of the higher salaries in the country might be cut down. AVhatever was done to reduce wages should begin at the top. If any mnn was unemployed. it was the result of bad government. bad administration. The Hon. J. A. Hanan (Invercargill) believed that thousands of pounds a year could be saved to the country if waste nnd extravagance In the Public Service were eliminated. He quoted one or two statements of what could be done in th* line he indicated, and the. Prime Minis!er wns able to retort that more had been done than Mr. Hanan was asking. After some further debate, the Prime Minister replied. "Stagrjerina Under the Lead” Mr. Alassey indicated iaail 1e thought no good purpose would bo seived by h!s speaking at any length until all the members had had an opportunity of studying tho Bill. A. rood deal had been”said about the unwisdom of reducing taxation. He himself v.as impressed with 'Phe idea that the ’Wintry vm nt present staggering under the load of taxation it was called upon to bear. A deputation of commercial men—lhe ablest, deputation that had ever waited upon him—had recently spent, a morning in his room discussing finam'C. Ibe views ex-

pressed by Hint deputation had served to confirm the impressions that existed in his own mind. The position dd no! seem fo have occurred to some o’ the members w)J»o had spoken tent night. Let them consider tho case of p com-pany-owned business that before paying taxation waft showing a profit of .1.20,(100. Tho fax"collector came along and took, say, 9s. In the pound, or £9OOO ent of the £20,000. The effect :.f that was that n heavier burden had *o be passed on to the consumer. Tn some cases bands oven had to be dismissed. IT’ was auite convinced iihat if the country-was- to get out of the slump it must practise rigid economy, and go in perhaps for drastic retrenchment. If it was roccssriry, the firs!, salary to suffer v.i.-i.ld bo his own. Ho wished to avoid that sort oLlhJng. 3»d he was rot talking in any vainglorious spirit. So far rs the superannuated public servants were concerned he had proved his sympathy with tffiem last year by setting aside £109,000 to sunnlement tlieir incomes.

Mr. D. G. Sullivan (Avon): We are only asking you to continue. That was always the trouble, the Prime Minister rejoined. One created a precedent. nnd then pressure v.as brought to bear, and what had been done was apt to become an annual affair, whatever the circumstances of the country might be. He was not going to say that be wouldnot accede to the request ’hat had been made on be'half of the old public servants. He was going to continue the nnyment _so far as the widows were concerned, evPn if he bad to take the necessary amount out or borrowed money. AVith regard to the other matter he had not quite made up his mind yet. Last year, .-ESCIOCO had been applied to provide comforts for disabled soldiers. He wanted to continue that. There were auite a number of little things tha - ) he wanted to do if the finnucea of tho country would permit. Air. Alassey added that the financial position of tho country was such that for the present ho was bound to reduce expenditure on housing. Tho Government had provided nearly .£3,000,000 for people who had built or wore building their own houses, and ho believed that, was a better arrangement than for the Government to build houses itself. Tho financial responsibilities of the Government were very heavy indeed. Enormous’ additions' had been made to wages in the Civil Service, and the time had not come for reductions, though the lowered cost of living might make that possible in the future. Tho Government was making provision for the possibility of unemployment. He would tell the House next day what had been done by TTTe Government in the matter of economy in the Public Service, • and he thought members would be .satisfied. Boards consisting of heads of Departments and experienced members of the service had been set.up. Members must assist the Government by not asking for expenditure that could be avoided. The Bill was read a first time. Tho second reading will bp taken to-day.

HUTT-WAIKANAE ROAD AVORK MAY BE HELD OVER FOR THE AVINTER. A report that so many men had been taken off the Hutt-AVaikanae Hoad as io render unlikely life completion of the road this autumn was mentioned in the House by Air. AV. 11. Field (Otaki), who asked tho Minister of Public Works whether it was true. The road, he said, was one of immense importance to the district. At the present time it was nearing completion. Ho hoped (hat (he Minister would see his way to have the work finished before the winter came cn.

Tho AHnister of Public Works (the Hon. J. G. Coates) explained that he did not know the road 'in question, but he understood that an expenditure of something like .£3OOO was necessary to complete it. Speaking for the moment without information from his Ll’piirtinont, he expressed the opinion that rhe nOl k might bo one that could be left over for the winter. It might come in handy later as a means of relieving unemployment. Ho would, however, look into (ho question.

MORTGAGES EXTENSION BILL BEFORE THE HOUSE MORATORIUM STILL NECESSARY EXTENSION TO NEW MORTGAGES SUGGESTED The Prime Minister moved the second reading of the Mortgages Extension Amendment 1 Bill, which extends tho duration of the moratorium from June 30, 1921. to December 31, 1921. and permits the Supreme Court, in considering applications relating to mortgages, to fix terms and interest up to December 31. 1922. TTe said he thought members would agree that the moratorium ought to be extended on account of the financial stringency now prevailing. The extension was necessary to protect many most deserving people from hardship. Ho was aware that there were two sides to tho question, but Parliament had to legislate for the interests of the country generally. The Deader of the Opposition (Air. T. M. Wilford) suggested on amendment that! would make the extension- applie able to mortgages entered into since the original Act was passed. The Act applied only to mortgages made prior to a date tn 1914. Many short mortgages had been made in recent years, and he thought the advantages of giving some protection to these new mortgages should be considered. He invited discussion of the pointIf the amendment would have the effect of restricting advances made by banks, he would drop it ot once.

Air. E. Newman (Manawntu) agreed that in the interests of the community generally tho moratorium should be extended. He thought, however, ilhat the onus of asking for relief should bo placed upon the borrower. No borrower should get any advantage under the Act if the mortgagee could show that tho mortgagor could get iffie money elsewhere at a reasonable rate of interest. The position of tho building societies, which bad acepted money on deposit, and lent U 0,1 . rnorf required consideration. If societies could nor. call up their mart' gages, they might not be able to par their depositors. If a mortgage fell due, nnd the mortgagee was willing to grant a new mortgage for an ordinary tjerm at the current rate of interest, the mortgagor should not be allowed to take advantage of tho Act. Air. Newman thought that the moratorium should apply to recent mortgages i n orde r to assist returned soldiers. J l‘ J/ J’ uke (Wellington North) said that the financial difficulties of New Zealand ’had been increased by the investthe Bifl ni ° ney abTOa<L He "»P l ' ov6d

Mr. At. H. Field (Otaki) thought ihe Government was doing the right thill" in extending the moratorium, though lie did not think it was going far enough. He urged that the extension should apply to all mortgages, including those entered into in recent years by returned soldiers. Air. R.. Al'Callum (AVairau), who had introduced a Bill extending the moratorium for a full year instead of the six'months stipulated in tho Government Bill, gave general support to the Bill, but suggested several minor changes, including' protection for mortgages on mining leases.

The Hon. E. P. Lee said it would be a mistake, to extend the protection to recently-executed mortgages. The lenders had been given an assurance in 1919 that they would not be affected' by extensions of tho original Act, and. they would regard the amendment proposed by Air. Wilford as a breach of faith. The effect would bo to discourage people from lending money; on mortgage. Mr. AL H. Reed (Bay of Islands) suggested that the outstanding mortgages should be divided into groups and made t) fall due gradually. There had been times in recent years when very many of the mortgagors could have paid off the money, Irit they had taken advantage of tbo moratorium. The present financial stringency made an extension necessary, but the sooner the country got back to normal the better. Mr. J. A. Young (AVoikato) suggested that the final date should be /Jovemher 30, not December 31. The later date fell within tire lawyer’s holidays, and confusion would result from an attempt to deal with the mortgages at. that time. The public should be allowed to know clearly when the moratorium wns coming to an end. The outstanding mortgages should terminate in groups. The need of the moratorium was much greater to-day than in 1914 or 1915, said Mr. R. TV. Smith (AVainiarino). AVool and sheep were practically valueless. Ninety per cent, of tho farmers and very many of the business men were watching to flee what relief Parliament would afford them, and if the relief was not sufficiently wide, thousands of men would lose their lives’ savings, and would be driven fo the wall.

Air. AV. D. Lysnar (Gisborne) supported the argument of the member for Waikato that care should be taken to prevent all mortgages from falling due at the one date. He also expressed the opinion that when a man who had his money tied upon mortgage needed money himself and had to raise it at a higher rate of interest he should be able to recover the higher rate. The Prime Minister said that lie regretted the necessity for the extension of the moratorium, hut he felt that the financial stringency made action essential. It was a fact that at the present time men were being required to pay 10 per cent, for money on sound security. The position was very much worse than when tho moratorium was originally ordered. He hoped that the Dominion would not have much experience of compulsory realisations, but. if Parliament did not pass the amending Bill he believed that scores, perhaps hundreds, of settlers would be sold out of house and home. Members: Thousands. The Prime Minister added that he admitted there was hardship on the side of the mortgagees, but Government and Parliament had sometimes to do very unpleasant and unpopular things in the public intSrest. He hoped that tho mortgagors and mortgagees would not wait for the last day of the extended term, but would go to the tribunal appointed and make their arrangements. He hoped also that the financial stringency would not last long. Falling markets, high freights, and increased cost of production" had been factors in bringing about the trouble, but the stringency would have the effect of getting the country back to normal conditions more quickly than would otherwise have been the case. The policy and principle of tho original Act would have to be fully reviewed next session.

Bill May Yet Be Altered. At the committee stage of the Bill. Mr. M'C’allum proposed to move certain amendments, but ho did not press them to a division. The Prime Alinistcr said ho hoped that there would be no divisions. The Bill was the “pet measure” of tho Attor-ney-General, who had drafted the Act, and all (he amendments. The AttorneyGeneral recognised that it was not perfect H was impossible to make the Bill perfect in the time available this session, but Sir Francis Bell would redraft the whole measure, and endeavour to make it as nearly perfect as possible, soon after the beginning of next session. It was quite on tho cards that an amendment to the present Bill might be necessary. If so, tho amendment would be brought down by Governor-General’s Message. He would ask the House to pass (lie Bill as it stood, and let it go back to the Council; then, if it could be amended to advantage in any way,

he would be glad to consult his colleague tho Leader of ths Upper House, and mako an amendment accordingly, even during the present session. The Bill was reported without amendment, read a third time, and passed.

SHOPS AND OFFICES ACT

CASE OF THE SMALL SHOPKEEPERS

AMENDING BILL DISCUSSED In moving the second reading of the Shops and Offices Amendment Bill in the House yesterday, tho lion. G. J. Anderson said that the Bill had been intioduced at the request of a very large number of small ehopkeepere in New Zealand. They complained that they had not had any notification of tho amendment last session, and had not had an opportunity of putting their case before the Labour Bills Committee The effect of the Bill was that the law would go back to what it had been before the passing of the 1929 amendment. There would then be only two ways of closing' shops in which no assistants were employed: One was by requisition from a nuajoifty of the shopkeepers, and the other by decision of tho Arbitration Court, which was empowered, when making an award in any ehop trade, to fix the closing hours of shops m that trade. It would, of course, bo open for any member next session to move tho reintroduction of the clause, and the question could then go before the Labour Bills Committee. His personal sympathies were with the small shopkeeper. Air. T. Rj Sidey (Dunedin South) said that he had no intention of placing any obstacles in the way of the Bill. He criticised the Government for having by its method of handling legislation rendered the introduction of such a measure necessary.

Air. P. Luke (Wellington North) announced his intention of opposing the Bill. Ho was not .in favour of having legislation rushed through in this fashion to amend an Act passed only last session. ,lle claimed that the shopkeepers who were suffering hardships could refer their case to the Court. lie did not believe there was anything in the allega-

tion that the small shopkeepers had not known, of last session’s amendment. Atr. E. Kellett (Dunedin North) thought that Inst year’s amendment should not be repealed. Air. TV. H. Field (Otaki) said that a clause ought to be inserted in the Bill to prevent persons who were permitted to keep their shops open late because they sold perishable goods from selling other goods, in unfair competition with shopkeepers who had to close early. Air. V. R. Potter (Roskill) strongly protested against anything that would handicap the small man. In Auckland the people whose case he was supporting had not known about the amendment

last session. Some small shopkeepers were returned soldiers. If they had to close early it would mean they would have to throw - »heir businesses back on to the hands of tho Government. When he had voted for tho 1920 Bill he had voted wrongly, and he was taking this opportunity of rectifying the error. An Amendment Moved. Afr. L. Al. Isitt (Christchurch North) thought it very unwise for the Government, at the instigation of a small section of the community, to hurry through legislation that might wreck a reform which was .the fruit of years —the introduction of early closing. He moved as nn amendment that the Bill should bo held over until next session in t order to enable further evidence to be taken before it was passed into law. Air. Luke spoke in support of the amendment. He was in favour of having the Bill postponed till it could bo fullyconsidered. About a Petition. Mr. J. M'Combs (Lyttelton) said that the request to the Afinister came from only a few hundreds of shopkeepers —if the forged signatures to a ‘‘bogus petition” were left out of account. Air. Potter rose to protest against tlie suggestion that he had presented a petition with forged signatures. He said that the petition, returned to him by the House, had been returned because four names were signed by the flame hand. No forgery was committed when the sanction of the person whose signature was written was given to the person signing the name. Air. At'Combs read a communication which, he claimed, proved that tho use of the names, in some cases at least, had not been sanctioned. A Compromise. After the dinner adjournment, the Minister in charge of the Bill stated: “It is recognised that there is a great deal of opposition to this Bill, and as the clause itself was a compromise last year, so now I would suggest a compromise in this case. In clause 9, which deals with cases where the Court of Arbitration fixes the closing hour of shops, there is this proviso: ‘Provided that the Court may on application by tho occupier of any ehop exempt that shop from the operation of this section if tho Court is of opinion that the observance of the closing hours fixed by the award would cause undue hardship to the occupier. I propose that that proviso, with alterations to make it suit the terms of clause 11, should be inserted in clause 11. That will give the small shopkeeper who considers ho is suffering undue hardship an opportunity of going l to the Court. This proviso will hold good until January- 1, 1922, and I hoi>e to have a consolidation of the Shops and Offices Act and the Labour laws generally introduced early in next session. The whole question can then be thrashed out before the jjaboui Bills Committee, and in this House, and all the small shopkeepers can come and "ive their evidence. If the House then flees fit to alter the clause the opportunity will be given.” Air Isitt withdrew bus amendment in* view of the Minister’s suggestion.

Mr. A. Harris (AVaitcma’ta) thought such 'hardship x was being inflicted on the small shopkeepers that any compromise of the sort suggested was to be strongly deprecated. AA by, ho asked, should the returned soldier who was in 'business as a small shopkeeper be unnecessarily put to the trouble of going

to the Court for exemption? He regretted that a serious injustice to a large number of people was not to be removed while the House was in session. The Prime Alinistcr (Right Hon. AV. F. Alassey) said he could see that there was no chance of nutting the Bill through this session in the form in which it had been introduced. The next best thing, then, appeared to he a compromise. The whole thing seemed to turn on one point: If the small shopkeepers were to he allowed to keep open till their cases could be heard by the Court, tho compromise was a very satisfactory one. Air. J. M'Combs (Lyttelton), who was opposed to the Bill, observed that tho present position was that the shops had to be closed. .

Air. Anderson said that in his opinion shopkeepers should be required to notify within a stated period—say a fortnight—their intention to apply for exemption. If a notice was put in, ho thought there should be no prosecution until tho Court, had dealt with the case. AVhen the Minister finally drafted the proviso that he proposed to insert by way of compromise, the words "this section” appeared in place of tho words “tho award." After some further debate, the proviso was inserted in the Bill, and with this amendment the Bill was reported. Nothing was put into tho Bill to enact that a shopkeeper should not ho ’linble to prosecution for keeping open while the

hearing of an application for exemption was pending. The Bill was read a third time and passed

EXPIRING LAWS CONTINUANCE

BILL READ A SECOND TIME.

Tho Prime Minister moved the second reading of the Expiring Laws Continuance BiH at 11 30 p.m. He mentioned that the enactments that were being continued included the rent restriction laws, which would require to be reconsidered in the long session later in the year. The present laws were being continued until the end of the present year. Tho Leader of the Opposition (Mr. AVilford) said he had not had any opportunity of examining the Bill, and he could not understand it without referring to the original Acts. lie suggested the Bill should stand over until the next day. Air. Alassey said he would agree to take the second reading that night and the other stages the next day. Tho Bill was read a second time.

The House, adjourned at 11.45 p.m. unHl 11 a.m. to-day. /