PARLIAMENT

Dominion, Volume 36, Issue 218, 10 June 1943, Page 4

PARLIAMENT

Debate On Financial Statement

FIVE MORE SPEAKERS The Budget debate was continued in the House of Representatives yesterday, when five more speakers, three Government and two Opposition members, took part. The only Minister to speak was the Minister of Marketing, Mr. Barclay. The House rose at 9.45 p.m. till 2.30 p.m. today, when the debate will be continued. An appeal to the Government to develop the low-grade superphosphate deposits at Clarendon in Otago to the fullest possible extent and thereby make the Dominion independent of supplies from overseas sources was made by Mr. Folson (Opposition, Stratford). He suggested that they should be worked co-operatively by all farming organizations, possibly with some help from the Government. “The Clarendon deposits can he more easily worked than any low-grade deposits in the world,” said Mr. _ I olson. “They are worth more, than all the gold mines ever found in this country. If we develop the Clarendon deposits as they should be developed we will be able to supply this country with cheap superPh Mr. h Polson said the deposits should not be handed over to a company to just fiddle with. He understood arrangements had been made with a company, which proposed to rail the rock to Dunedin to work. It should not be done that way, but should be worked on the spot. The Minister of Agriculture, Mr. Barclay : You cannot get the machinery just Mr. Polson: If the Minister to Washington makes representations to our ally he will be able -to get the plant. “The thing must be done properly or not at nil,” said Mr. Polson. “The Government is using money for other purposes that are not so important. Ihis is a proposition which would enable New Zealand to produce more and. more from the land. Fertilizer is the life-blood of this country, and farms are going back for lack of it.” . . “The Budget mentions the farmer in terms of patronising flattery that are almost insulting and does nothing for him,” declared Mr. Polson. Ihe primary producers, he added, were in yery great difficulty because of the deterioration of their properties. While the Budget railed against inflation it revealed 'that the Government had done nothing else but inflate Farmers had been handicapped for all the years of the war by increased costs. They read of the new rich and of watersiders with an income ot jtieo a year. Not many farmers were receiving thjit income, even though they were working longer hours. The Government, said Mr. Polson, preached saving, but did not economise. It asked people not to travel by train and at the same time published advertisements enticing them to travel by rail to race meetings. ■ , „ "The day has gone when social services can be ignored,” said Mr. Polson. “We in New Zealand have been leading the world in social services for a generation or two. Adequate medical and social services have come to stay and will not be interfered with by any Government. At no time have I opposed the social security legislation of this country. At the same time there should be no calculated discouragement of thrift and that is one of the things about the social security legislation that has not been put right. Minister to Washington. “Mr. Nash went to Washington as Minister for a term of one j;ear and was absent for 15 months before he returned, said the Minister of Marketing, Mr, Barclay. It was quite in order for him to return to New Zealand to again get in touch with things. Defending the payment of subsidies from war expenses, Mr. Barclay said that £1,250,000 was the subsidy on fertilizers spent last year to ensure that the farmers got them at the pre-war rates. Would the Leader of the Opposition say that sum should not be charged to war expenditure, he asked. While Opposition members, alleged the farmers were suffering hardships they did not explain why it was that land values were increasing. Commercial and banning shares were practically stationary, but land values were soaring. He quoted a case of 150 acres being sold in the Patea district at £76 an acre. Referring to rehabilitation of returned men on the 'land, Mr. Barclay said there were 14 farms with houses ready, tor occupation Mid another 70 to 80 awaiting houses and other equipment to be ready for settlement. The Government was determined to settle men but not on secondary land or farms bought at exorbitant prices That was the difference between the Government and Opposition policies. Referring to the guaranteed mid other produce prices the Minister said all had been arranged after consultation and agreement with 'the industry’s representatives. The woolgrowers were getting tee best deal of all producers, their prices being 61 per cent, above pre-war rates, while the dairy-farmers enjoyed only o.i per cent, and wage-earners from .) to 19 per cent. In spite of allegations by the Opposition that, the woolgrowers were suffering hardships only about li per cent, had appealed to the Government for assistance, and to per cent, of the claims had been granted.

Paying for War Debt. Mr. Combs (Government, Wellington Suburbs) claimed that the Government had safeguarded the price, quantity and quality of all foundation foods to an extent never realized in the last war. The wage needs of the workers had. also been well looked after, 'though the national security tax weighed heavily on many families on the lower income levels. When the £35,000,000 Liberty Loan had been successfully raised the war debt domiciled in New Zealand would involve an annual dcbt’service of £4,000,000, assuming that further Joans for would be required. This £4,000,000 coul only be met out of taxation. Some New Zealanders would get very little interest as war bondholders, while others vho took up large amounts of loan would get much more iu aggregate returns. When the war was over a fight would dt-'cloi round the question of who it as to pay the taxation, and he personal y tod fight and vote, if he were, still in the House, to have the taxation on the wageeaThe e rB Leader e of the Opposition had described the Budget as an , elee 9f’ uec J l '!s Budget, continued Mr. Combs. He wouk ■i-reit that it was. It. was designed to show the people how a Labour Government planned to preserve them from ttant and fear. He hoped that the example of tlie Labour Government ot pealand would animate the nations at the peace table, lie vouiu surest a motto to be pinned on the walls of the hall where the peace terms would be signed. It should be for all men to act upon: “Thy will be done on earth as it is in Heaven.” ' Priority Purchase Plan.

“That a system of priority purchase certificates imght be introduced as one method of obtaining contributions to the war loan was suggested by Mr. Doidge (Opposition. Tauranga). He said that this would allow people to purchase certificates week by week against the delivery of goods lifter the war. Such a scheme would enable the Treasury to tap further surplus earnings. Tile tendency today w-is to think too much about money and too little of money’s worth A priority purchase scheme would enable people to re-enuip their homes when victory came with "noils and articles they required. The hope that the Ministi r of Finance would give a full explanation of the implications of lend-lense was expressed bv Mr. Iloidge. He said that it seemed that two years' operations of lend-lease would result in New Zealand being on the wrong side of the ledger to the extent, of £40.000,000. Was that to be wiped out or would tlie Dominion lie under a moral oliligation to pay it? If any settlement under the lend-lense scheme included a review of tariffs it must very seriously affect New Zealand as it would involve its whole fiscal policy. “The Budget has very little to say about planning for post-war reconstruction,” Mr. Doidge continued. “It has only five lines about the primary industries and agriculture. Primary production has always been the inninstay of this country, and wisely directed and sympathetically encouraged it can play a greater part, in our advancement than ever before. In every other country agriculture is lining speeded up, but here we are losing ground. The statement that the Government is unsympathetic to those engaged in the primary industries is unfortunately true. What an important

part the primary industries of New Zealand can play in succouring starving Europe after the war.” Mr. Doidge said the position m regard to the secondary industries was anything but satisfactory. Statesmen were unanimous that tariffs must go. There was only one country in which this vital subject was ignored, and that was New Zealand. No country was likely to be more affected by such a policy, and yet the Government was deaf and dumb on the question. Two years ago he had urged that there was risk in the postwar order 'that tariffs, restrictions and embargoes would have to go, 'and then suggested that the Motherland should be approached with a view to the formation of an Empire Reconstruction Council. Criticizing the Government's housing policy, Mr. Doidge said there' was a shortage of homes everywhere, and slums in Wellington and Auckland were as bad as anywhere in the world. The State system of 'building houses was too expensive, ns had been disclosed when comparing the Minister of Finance’s estimate of unit costs with actual expenditure, and was also too slow to meet the demand. The National (Party hoped to see a policy in operation which would encourage private enterprise and the people to own their own homes. Civil aviation would iplay a great part in ipost-iwar peace adjustments, continued Mr. Doidge. It had been discussed in the British House of Commons,, where Major Attlee had said the Imperial Government was in consultation with the Dominions as to a common policy. Was it not possible for the Prime Minister. Mr. Fraser, to tell us something about those consultations and proposals? The United States held 1 a monopoly today ..of air transport, as Britain had Ibeen concentrating on building fighters and bombers. Referring to the recent controversy on the use of air 'bases in the Pacific constructed for war .purposes, Mr. Doidge said that (New Zealand’s first loyalty was to Britain and the Empire. Ex-Soldier Members’ Views.

“It would be a fine tribute to the New Zealand Division if. after the war, Lieutenant-General Sir Bernard Freyberg, officer commanding it, was appointed (Governor-General of New Zealand,” said Mr. Macfarlane (Government, Christchurch South).' General Freyberg was eminently suited . for that honour. There had frequently been talk of having a New Zealander appointed as Governor-Genei’al, and he considered his suggestion would be a most fitting first appointment/ ' Speaking as a returned soldier of this war Mr. Macfarlane praised the Government’s ' decision recognizing the principle of attributa'bility in respect of disability arising after war service. It was a burning topic in Australia where the principle had not yet been adopted, though Canada recognized it. On returning from the Middle East he had been surprised at the number of men with previous illness who were being passed fit for overseas service by the doctors. He knew of several instances where men had collapsed overseas through the effects of previous illness. Under the principle of attributability they now qualified for war pensions. Mr. Macfarlane strongly urged that the Minister of Rehabilitation should be a man with war service (Opposition interjections of Hear, hear”) and particularly in this war. He suggested that Major C. F. Slfinner, the Minister-designate shortly to return from overseas, should be the man. The majority of members of the Rehabilitation Board should also be returned servicemen, with an ex-ser-vicewoman also a member. Referring to the report that the New Zealand Farmers' Union was considering joining the National Party, Mr. Macfarlane expressed the opinion that the political air would be cleared if the union did so. The hostility of many farmers to the Labour Government was traditional rather than based on reason. Many were wealthy men or men of position, aud he could only come to the conclusion that their hostility was organic. (Laughter). A Government member: Not the small farmer, though. Mr. Macfarlane expressed the hope that the coming election campaign would be fought on policies and not on personalities. Bitterness should be avoided because of the harmful and disruptive effect on the war effort. \ . The House adjourned at 9.45 p.m.