PARLIAMENT

Evening Star, Issue 22145, 27 September 1935, Page 17

PARLIAMENT

BUDGET DEBATE CONTINUED MANUFACTURES OUTSTRIPPING DAIRY PRODUCTION (Per United Press Association.] WELLINGTON, September 26. The House met at 2.30 pan. Mr Howard gave notice of his intention to introduce the Christchurch Drainage Amendment Dill; Mr O’Brien to introduce the Western 'Sawmill Accident Benefit Bill. The Wellington High Levels Tramway Amendment and Empowering Bill (Mr Chapman), and t|io Hamilton Borough Council Empowering Bill (Sir A. Young) were both read a first time and referred to the Local Bills Committee. The financial debate was resumed .by Mr Lee, who, referring to Mr Dowme Stewart, said that if they wanted to do the right thing they must do the opposite to that which he advised. It, was his policy that scuttled the Coalition ship, and then he screamed at the twin skippers from the dinghy. Mr Lee went on to deal with unemployment, He said the House had been told that the number of unemployed was decreasing, but he believed the figure quoted did not include a number who were debarred from registering. Despite predictions regarding the return of prosperity, 7,000 more persons left New Zealand in the last three years than arrived in it. There may have been a bright spot or two in the Budget —restoration of pensions—but he was of opinion that later on the “ burnt out ” soldier would have to be treated in the same way as the_ man totally disabled at the war, and given full pension. Mr Campbell congratulated the Government on its very satisfactory Budget. He thought that, as Britain was New Zealand’s best customer, sbme attempt should be made to steady imports from Australia, who took practically nothing from New Zealand. He thought men on sustenance should be given every encouragement to get off it and help themselves. They should be examined only every month or two, not every two or three days. He considered that the time for revaluation of Crown tenants’ land was overdue, and men who had struggled along given some relief.

Mr Schramm said the three most important problems before the country today were housing, unemployment, and the question of national superannuation, health insurance, and pensions. There was great need for a housing scheme in New Zealand. Many people were being evicted from houses, and a private landlord could not be expected to carry tenants on his back, as he had his rates and other payments to meet. The Government, in conjunction with city councils and other local bodies should adopt a proper housing scheme at once, and he hoped that the matter would receive more attention than mere mention in the Budget. If the Government spent millions of pounds it would be money well spent. He hoped that the Government before the session ended would bring down a measure providing that school children should be given half a pint of milk daily. Mr Harris thought people would appreciate the absence of window dressing from the Budget. He would have liked to see some substantial reductions in taxation as were promised last year. He predicted that the year would end with, a surplus of a million sterling, as treasurers had a happy knack of overestimating expenditure and underestimating revenue. He suggested that relief should be given by abolition of the primage duty on British goods. New Zealand was probably the highest taxed country in the world, and there was no reason why it should be so. A greater reduction in the unemployment tax might have been expected., Mr Armstrong said that in 1928 there were 10,227 apprentices. This year there were 3,500, 7,000 less, and while avenues of employment were becoming less, the male population was increasing. He blamed the Government for the loss of the savings of the workers, for a large number of insurance policies either lapsing or being abandoned, for more than half the farmers being unable to pay either their interest or their principal, and for more than half the returned soldier settlers being in arrears with their rent, and being in an impossible position. , Mr Armstrong said that as Britain was turning her attention to agriculture, New Zealand should endeavour to increase the consumption of its own produce. The value of New Zealand manufactqred goods was £32,000,000, the value of dairy products was £20,000,000, so that New Zealand had reached the stage when the manufacturing industry was of more importance and was producing more than the dairy industry. The total production of New Zealand was valued at £98,800,000, of which £41,000,000"was exported. The total number of persons earning a living from the primary industries was 115,500 or only 20 per cent, of the population. THE PREMIER REPLIES. Mr Forbes said it was thought that definite signs of success would bo hailed with satisfaction by all members of the House, but that did not seem to be so with the Opposition, to whom it seemed that everything that had happened was the fault of the Government and that nothing that occurred outside seemed to have anything to do with it. He contended that the reduction or restoration of wages had no connection at all with the rise or fall in the number of unemployed. He reviewed the effects of the depression, and said the fall in the national income was very considerable. It fell from £150,000,000 in 1928-29 to £98,000.000 in 1931-32, and that was bound to cause great distress. In the same period exports fell from £56,000,000 to £34.000,000, yet some members said that would have no effect on the Dominion. The improvement in farm prices was immediately reflected throughout the country. The Government had been charged with having broken contracts, and done other drastic things, hut something had to be done to come to the assistance of primary producers, and he thought the action taken was very moderate. He compared the reductions New Zealand made with those of other countries. Every country in the world had had to deal with its currency, and the_ Government had been told that by raising exchange it had forfeited all reputation in regard to finance. He claimed that stability of New Zealand finances had been achieved, and that counted a great deal in Britain; and New Zealand’s prosperity was closely linked with that of Britain. The fault with Labour Governments was that they were unable to withstand pressure from organisations outside Parliament and finances consequently suffered. He claimed that the Government’s record in regard to prudent finance was equal to that of any Government that over sat on the Treasury benches. Labour had said that what the Government was doing was to secure votes, but what was Labour doing? Every time the Govcrn-

meat gave a few benefits Labour’s hid wont a little higher. He contended that if Labour’s policy were attempted the country would soon be in a state of bankruptcy Mr Semple said Mr Forbes had said Labour, if it reached the Treasury benches, would be influenced by some organisation, outside Parliament. But surely the Prime Minister should be the last to make a statement like that. In the four years of the present Parliament not one measure had originated from the Cabinet, but had been suggested by commissions or boards. Mr Semple continued to criticise the Government for subsidising a wealthy insurance company. He also contended that the inference taken from Mr Downio Stewart’s speech at_ Dunedin was that lie was outside Cabinet looking in,-but he would like to he inside Cabinet looking out. That was why he wanted Cabinet reconstruction.

Mr Barnard said most of the big things iu the Budget were to happen after the election, and they were dangled before the eyes of the electors in the hope that they would accept the Government at face value. The actual plans for this year Were fragmentary compared with the large promises for next year, and he liqpecl the Government would not bo in power next yehr to give effect to them. He urged completion of the Napier-Gis-borne Railway, and said it would offer suitable work for the unemployed. The debate was adjourned, and the House rose at 11.55 p.m.

LEGISLATIVE COUNCIL

The Imprest Supply Bill was passed. Speaking on the second reading of the Shipping and Seamen (Safety and Load Lines Conventions) Bill, the Hon. W. Perry urged that in the event of the Imperial Government not taking action in the matter of meeting competition from American subsidised shipping New Zealand _ and Australia should take the matter in hand to protect their own shipping in the Tasman.

The Leader of the Council, the Hon. R, Masters, replying, said that in view of the fact that the matter was still under consideration by the Governments concerned he was not prepared to discuss it at the moment. _ At the request of Sir Francis Bell the Bill was referred to the Statutes Revision Committee. The Council rose at 3.25 p.m. till October 1.