CLAIMS IN HOUSE

Hawke's Bay Herald-Tribune, Issue 206, 16 September 1937, Page 3

CLAIMS IN HOUSE

-Press Association.)

Government Speakers Open Address-in-Reply RESERVE BANK CREDIT

» (By Telegrapb-

. yf.T" WELLINGTON, Last Night. ! The House met at 7.30, when the galleries were moderately filled for the commencement of the Address-in-reply debate. Moving the Address-in-reply, Mr J. Thorn (Thames, Labour) said it was likely that the Opposition would voice some criticism of the Government in the course of the debate and he proposed at the outset to put things in a proper perspective. After outlining the problems which faced the Government when it took offce, Mr Thorn said it was obvions that any true policy must put the financial organisation in order. It must expand industry, it must increase spending power, and it must begin with an improvement in the income of the poorest classes of the commnnity. "The means to be taken must be immediate and direct," he said. The Labonr PaTty had definitely affirmed this in its election manifesto and had carried out its pre-election pledges completely. Through tho agency of the Beserve Bank it had made over £11,000,000 of public credit available for national purposes— £6,000,000 to finance the payment of the guaranteed price and £5,000,000 for the building of houses. In each case this credit was issued against a means by which it could be redeemed, so that it could not jbe said Labour 's administration of the ibank had been inflationary. Mr Thorn Stressed. the improvement in the country'g industrial position, citing the fact Jhat there had been an increase of 692 factories registered for 1936-37, against the 1935-36 period, while the nnmber of feetory workers had increased by 8766 for the same period. As compared with the boom year of 1929-30, the number of factories had increased by 44 and the nnmber of workers by 6593. This did not look like bankruptcy. Speaking of housing, Mr Thorn said that for four years, from 1931 to 1935, over 40,000 marriages had taken place, that at the very least, private entefprise was suffering the disadvantage of the past Government Js anti - social policy. By closing down on the State Advances, they must have fallen shoft by 29,000 to 25,000 houses of the number needed to meet the normal requirements. With Teferenco to the guaranteed price, Mr Thorn contended that dairy farmers had unanimously supported the aew marketing system and there was virtual nnanimity in favour of the guaranteed price principle. But as to the price itself — the -new price for butter of Is l^d — racketeers, with the aid o£ Tory papers, were again en* deavouring to creato the impression that U was inadequate. Kew Companies as Signpost* In 1936, said Mr Thorn, no f ewer than 148 new companies were registered, nrith an aggregate nominal capital of 69,934,903, while from January to June of this year, 407 new companies were registered, with an aggregate nominal capital of £3,427,000. In the 18 months of Labonr xule, 1349 new companies, with a nominal capital of £13,361,000, were registered. Speaking of the extent to which companies had benefited, he gaid this was indicated by their assessible ineoine, which had increased last financial year by £2,000,000, an increase of 16 per cent. The profits of 150 representative companies, after paying taxation, showed an increase of 14.3 per cent. Increased business and turnover was shown by the saies tax, which had increased by £338,447, or 25.3 per cent . Luxury expenditure in the shape of raclio licenses, totalisator investments, motor car imp'orts and car Tegistrations, had also all increased very substantially, The Post Office Savings Bank returns showed that there were 40,186 more depositors in 2937 than last year, and both in this bank and the Trustee Bavings Bank the total savings had increased enormously, namely, by £5,855,829. The people were spending more and saving more. They wero happier and more confident. Parmers* Best Priend Mr. J. G. Barclay (Marsden, Labour), seconding the motion, congratulated tho Prime Minister, Minister of Finance, and Minister of Labour on the results of their tours overseas. Ho also congratulated Hon. A. Hamilton on the leadership of his party, stating that Mr, Hamilton was an ideal leader of a Conservative Opposition. Speaking of tlie achievements of the Labour Government, Mr. Barclay said it had increased pensions payablo .this year by two million pounds, but, he added, 23,470 more people wero now receiving pensions than were doing so in, the past. He proceeded to deal with the taxation position, contending that the present incidenc'e of taxation was by no meaus a erushing burden to the . individual taxpayer. IVhcn the present Government camo into office, it had to i'ace Iwo big problems, namely, 54,000 unemployed and the position of fhe dairyisjg in-iustry in which more than half the farmers were bankrupt. ,The Government had taken over the Reserve Bank and from U liad taken eredits with wlii'.'h it iiatl aaielioraled butb the unemplo} ment sJlnatiou auJ tlie position of tne claii v inrmcrs. j lm Government was paying 14 per cnu. for credit it had taken from the Reserve Bank, and all tho way tlu'ungh the Government 's finaneial poi i cv had tended to keep donn iutciost rutcs i;Ihis country.