OPPOSITION CRITIC

Hawke's Bay Herald-Tribune, Volume 81, Issue 8, 2 October 1937, Page 3

OPPOSITION CRITIC

i— Prpsp Assoeiation.)

"Lip Service to Secondary y Industries" CREDIT FOR HOUSING

! (Bs Tplozraph

WELLINGTON, Last Night. •me aeoate on the Budget was resumed, Mr. W. J- Folson (Opposition) ! being the first speaker. He criticised the Government's legislation which, he I said, contradicted every pre-eleetion ! promise they had made and asked if i any member of the Government could explain the Prime Minister's idea of monetary reform, or his idea^ of the basis of the extension of credit. The L'rime Minister had failed to clear this point up. Was it going to make use of the Keserve Bank to lend to itself the creation of new money for housing. There was an indication of that, but 1 it was not his idea of the creation of wealth. It was surely a new idea. He said that high taxation was justified by high export income and he could find no experience which- justified it in Isew Zealand or in any country in the wo-ld. Mr. Polson, continuing, said that taxation had increased 75 per cent. and he asked what was going to happen if the export income of the country fe% to a levcl of the average bf the last ten years, namely £44, '000, 000. ^ Industry in this country was dwindling. He said that he was basing his statement on facts and figures which had been given him by a number -of manufacturers. He stated that the Governmeut was giving a .certain lip service to secondary industries but it were doing nothing to assert it. A set baek to industry by the Government would either destroy industry or would cTeate inflations and in each case the workers, would be the first to suffer. The Prime Minister, in his speech, did ^ not xeassure them concerning taxation. In fact, he said he was going to impose even further taxation. Mr. Savage: I did not say that.^ _ Mt, Polson: If you did not say it, then how do you propose to carry out your programme without further taxation.

Mr. Polson drew attention to the costs of Ministers' tours abroad which, he said, totallcd £13,517. The cxpenses of the New Zealand contingcnt to the Coronation was only £3500, and he had been informed that our contingent was the only one denied a trip to France. Surely that was a trifle niggardly in view of the lavish expenditure on Ministerial tours. " He also pointed out how the attitude of members of the Government had changed regarding the costs of ministerial tours since they had occupied the treasurv benches. Gift Duty Advocatea Kev. A. H. Nordmeyer (Labour) quoted the cost of living statistics to i cover a period of years to demonstrate ihat the margin between wages and costs to-day enabled a workcr to be relatively much better off than in the days when the previous Government was in office. He strongly advoeated relief from indireet taxation, even though it involved increased income tax. The Opposition had described the Budget as an "eat-drink-and-be-merry" budget. Mr. Nordmeyer later provided the House with a laugh when he humorously asked whether the estimated inerease on beer duty indicated a dry summer. The speaker suggested the imposition of a high gift .duty to prevent the practice of making substantial gifts year by year to reduee income and avoid high death duty payments. Class Prejudices. Colonel J. Hargest (Opposition) referred to the labour aceusations that the Opposition were preaching class prejudices. Why, he said, the Minister of Publia Works, only a little while ago, had said in the course of an address that the Tory party would deprive workers of their votes if they came into ofiicc. What was that but preaching class prejudiee, he asked, and then the Government aceused the Opposition of preaching it. The Opposition /•ad never done so. Mr. Hargest said the time had come when a halt should be | c-alled in taxation, as there was a de1 .iulto liinit to the taxability of this , The House then ad.iourned.