BUDGET DEBATE

Hawke's Bay Herald-Tribune, Volume 81, Issue 19, 15 October 1937, Page 5

BUDGET DEBATE

Presa Assoclation.)

Liquidation of Local Body Overseas Loans SUGGESTED SCHEME

(By Tele«raph

. WELLINGTON, This uay. The House uiet at 10.30, whou the thirj reading of -tho Nelson Diooesan Trust Board Ejnpowering Bill (Mr H. Atmore) was passed, "Mr H. S. S. Kyle (Oppn., Riccarton) gave notice to ask the Prime Minister when the decision of the Labour caucus, regarding the taking-pver of the tradin-* hanks would be mad® public, and •yvould the Primp Minister give the hauks sufficient time to make preparations to wind-up their trading business in New Zealand. The Speaker advised Mt Kyle that the question would have to be euasiderqbly modifted. Replying to an urgent question by Mr C. Morgan Williama (Govt., Kaiapoi) as to whether the Government had the powef to decide the price paid its butterfat suppliers during the sehsun when a proprietary dairy eompany had dispesed of its business, the Minister of Agriculture, the Hon. W. Lee Marfin, said that as the law provided adequata machinery for the settlement of sucli elaims, tho Government could not mahe an arbitrary decision in matters of this nature. Two days ' leave of absence was granted Mr T. H. McCombs, one day to Mr T. D. Burnett, and one day to Mr K. J. Holyoake, on account of urgent public business. The Budget debate was contiuued by Mr C. H. Chapman (Govt,, Wellington N.), who suggested to the Minister of Finance, the Hon. W. Nash> that ar.rangemente should be made through the Reserve Bank to liqui,date the whole of the overseas indebtedness , of local bodies in New Zealand.' The xesult would be a saving of not less than one million .pounds and that would enable local bodies to reduee the0rate hurdon, which was bearing so heavily on citizens. • . Mr H. G. Dickie (Oppn., Patea) said that Mr Chapman 's suggestion, if carried out, would mean au overdraft at the Eeserve Bank of £68,000,000 and that was fantastic. He agreed that a 40-hpur week should be adopted where possible, but if it was going to force costs up, it should not be undertakeu, The Government was rushing its fences too liastily. He urged the Minister of Lands to start a land settlement scheme to relieve unemployment, Even if it cost some millions doing it, it would be better than waeting money on sugten* anco payments, because some of the men^ at least, would make good settlers. He was confident that in a time like this, we should budget , for a greator surplus, because a slump was sure to come and we should have adequate reserves to meet it. Mr D, W, Coleman (Govt,, Gisborne)' said lie wished to place on record his wholehearted support of the Budget which was an humanitarian one, despite

the fact that the Opposition could see no' good in it. The Governmeht, he saidi adinitted an increase in the cost of living, but wages and salaries had also increased., and people had more spending power to-day than in the past. Speaking of broken promises, the Opposition should be the laqt to do this. They had been the first to reduco wages and pensions, and they had pegged the exchahge raio 20 days after they had promised not to do so, Labour denied, said Mr Coleman, that it had broken its promises,, and the fact that it had not done so was amply demoustrated by the prosperous condition of the country to-day. The Government had not increased taxation. The imjreased Government revenue was due to the general prosperity. The debate was adjourned at 1 p.m.