PARLIAMENT

Hokitika Guardian, 24 April 1931, Page 6

PARLIAMENT

THE COUNCIL. (By Telegraph —Per Press Association) WELLINGTON. April 24. j In the Legislative Council yesterday the Government Railways Amendment Bill was put through the remaining stages and passed without amendment. The Council rose at 11.40 p.m. THE HOUSE. In the House of Representatives official intimation being received of the death ,of Mr A. AY. Hall, the Speaker was directed to issue a warrant to the Clerk of Writs for a byeelection to fill tbp vacancy. FIN A NCR BILL. STATEMENT BY PREMIER. When introducing the second Finance Bill, I announced to ibis Hou«e, and to the country generally, that the prospective doliciL lor the current financial year, on the basis of Inst year’s liegislation and scale of operations, would on the present estimates, amount to approximately .-£5,500,QU0- Ibis amount represented an increase of L 1,000,000 over the amount announced in niy review ol the financial situation issued at the beginning of February. The people arc, naturally, perturbed at 111i/s increase in the alreadylarge shortage t<> be made good before the budget for the year can be balanced, and are doubtless anxious as to the nature of the further burdens that they will be called upon to carry. Many people who are not in touch with financial alfairs have evidently found it difficult to understand the sudden increase of one million pounds in the estimated budget, shortage, and some apparently have wrongly concluded that the Government has been withholding part or, the tacts, and giving the information to the country in instalments. Any midi conclusion is quite incorrect, lor the Govei linient has at all times endeavoured to place the full facts tie fore the people, well knowing that this is the first essential step towards meeting tin- situation. The reason for the increase in the estimated deficit, is Himply the rapid change for the wonsc in the economic and financial position which has taken place during the last few months. Tinfirst estimate, prepared in January last, was based on the returns lor tic first nine mouths of fi’st financial year, and tile outlook, so far as it could be seen at that time. During the l ;ls t quarter of the year, however, the rate, of decline i.u several iteniis ol revenue, notably customs, stamp revenue and railway revenue, was sharply accentuated. f'ndcr the circumstances, with the outlook clouded as to the conditions that, are likely to prevail during the year, both in this country and abroad . It. will be. obvious, to all that forecasting the position of the public finances is a very difficult matter indeed. The shortage on the revised <stimates, in round figures, is made up as follows;

REVENUE DECREASES. £ CWW 2.1M1.00H Stamp revenue 400.000 Land and income tax ... 000,000 Railways interest 1.00U.000 Other items 500,000 Total £4.500,000 EXPENDITURE INCREASES. C Unemployment subsidies ... 600,000 Debt ('barges 200.000 Other items, pensions, etc. ... 200,000 Total £1.000,000

Grand total £54)00,000 These figures do not allow lor the loss of revenue that will accrue as a result of the Hawke’s Bay earthquake, which item cannot be estimated at present, or lor any additional funds that may have to be -provided from revenue for the unemployment problem. The stops already taken to meotthe situation 1 detailed when introducing the Second Finance Bill. These proposals may be .summarised as follows:- —Reductions in salaries and wages £1,390.000: -economies apart from salaries and wages. £700.000; use of reparation moneys, £330.000: additional postal revenue £900,000; total, £3,320,000. On the present estimates, this leaves somewhere about £2,250,000 still to be provided before a balanced budget is obtainable. Some additional taxation is inevitable, but the Government realises that, under the present economic conditions, it is imperative that, the amount to be obtained in this way must be as small as possible, and, after careful consideration of the position, 1 do not propose to take any steps to that direction until the normal session, which however, will probably be called a little earlier than usual. In the meantime I. will have the opportunity of making a more thorough examina tion of the position than, has been possible in tbe short time at my disposal, and under the stress of this emergency session of Parliament. Additional data will be available and the ere lid

of events should be clearer than at present. In addition, by that time the effect of tin? economies already made will be more easily gauged, and there will be more information as to what further economies can be effected. In this connection 1 may say that the Economy Committee have not yet completed their work, and though provision. is being made to effect a saving

of £230,000 in education, it is hoped

that the special Committee of Investigation which is to he set up shortly, will be able to make further reductions in a large amount of approximately ' £4.500.000 per annum at present -spent on education. As indicated in my statement of the position issued early in February, another matter remaining for review is the present arrangements concerning highways finance. The relief to the consolidated fund, through transferring the charge for subsidies to local authorities and other items to taxation earmarked for highways, which under last, year’s legislation is operative to 31st August next, should certainly he continued. When that legis-

; lation was passed an undertaking was | given that the whole question of highj ways finance would be investigated by i a Parliamentary Committee, and T j propose to arrange for this to he j done in the ordinary session, so that j finality may he reached as to what ! hearing this question will have on the j budget. j To sum up the position, it is clear | that a large sum has vet to lie found i before the budget can be balanced. | but the Government proposes, in the j meantime, to make a further careful t review of the estimates of the shortage, and of the benefit to ho obtained : from the economies already effected, : and. at the same time, to continue its | efforts to obtain further savings anil ' economies with the object of reducing :iniy necessary further demands o n the . taxpayer to the lowest possible dbnen.sions.

END OF SESSION. AY ELLINGTON, April 24. Replying to a question asked by the Leader of the Opposition, Air Forbes said the only business of vital importance still to bo dealt with before tlie end o! the session consisted of the Finance Bill No. 2 and the Earthquake Bill. He considered that as there has already been long discussions on both measures, it- ought to be possible to terminate the session by Friday night. .Members- Hear. Hear.

Air Forbes added that- if it was not possible to reach finality then the session should not extend more than a day or two into next week. EARTHQUAKE BILL.

Mr .lull presented the report of the Committee on the Hawkes Bay Earthquake Bjll. He said the Committee recommend the Bill he allowed to proceed with amendments and had made further recommendations, providing inter alia for favourable consideration to lie given the question of making grants out of the Earthquake Relief Fund in eases where workers, killed or injured by the earthquake, were not ■litdied to compensation under the ’Yorkers Compensation Act. Also for the jssuc ol regulations covering restriction and regulation of rents, and lot giving people in the affected area an indication of assured and definite help in this respect. The Committee is empowered to authorise, by way of a grout, the restoration of homes to a reasonable degree. Tbe Committee is further empowered to recommend the Minister of Finance, to make payment of a grant to persons or classes of persons in case of damage to businesses, or other forms of damage on a basis which seems equitable to tbe Committee.

In outlying tiie amendments to tbe Bjll submitted by the Committee, Air • hill said they included a proviso designed to overcome objections to the assessment of Insurance Tax Bill which had originally fixed the tax at Is Gd per £IOO of insurance contracts of all classes irrespective of the period. '('lie proviso (hanged the basis to a tax of sixpence per £IOO in respect- ni contracts, the terms of which did not exceed three months; of Is per £lPf! in respect of contracts for terms between three and six months and: Is 6d per £IOO in respect of contracts for terms between six and twelve month'-. Contracts, the terms of which extended beyond twelve months, were taxed on a basis of sixpence per £IOO for every extra three months or shortage of period. In connection with the insurable pro. perty tax. it was proposed that a ten per cent, exemption .should be limited to sums not exceeding five thousand sterling. FINANCE BILL. Urgency was accorded its passage of the Finance Bill No. 2, wlijeh was read a second time without division. 'the Committee stage occupied the House throughout the evening and early part of this morning. Strenuous objection was raised to a clause reducing the National Provident Fund, and maternity bonus from £6 to £‘4 and an amendment moved by Mr J. A. Nash, seeking to restore the bonus to jts original figure, was supported by .Messrs Black, Harris, Kyle, J. A. Nash. Williams. Wright and Young, in addition to Labour members.

The amendment was defeated by 27 to 22.

Tlie House adjourned at 8.10 a.m till 2.30 nun.